As the semiconductor shortage continues to wreak havoc on the automotive industry, tech and logistics companies are retooling to cash in.
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German tech giant Bosch has opened the doors to a new semiconductor manufacturing facility in Dresden, which it hopes will plug the significant hole currently plaguing automotive supply chains.

The site – which was estimated to cost the company in excess of €1 billion (AU$1.57 billion) to build – will reportedly begin producing much-needed chips for vehicles by early September this year. It is so far unclear how the product will be distributed, and if German manufacturers – including Volkswagen, BMW, and Mercedes-Benz – will be given priority in the queue.

“The new [factory] is the single largest investment in the company’s history. This cannot be stressed too much. Its size and additional production capacity alone are impressive. The very latest methods of data-driven continuous improvement in production make the Dresden plant a smart factory,” said German Chancellor Angela Merkel.

“To put it another way: in this plant, natural and artificial intelligence have joined forces with the internet of things to form a productive symbiosis.”

The ongoing semiconductor shortage has wreaked havoc on automotive manufacturers since late 2020, causing a drop in production and removal of electronic features in some model variants. You can read more about how the crisis has affected individual marques in Australia by clicking here.

The dramatically increased demand for (and price of) semiconductor chips has also incentivised new suppliers to step into the arena. In February US President Joe Biden signed an executive order addressing the issue, following reports local manufacturing could contract as much as 20 per cent due to shortages.

CarAdvice has reached out to a spokesperson for Bosch in Australia for comment. This story will be updated when more information becomes available.