BERLIN -- Robert Bosch opened a 1 billion euro ($1.2 billion) chip plant in Germany on Monday, in a record investment by the supplier as it gears up for the latest electric and self-driving cars.
The plant, located in a semiconductor hub near Dresden, enters service at a time of very tight supply and will increase Bosch's ability to serve automakers directly and rely less on third-party manufacturers.
"Every chip that we make here in Dresden is one chip less that is lacking. That helps," management board member Harald Kroeger told Reuters.
The specialist plant will not, however, make much of a dent in the global supply crunch that has forced many automakers to idle production and is expected by industry leaders and analysts to extend into next year.
"The fab (chip fabrication plant) may help to insulate Bosch and its key customers somewhat," said Asif Anwar at Strategy Analytics.
"But it is unlikely to serve as a gap filler to the current shortages being experienced in the automotive market."