Siemens to invest €2B to boost manufacturing; AI, metaverse part of ~€500M R&D
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Siemens (OTCPK:SIEGY) (OTCPK:SMAWF) will invest â¬2B to boost manufacturing capacity, including a new facility in Singapore and expansion of its digital factory in Chengdu, China.
The German conglomerate said that it will spend ~â¬200M to build a high-tech factory in Singapore using its own intelligent hardware technologies to meet growing demand in Southeast Asia. The investment will create over 400 jobs.
Siemens added that it will invest â¬140M (RMB 1.1B) to expand its digital factory in Chengdu to serve the local growth opportunities in China which will create 400 new jobs.
The company also announced the investment in a new digital R&D Innovation Center in Shenzhen to boost development of motion control systems with digitalization and power electronics technology.
"We are clearly doubling down on our strong global presence to support growth in the most relevant markets in the world," said Siemens' President and CEO Roland Busch.
The â¬2B investment is mainly for new manufacturing capacity, innovation labs, education centers and other own sites, according to the company.
Siemens added that there there is an expected increase of about â¬0.5B in research and development (R&D), such as artificial intelligence (AI) and the industrial metaverse, in fiscal year 2023 versus prior year.
Siemens said it recently announced a partnership with Microsoft (MSFT) to speed up code generation for industry automation by using ChatGPT. In addition, the company is working with Nvidia (NVDA) to develop the industrial metaverse to improve design, production and operation of factories and infrastructures.
The company noted that the planned â¬2B investment and expected increase of ~â¬0.5B in R&D include Siemens Healthineers (OTCPK:SEMHF) (OTCPK:SMMNY).
Siemens had raised its raised its outlook in May while reporting better than expected FQ2 results in May. This was the second time the company had raised its guidance in FY23.
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