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Semiconductors – market of the future: Bosch is growing faster than the market

Semiconductors – market of the future: Bosch is growing faster than the market 

Driving force in the automotive industry

  • Jens Fabrowsky: “When it comes to semiconductors for vehicles, we have a singular advantage: Bosch is the only company equally at home in the automotive and semiconductor industries.”
  • Electrification and automated driving are fueling the growth of Bosch’s semiconductor business.
  • Every new vehicle has an average of nine Bosch chips on board.

 

Reutlingen, Germany – Every car nowadays makes use of semiconductors, and that has been true for quite a while. A key technology in today’s modern world, these chips are core components of electrical systems – including those in vehicles. They regulate the powertrain and vehicle handling, tell the navigational system which way the vehicle is going, and signal the airbag to deploy when needed. Having been making semiconductors for more than 45 years, Bosch today is one of the world’s leading manufacturers of chips for mobility applications. “Semiconductors may have been around for a long time, but we have yet to realize their full potential. These components are key to modern-day mobility, and it is impossible to imagine cars today without them,” says Jens Fabrowsky, member of the executive management of Bosch’s Automotive Electronics division. In 2016, every vehicle newly registered worldwide had an average of more than nine Bosch chips on board. “When it comes to semiconductors for cars, we have a singular advantage: Bosch is the only company equally at home in both the automotive and semiconductor industries,” Fabrowsky says. In 2018, every new vehicle featured semiconductors worth 370 dollars (source: ZVEI), and thanks to increasing electrification and automation, demand for chips in vehicles is expected to rise further over the next few years.

 

Semiconductors may have been around for a long time, but we have yet to realize their full potential. These components are key to modern-day mobility, and it is impossible to imagine cars today without them.

Jens Fabrowsky, member of the executive management of Bosch’s Automotive Electronics division
The ultimate discipline: semiconductors for the auto industry

The global semiconductor market is worth billions: the market research company Gartner expects global semiconductor sales to reach 451 billion dollars in 2018. By 2019 alone, the market will have grown at an annual growth rate of more than 5 percent (source: PwC). “The Bosch semiconductor business is growing faster than the market,” Fabrowsky says. In the semiconductor market, the ultimate discipline is making chips for vehicles. Bosch has been making vehicles smart since the 1970s, when it started equipping them with its application-specific integrated circuits (ASICs). In a car, chips are exposed to strong vibrations and extreme temperatures that range from far below zero to far above 100 degrees Celsius. This requires higher standards for the toughness of these special components. Developing semiconductors that can withstand these stresses for a vehicle’s entire lifetime is an intensive process. Here is where Bosch leverages its special dual role: while other companies can process the information collected from semiconductors, Bosch can also apply its deep understanding of the physical principles at work in the chips, and of how to gather the data and ultimately integrate it into the vehicle systems. “Our comprehensive expertise in semiconductors helps us to both develop new automotive functions and steadily improve the chips themselves,” Fabrowsky says. Bosch holds over 1,500 patents and patent applications for engineering and manufacturing its semiconductors.

Progress in microelectronics is what made development of assistance systems and automated driving possible in the first place.

Jens Fabrowsky, member of the executive management of Bosch’s Automotive Electronics division
Electromobility and driver assistance systems boost demand

Bosch’s current semiconductor portfolio focuses on microelectromechanical systems (MEMS), ASICs for vehicle ECUs, and power semiconductors. Without the latter, there would be no hybrid or electric vehicles, as they regulate the electric motor and make sure that the battery is being used as efficiently as possible. “Power electronics for hybrid and electric vehicles are a growth driver for Bosch,” Fabrowsky says. Besides electrification, continued strong growth in demand for driver assistance systems is ensuring that more semiconductors with more and more functions are finding their way into cars. Chips with built-in “intelligence,” known as ASICs, are tailored to a particular application; for instance, signaling to airbags in a vehicle when they should deploy. These chips control handling to ensure a consistently safe journey. They also boost the measured signal from radar sensors, so that the proximity warning always functions reliably. “Progress in microelectronics is what made development of assistance systems and automated driving possible in the first place,” Fabrowsky says. Bosch microelectromechanical systems, or MEMS for short, are the sensory organs of modern vehicles. They supply a vehicle’s ECUs with important information regarding its handling, such as if the vehicle is braking or accelerating, or if it is skidding on a smooth road surface. The ESP electronic stability program uses this information to keeps cars, trucks, and even motorcycles safely on track and in their lanes.

MEMS sensors tell runners how many calories they are burning

As a key technology for the internet of things (IoT), Bosch semiconductors have applications that extend far beyond the world of vehicles. The company’s sensors can be found in more than half the world’s smartphones, and are indispensable for fitness trackers, drones, game consoles, and smart home applications. When it comes to MEMS sensors, Bosch is both a pioneer and the world’s leading manufacturer. More than 20 years ago, the supplier of technology and services itself developed the microfabrication technique, known worldwide as the “Bosch process,” used to make these semiconductors.

One billion euros for one of Europe’s most advanced wafer fabs

Bosch is underpinning its growth strategy for semiconductors with the single largest investment in the company’s history: it is putting some one billion euros into a new wafer fab in Dresden, which will manufacture 300 mm wafers. Following a rollout phase, pilot manufacturing operations are expected to start at the end of 2021. Compared with conventional 150 and 200 mm wafers, 300 mm wafer technology offers greater economies of scale. Up to 700 associates will be involved in the highly automated chip manufacturing process, working to plan, manage, and monitor production. After Reutlingen, the Dresden plant will be Bosch’s second wafer fab in Germany. With it, the company aims to expand its manufacturing capacity, and thus to further boost its competitive edge in global markets.

Tags: automotive electronics, MEMS, semiconductors, connected mobility

2018112301 / 21.11.2018 / Various / BOSCH /
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Calendary
NEPCON Japan, Tokyo, 16.-18.1.2019
SEMICON Korea, 23.-25.1.2019, Korea
30th Manufacturing World Tokio, JPN, 6.-8.2.2019
embedded world 2019, 26.-28.2019, Nuremberg, Germany
Middle East Electricity, Dubai, UAE, 5.-7.3.2019
PITTCON 2019, Philadelphia, USA, 17.-21.3.2019
AMPER 2019, Brno, CZ, 19.-22.3.2019
AUTOMATICON 2019, Warsaw, PL, 26.-29.3.2019
HANNOVER MESSE 2019, 1.-5.4.2019, DE
Hong Kong International Lighting Fair, 6.-9.4.2019
4th Manufacturing World Nagoya, JPN, 17.-19.4.2019
SENSOR+TEST 2018, 26.-29.6.2019, Nuremberg, DE
productronica 2019, Munich, DE, 12.-15.11.2019
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