Dresden attracts multi-billion € investments for chips, cars, IoT
November 2017
The region around Dresden in Germany ("Silicon Saxony") is increasingly establishing itself as a center for research and development around the Internet of Things. Over the next few years, international technology groups and research institutions will invest around 4.5 billion euros in the Dresden region. The money comes from Bosch, GlobalFoundries, Infineon, the Fraunhofer Gesellschaft research network and the German Aerospace Center (DLR). The investments will be used to develop and manufacture state-of-the-art processors, sensors, 5G mobile communications technology, new software tools and IoT platforms.
The technology company Bosch is one of the major investors. MEMS sensor marketleader Bosch having announced planned investment of EUR 1 billion in a new 15,000 m² wafer fab in Dresden. In the new factory - located in the building of bankrupt memory chip manufacturer Qimonda - Bosch intends to supplement its established MEMS manufacturing facilities with the development and production of ASICs. This represents the single biggest investment in Bosch’s 130-year plus history. Globalfoundries has also announced planned investment of more than EUR 1.5 billion in Saxony, where it plans to produce next-generation FDX chips used in automotive and IoT applications.
However, it is not only semiconductor companies that are developing new high-tech activities in the Dresden area. With Volkswagen, a major customer of the semiconductor industry wants to become even more involved in this region in the future. Volkswagen will build the electric version of the Golf in Dresden, and also VW's first fully electric car-designed vehicle I. D. Buzz is to leave the production line in Zwickau near Dresden. Production start is scheduled for 2019. In addition, the automaker intends to significantly expand its R&D activities in the electronics / IT sector. The new priorities are electric drive, AI and connected car.
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