German engineering and tech company Robert Bosch GmbH said on Oct. 29 that it will invest over €400 million to expand its chip production in Germany and Malaysia in 2022.

The move comes amid an increase in the demand for chips "at breakneck speed," according to Bosch Chairman Volkmar Denner.

Most of the company's capital expenditure has been allocated to the company's new 300-millimeter wafer fabrication plant in Dresden, which will expand its manufacturing capacity next year.

About €50 million will be spent on the Reutlingen wafer fab. Bosch will also invest €150 million in additional clean-room space through 2023.

In addition, Bosch is building a semiconductor test center in Malaysia, which will test finished chips and sensors from 2023.