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Siemens’ €2bn plan includes motion control R&D centre

15 June, 2023

Siemens has announced plans to invest €2bn, mainly in new manufacturing capacity, as well as in innovation labs and education centres aimed at keeping it at the forefront of digitalisation, automation and sustainability. The plans include a €200m high-tech factory in Singapore, which “will set a new standard for connectivity to showcase the possibilities of digitalisation”, as well as a new R&D innovation centre in Shenzen, China, which will accelerate the development of motion control systems using digitalisation and power electronics technologies.

Announcing the investment plans, Siemens’ president and CEO Roland Busch said the aim was “to boost future growth, drive innovation and increase resilience”.

“Our technologies address secular growth trends where our customers need our support to become more competitive, resilient and sustainable,” he said. “Siemens is experiencing significantly above-market growth.

“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 new plant in Singapore will incorporate highly-automated manufacturing processes using Siemens' own digital twin and intelligent hardware technologies. The factory will create more than 400 jobs and will mainly serve the booming Southeast Asia market.

The company will also invest €140m to expand its digital factory in Chengdu, China, creating 400 new jobs.

Busch: combining the real and digital worlds

Siemens is planning to spend an extra €0.5bn on research and development (R&D) this year compared to last in areas such as AI (artificial intelligence) and the industrial metaverse. The R&D will focus on strengthening Siemens’ position in core technologies such as simulation, digital twins, AI and power electronics, as well as supporting the development of its Xcelerator open digital business platform.

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

Earlier this year, Siemens announced plans to expand production at its low-voltage switching plant in Trutnov in the Czech Republic, as well as extending capacity at its electronics site in Amberg, Germany, and investing €30m to expand its switchgear plant in Frankfurt-Fechenheim, Germany.

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