· Boost for Automotive Electronics division

Stuttgart/Reutlingen – The Bosch Group is investing some 550 million euros in the construction of a new manufacturing facility for 200 millimeter (eight-inch) semiconductors at its site in Reutlingen, near Stuttgart. Construction of the facility is to begin in the autumn of 2007. Rollout of production is planned for mid-2009. The plant will have a total capacity of up to 1,000 silicon wafers per day, equivalent to a daily production volume of up to one million microchips. "In investing heavily in state-of-the-art manufacturing technology, we are securing the long-term future of our international automotive electronics business," said Franz Fehrenbach, chairman of the Bosch Board of Management. Bosch has been manufacturing 150-millimeter (six-inch) semiconductors in Reutlingen for ten years now. The location can therefore draw on a wealth of expertise and has a good infrastructure.

Semiconductor and micromachined chips from Reutlingen are used above all in the automobile industry. As components in electronic control units, they form the "central nervous system" of many functions in the vehicle, including electronic safety systems such as ABS, ESP, or airbags, fuel-efficient and clean engines with electronic engine management, or modern driver assistance systems. On average, between 100 and 200 application-specific microchips are installed in a middle or luxury-class car. "We anticipate that the semiconductor market for automotive applications will grow by an average of ten percent per year in the medium term," said Dr. Bernd Bohr, member of the Bosch Board of Management and Chairman of the Automotive Group. In addition, the company is opening up additional marketing channels, especially in consumer electronics, via its recently founded subsidiary Bosch Sensortec. In total, some 800 jobs will be created in the new 200-millimeter semiconductor manufacturing facility by 2012. The company will be able to cover most of its requirements for qualified personnel internally – drawing especially on associates from a nearby facility.

Reutlingen: precision technology, high volumes
The new 200-millimeter wafer fab in Reutlingen will mainly be geared to the "smart power process." In this technology, integrated circuits combine on one chip highly sensitive signal processing and high-voltage circuits for the control of high-performance actuators. These chips have to work reliably even under the especially tough thermal and mechanical loads experienced during automobile operation. The technology applied here uses ultra-fine structures, which are deposited on the chips. In the initial stages, these structures will be 0.35 micrometers wide – far less than one hundredth of the diameter of a human hair. At a later stage, Bosch plans to halve structure width to 0.18 micrometers. Precision such as this makes extremely high demands of manufacturing technology. In addition, MEMS technologies are also to be rolled out in the 200-millimeter wafer fab, manufacturing micromechanical sensors that are used above all in the automobile, but also in cell phones, handhelds, or games consoles. With this move, Bosch is ensuring that it will be able to draw on the most advanced manufacturing technology in this growth market for many years to come.

Reutlingen is where the Bosch Automotive Electronics division is based, and is its most important development and manufacturing site for a large number of electronic components. The site is of great importance within the global manufacturing network as a pilot plant for innovative products such as driver assistance systems. Bosch employs a total of roughly 7,000 associates at three sites in Reutlingen, including 240 apprentices undergoing technical and commercial vocational training.

Photographs relating to semiconductor manufacturing in Reutlingen and to Bosch products featuring microchips are available at www.bosch-presse.de.

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 275,000 associates generated sales of 38.2 billion euros in fiscal 2009. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for growth. Each year, Bosch spends more than 3.5 billion euros for research and development, and applies for some 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH. Additional information can be accessed at www.bosch.com.

PI5485 - June 2006