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Bosch to spin off semiconductor division in January 2028 - Finance news and analysis from Global Banking & Finance Review
Finance

Bosch to spin off semiconductor division in January 2028

Published by Global Banking & Finance Review

Posted on November 3, 2026

1 min read

· Last updated: November 3, 2026

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Bosch Announces 2028 Spin-Off of Semiconductor Division to Drive Expansion

Bosch's Strategic Move to Boost Semiconductor Business

Spin-Off Details and Timeline

Nov 3 (Reuters) - Bosch, the world's top automotive supplier, will spin off its semiconductor division in January 2028, it said on Tuesday.

Growth Targets and Sales Projections

Ambitious Revenue Goals

• The German firm said it aims to increase sales of the small components used in cars and e-bikes to 5 billion euros ($5.59 billion) by 2030

Current Organizational Structure

• Currently, the semiconductor activities are part of the Mobility Electronics division

Expansion of Manufacturing and Foundry Business

Opening Manufacturing Capacities

• The firm will increasingly open its manufacturing capacities to external partners and strategically expand its foundry business, it added

Global Semiconductor Network

Worldwide Sites and Future Plans

• Bosch, which relies on a network of around 40 semiconductor sites worldwide for research, development, and manufacturing, plans to further expand its test centre in Penang, Malaysia, by the middle of the 2030s

($1 = 0.8937 euros)

(Reporting by Paolo Laudani, Editing by Friederike Heine)

Key Takeaways

  • The spin‑off, effective January 2028, will carve out the semiconductor business currently housed within Mobility Electronics to unlock strategic focus and agility.
  • Bosch targets €5 billion in semiconductor sales by 2030, plans to open its manufacturing to third parties, and boost its foundry activities.
  • It will expand its Penang, Malaysia, semiconductor test centre—one of Southeast Asia’s most advanced—with up to €350 million of investment by the mid‑2030s, accommodating ~400 associates.

Frequently Asked Questions

When will Bosch spin off its semiconductor division?
Bosch will spin off its semiconductor division in January 2028.
What is Bosch's sales target for its semiconductor division by 2030?
Bosch aims to increase semiconductor sales to 5 billion euros by 2030.
Where will Bosch expand its semiconductor test centre?
Bosch will expand its test centre in Penang, Malaysia, by the middle of the 2030s.
Will Bosch's semiconductor manufacturing be open to external partners?
Yes, Bosch will increasingly open its semiconductor manufacturing capacities to external partners.
What division currently houses Bosch's semiconductor activities?
Currently, the semiconductor activities are part of Bosch's Mobility Electronics division.

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