Siemens AG Announces EUR 2 Billion Investment

Siemens AG has announced a EUR 2 billion investment strategy aimed at supporting future growth, promoting innovation and increasing resilience, primarily for new manufacturing capacity as well as innovation laboratories, training centers and other company-owned facilities. The company also opened its new high-tech factory in Singapore to serve the growing Southeast Asian markets.

Roland Busch, President and Chief Executive Officer of Siemens AG, made the following comments on the matter:

"Our technologies address secular growth trends where our customers need our support to become more competitive, resilient and sustainable. Our company is experiencing growth significantly above market level. Today we are announcing an investment strategy to accelerate future growth, promote innovation and increase flexibility. These investments support our focus on diversification and 'local for local' operations, as well as our strategy of combining the real and digital worlds. We are clearly strengthening our strong global presence to support growth in the world's most important markets."

The following information was provided about the company's investments and activities:

In fiscal year 2023, an increase of approximately EUR 0.5 billion is expected in research and development (R&D) areas such as artificial intelligence and industrial metaverse compared to the previous year. This R&D focuses on strengthening the company's leading position in core technologies such as simulation, digital twins, artificial intelligence or power electronics, while also supporting the development of the Siemens Xcelerator open digital business platform. The company recently announced a partnership with Microsoft to accelerate code generation for industrial automation using ChatGPT. The company is collaborating with NVIDIA to create an industrial metaverse universe to improve the design, planning, production and operation of factories and infrastructure.

New and additional capacity in Southeast Asia

To meet growing demand in Southeast Asia, the company announced a new high-tech factory in Singapore that will be developed using Siemens' proprietary leading digital twin and innovative, intelligent hardware technologies. Investment in the factory will be approximately EUR 200 million. The facility will set new standards in connectivity to showcase the opportunities offered by digitalization and will bring together highly automated manufacturing processes. This investment will provide employment for over 400 people.

Global investment wave with strategy covering all regions

As part of its investment strategy in China and rapidly growing business volume, Siemens will also expand its Digital Factory in Chengdu by investing EUR 140 million (RMB 1.1 billion) and creating new jobs for 400 people to serve local growth opportunities in China. Many of Siemens' Chinese customers, particularly in digitalization and high-tech manufacturing, are early adopters of new technologies. For this reason, the company also announced its investment in a new digital R&D Innovation Center in Shenzhen to accelerate the development of motion control systems supported by digitalization and power electronics technology. The Siemens Xcelerator open digital business platform was launched in China in November 2022. Earlier this year, the company committed to expanding production in the city of Trutnov in the Czech Republic to increase capacity of the WEF Global Lighthouse Factory in the city of Amberg, Germany. Additionally, Siemens is investing EUR 30 million to expand its switchgear factory in Frankfurt-Fechenheim, Germany, while Siemens Mobility recently announced spending USD 220 million to build a new rail vehicle factory in Lexington, North Carolina to meet increasing demand for passenger trains in the United States. The facility will provide employment for over 500 people by 2028. The planned EUR 2 billion investment and the expected approximately EUR 0.5 billion increase in research and development also cover Siemens Healthineers.   Source