It's not just about self-driving cars

Robert Bosch GmbH made headlines this past month as various newsoutlets echoed Bloomberg’s headline: “Bosch to Build $1.1 Billion Chip Plant for Self-Driving Cars.” While it may not quite stray into alternative fact territory, the headlines is somewhat misleading because the chips are not reserved for self-driving cars. Buried within the article is the acknowledgement that Bosch says they will also be used for “smart homes and Internet-linked city infrastructure.” By all measures, it's clear the company intends to be a major player in the global supply chain for connected electronics. 

It’s true that the company is invested in the development of autonomous cars. In March of this year, it GmbH  announced a partnership with the American company NVIDA, which produces artificial intelligence (AI) systems for self-driving vehicles” in which it would  build  an “artificial intelligence self-driving systems for mass market cars” based on NVIDA Drive PX line with Xavier architecture.

So it does make sense that it would be considering the automotive customer, especially if it is true that, as the Bloomberg article states, each car purchased last year “contained an average of nine chips made by Bosch.”

However, the story that Bosch itself  tells about its plans for the factory it is building in Dresden, Germany are not that narrowly focused, as revealed by its press release. 

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Beyond the Headlines: Bosch’s $1.1 Billion Investment

German clouds on the horizon

The possibilities inherent in applying digitization to industry has earned a name of its own, Industry 4.0, with modified spelling when applied to Germany. In Europe, Germany is the leading star of this fourth industrial revolution. Progress on that front has not been as rapid as some had hoped due to some obstacles identified by a Mckinsey and Co. report published in March 2016.  But that is set to change now with the arrival of clouds built in Germany to meet the needs of Germany’s Industry 4.0.

The Mckinsey report, “Industry 4.0after the initial hype” (PDF download )  looks at perception, progress, and problems faced by the evolution of manufacturing in a digital age. It is based on survey responses from 300 industry experts in Germany, the US, and Japan.  In a nutshell, the anticipation raised a few years ago has resulted in some disappointments, as some businesses did not come up with a clear plan and timeline for implementing a digital strategy.  At this point, 60 percent of those surveyed said that they have come up against obstacles to executing digital strategies.

A fundamental problem for some of the companies was finding a way to integrate the data that comes in from various sources, something that is essential to extracting a comprehensive picture of the process to maximize efficiency that doesn’t compromise the data security or ownership when it passes into “third party technology and software providers.”   For the companies in Germany, there’s the additional concern of being certain to comply with the data privacy regulations in place and the distrust of datacenters located outside the country. 

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New IoT Clouds on German Horizon