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The Bosch semiconductor test center in Penang, Malaysia, is a key element of Bosch’s global semiconductor manufacturing network. With the continued high demand for chips for the automotive and consumer goods industries, Bosch is systematically expanding its semiconductor business. In August 2023, the company opened a new test center for chips and sensors in Penang at a cost of some 65 million euros. By the middle of the next decade, Bosch plans to invest a further 285 million euros at the site, bringing the total planned investment to around 350 million euros.
With our semiconductor test center in Penang, we have created additional capacity within our worldwide manufacturing network to meet the continued high demand for chips and sensors. Semiconductors are a decisive success factor for all Bosch business areas, and the expansion of this business is strategically very important. Dr. Stefan Hartung, chairman of the Bosch board of management
With our semiconductor test center in Penang, we have created additional capacity within our worldwide manufacturing network to meet the continued high demand for chips and sensors. Semiconductors are a decisive success factor for all Bosch business areas, and the expansion of this business is strategically very important.
The 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 at the site. In total, Bosch has around 100,000 square meters of land available on Penang’s mainland strip, providing space for further expansion. With approximately 4,200 associates across all activities, Penang is now Bosch’s largest location in Southeast Asia.
Approx. 350 million euros by the middle of the next decade
Automotive ICs & MEMS sensors
Up to 400 by the middle of the next decade
More than 18,000 square meters
Semiconductor backend manufacturing and final testing
Electronic control units for safety systems and driver assistance systems (airbag, ESC, parking assistance)
Electronic control units for electric and internal combustion powertrains
The investment in the new semiconductor test center builds on Bosch’s long standing presence in Malaysia and the Penang region. For many years, Bosch has operated manufacturing and business functions in the country and has continuously expanded its activities in line with global growth and customer demand. Over time, Penang has developed into a key Bosch location, benefiting from a strong industrial ecosystem and close links to the global semiconductor value chain.
The opening of the semiconductor test center marked a major milestone in Bosch’s development in Malaysia. It underlines the company’s long term commitment to the country as a strategic manufacturing location and highlights the role of Penang as an important part of Bosch’s global semiconductor manufacturing network.
Semiconductor manufacturing can broadly be divided into frontend and backend processes. In frontend manufacturing, the actual circuits are attached and patterned on silicon wafers in clean room environments. Backend manufacturing includes separating the individual chips from the wafers, assembling them, and performing extensive testing before delivery to customers.
For backend manufacturing, Malaysia is an important hub in the global semiconductor supply chain. The country is estimated to account for around 13 percent of global backend manufacturing. In recent years, the state of Penang alone has generated more than 5 percent of worldwide semiconductor revenue. Numerous companies involved in packaging, assembly, and testing are located in the region, creating a highly developed semiconductor ecosystem.
The new test center brings Bosch’s manufacturing network closer to partners along the semiconductor value chain as well as to customers in the important Asian market. This shortens delivery routes and logistics paths and strengthens Bosch’s competitiveness.
The test center in Penang is one of the most advanced facilities of its kind in Southeast Asia. The fully connected plant focuses on the final testing of semiconductors and sensors and meets the stringent quality and reliability requirements of automotive applications. Digitalized and automated processes support high volumes while ensuring traceability and consistently high quality.
At the site, Bosch tests Automotive ICs and MEMS sensors. These products are used in electronic control units for safety systems and driver assistance functions such as airbags, Electronic Stability Control (ESC), and parking assistance systems. In addition, the semiconductors are used in electronic control units for electric and internal combustion powertrains.
Bosch is testing semiconductors and sensors in Penang that are manufactured in its frontend facilities in Dresden, Germany, among other locations. The new test center therefore completes Bosch’s internal process chain, particularly for semiconductors produced in Dresden.
Bosch currently carries out most of the final testing of its semiconductors at locations in Reutlingen, Germany; Suzhou, China; Hatvan, Hungary; and Penang, Malaysia. With the additional capacity in Penang, Bosch is further strengthening its global semiconductor manufacturing network.
With the semiconductor test center in Penang, Bosch is reinforcing its position as a leading manufacturer of semiconductors and sensors and is securing reliable supplies for key industries now and in the future.