By Li Panpan

The German tech giant Bosch is spending around $1 billion to make EV components in Suzhou of eastern China's Jiangsu Province, as the company hopes to benefit from the country’s shift away from the combustion engine, reported Bloomberg on January 13.

Bosch plans to build a facility in Suzhou to develop, test, and manufacture car parts and automated-driving technology mainly for local automakers, the German manufacturer said on January 12.

Bosch is extending its bet on China even as the German government has warned against over-reliance on the country. At the same time, China remains the biggest EV market globally, and homegrown manufacturers BYD, Xpeng, and Nio are expanding rapidly, reported Bloomberg.

Statistics from South Korea’s SNE Research recently showed that Chinese battery manufacturers had extended their dominance over global supply, with the top two producers reaching a combined market share of 50% and leaving South Korean and Japanese rivals lagging behind.

Bosch, which employs around 55,000 people in China, said the new facility would focus on technology including silicon carbide power modules and integrated braking systems. The first phase of the new plant is scheduled to be completed by mid-2024, according to the Bloomberg report.