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Siemens details €2bn factory boost with focus on Singapore, China

Siemens details €2bn factory boost with focus on Singapore, China

Business news |
By Nick Flaherty



Siemens is spending €2bn to ramp up manufacturing capacity, innovation labs and education centres with a focus on Singapore and China.

The company will boost R&D spending by €500m, build a new €200m factory in Singapore and expand its plant in Chengdu.

This follows expansion of production in Trutnov, Czech Republic, and at its WEF Global Lighthouse Factory in Amberg, Germany. It is also spending €30m on its switchgear plant in Frankfurt-Fechenheim, Germany, while Siemens Mobility recently announced spending $220 million to build a new rolling stock factory in Lexington, North Carolina. More announcements on European and US capacity are planned.

The new factory in Singapore will be developed using Siemens’ own leading digital twin and intelligent hardware technologies and will create 400 jobs.

The expansion of the Chengdu plant for the Chinese market will be supported by a new digital R&D Innovation Centre in Shenzhen to speed up development of motion control systems with digitalization and power electronics technology. The Siemens Xcelerator open digital business platform was launched in China in November 2022.

“Our technologies address secular growth trends where our customers need our support to become more competitive, resilient and sustainable. Siemens is experiencing significantly above-market growth. Today we announce an investment strategy to boost future growth, drive innovation and increase resilience,” said Roland Busch, President and Chief Executive Officer of Siemens AG.

“The investments underpin our strategy of combining the real and the digital worlds – as well as our focus on diversification and local-for-local business. We are clearly doubling down on our strong global presence to support growth in the most relevant markets in the world.”

The additional R&D spending, which includes the Healthineers subsidiary, will focus on artificial intelligence and the industrial metaverse to strengthen core technologies including simulation, digital twins, artificial intelligence and power electronics, as well as supporting the development of the Siemens Xcelerator open digital business platform.

The company recently announced a partnership with Microsoft to speed up code generation for industry automation by using ChatGPT. With Nvidia, Siemens is working to build the industrial metaverse to improve design, planning, production and operation of factories and infrastructures.

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