Press release #Connected mobility

Bosch opens new semiconductor test center for chips and sensors in Malaysia

350-million-euro investment by the middle of the next decade to strengthen global semiconductor supply chain

  • Fully connected test center in Penang creates additional capacity for Bosch to meet continued growth in chip demand.
  • Dr. Stefan Hartung: “The expansion of our semiconductor business is strategically very important for Bosch.”
  • New test center includes more than 18,000 square meters of clean rooms, office space, and R&D laboratories for up to 400 associates.
  • Bosch continues to invest in its worldwide semiconductor manufacturing network in Germany, the U.S., and Malaysia.
Athanassios Kaliudis

Athanassios Kaliudis >


Stuttgart, Germany / Penang, Malaysia – Global demand for chips for the automotive and consumer goods industries remains high. That is why Bosch is continuing to expand its semiconductor business. The company has now opened a new test center for chips and sensors in Penang, Malaysia, at a cost of some 65 million euros; it plans to invest a further 285 million euros at the site by the middle of the next decade. “With our new semiconductor test center in Penang, we are creating additional capacity within our worldwide manufacturing network to meet the continued high demand for chips and sensors,” said Dr. Stefan Hartung, chairman of the Bosch board of management. “Semiconductors are a decisive success factor for all Bosch business areas, and the expansion of this business is strategically very important.”

With our new semiconductor test center in Penang, we are creating additional capacity within our worldwide manufacturing network to meet the continued high demand for chips and sensors,

said Dr. Stefan Hartung, chairman of the Bosch board of management.

In total, Bosch has some 100,000 square meters of land available on Penang’s mainland strip. The new test center currently covers more than 18,000 square meters and includes clean rooms, office space, and laboratories for quality assurance and manufacturing. By the middle of the next decade, up to 400 associates will be working there. With the new factory and a total of 4,200 associates, Penang is now Bosch’s biggest location in Southeast Asia.

Semiconductor manufacturing can basically be divided into two sections: frontend manufacturing and backend manufacturing. For the latter, Malaysia is an important hub in the global semiconductor supply chain. The country is estimated to cover around 13 percent of global backend manufacturing. According to official figures, in recent years the state of Penang has generated more than 5 percent of worldwide semiconductor revenue. “The new test center in Penang brings our manufacturing network closer to the companies that serve the further value chain of semiconductor manufacturing as well as to customers in this important Asian market. That shortens delivery times and routes, and it improves our competitiveness,” says Dr. Markus Heyn, member of the Bosch board of management and chairman of the Mobility business sector.

One of the most cutting-edge test centers in Southeast Asia

The frontend is where the actual circuits are attached and patterned on the wafers; at Bosch, for example, this work is currently performed in the clean rooms of the wafer fabs in Reutlingen and Dresden. The backend is where the individual chips are then separated from the wafers, assembled, and tested. Bosch currently carries out most of the final testing of its semiconductors in Reutlingen, Germany; Suzhou, China; and Hatvan, Hungary. Those locations will now be joined by the new test center in Penang, Malaysia. The fully connected plant is one of the most advanced semiconductor test centers in Southeast Asia. Here, Bosch will immediately begin testing semiconductors that the company manufactures at its frontend in Dresden, among other locations. “Our new test center in Penang completes our internal process chain, especially for semiconductors from Dresden,” Heyn says.

Bosch invests further in chip business

Bosch is pursuing a global growth strategy with its semiconductor business. Over the next three years, the company plans to invest some three billion euros in Dresden and Reutlingen, both as part of its own investment plan and under the auspices of the European IPCEI ME/CT (“Important Project of Common European Interest on Microelectronics and Communication Technologies”) funding program. Following its expected acquisition of part of the business of TSI Semiconductors, based in Roseville, California, which is expected before the end of the year, Bosch plans to invest roughly an additional 1.4 billion euros in retooling the fab to support the latest manufacturing processes for silicon carbide semiconductors.

Penang Factsheet

Contact person for press inquiries:

Athanassios Kaliudis
Phone: +49 711 811-7497
Twitter: @Sakis_JD

About Bosch

The Bosch Group is a leading global supplier of technology and services. It employs roughly 429,000 associates worldwide (as of December 31, 2023). The company generated sales of 91.6 billion euros in 2023. Its operations are divided into four business sectors: Mobility, Industrial Technology, Consumer Goods, and Energy and Building Technology. With its business activities, the company aims to use technology to help shape universal trends such as automation, electrification, digitalization, connectivity, and an orientation to sustainability. In this context, Bosch’s broad diversification across regions and industries strengthens its innovativeness and robustness. Bosch uses its proven expertise in sensor technology, software, and services to offer customers cross-domain solutions from a single source. It also applies its expertise in connectivity and artificial intelligence in order to develop and manufacture user-friendly, sustainable products. With technology that is “Invented for life,” Bosch wants to help improve quality of life and conserve natural resources. The Bosch Group comprises Robert Bosch GmbH and its roughly 470 subsidiary and regional companies in over 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. Bosch’s innovative strength is key to the company’s further development. At 136 locations across the globe, Bosch employs some 90,000 associates in research and development, of which nearly 48,000 are software engineers.

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 upfront investments in the safeguarding of its future. Ninety-four percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The remaining shares are held by Robert Bosch GmbH and by a corporation owned by the Bosch family. The majority of voting rights are held by Robert Bosch Industrietreuhand KG. It is entrusted with the task of safeguarding the company’s long-term existence and in particular its financial independence – in line with the mission handed down in the will of the company’s founder, Robert Bosch.

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