Key Points
- Siemens announces a €2 billion investment strategy focused on boosting future growth, driving innovation, and increasing resilience.
- The investment includes the establishment of a high-tech factory in Singapore to cater to the growing Southeast Asia markets.
- Siemens aims to strengthen its position in core technologies, such as simulation, digital twins, and artificial intelligence, while expanding its global presence and diversifying its business.
Siemens has unveiled its investment strategy aimed at boosting future growth, driving innovation, and increasing resilience. The company plans to allocate €2 billion primarily for new manufacturing capacity, innovation labs, education centers, and other facilities. In line with this strategy, Siemens has announced the establishment of a state-of-the-art high-tech factory in Singapore, targeting the flourishing Southeast Asia markets.
Roland Busch, President and CEO of Siemens AG, emphasized the importance of their technologies in addressing long-term growth trends and supporting customers in enhancing their competitiveness, resilience, and sustainability. Siemens has been experiencing robust growth, prompting the announcement of this investment strategy to further propel their future expansion, foster innovation, and enhance resilience. Busch highlighted the company’s commitment to combining the physical and digital realms while focusing on diversification and local business expansion. Siemens aims to strengthen its global presence and cater to the most significant markets worldwide.
The investment plan also entails an expected increase of approximately €0.5 billion in research and development (R&D) expenditures in fiscal year 2023 compared to the previous year. This additional R&D funding will primarily focus on reinforcing Siemens’ leadership position in core technologies such as simulation, digital twins, artificial intelligence, and power electronics. Furthermore, it will support the advancement of the Siemens Xcelerator open digital business platform. Siemens has recently forged partnerships with Microsoft to expedite code generation for industry automation utilizing ChatGPT, and with NVIDIA to develop the industrial metaverse, aimed at enhancing the design, planning, production, and operation of factories and infrastructure.
Siemens recognizes the growing demand in Southeast Asia and, therefore, plans to establish a brand-new high-tech factory in Singapore. Leveraging Siemens’ cutting-edge digital twin and intelligent hardware technologies, this facility will exemplify the potential of digitalization and incorporate highly automated manufacturing processes. The investment in this factory is estimated to be around €200 million and will not only showcase a new standard for connectivity but also generate over 400 employment opportunities.
In addition to Southeast Asia, Siemens acknowledges the importance of China as a fast-growing market. As part of their investment strategy, Siemens will expand its digital factory in Chengdu with an investment of €140 million (equivalent to RMB 1.1 billion), resulting in the creation of 400 new jobs. Siemens’ Chinese customers are recognized as early adopters of new technologies, particularly in the fields of digitalization and high-tech manufacturing. To further support this market, Siemens has also announced the establishment of a digital R&D Innovation Center in Shenzhen, aimed at accelerating the development of motion control systems with digitalization and power electronics technology. The Siemens Xcelerator open digital business platform was introduced in China in November 2022.
Siemens has been making a series of investment announcements to reinforce its global presence and cater to regional growth opportunities. These include expanding production in Trutnov, Czech Republic, enhancing capacity at the WEF Global Lighthouse Factory in Amberg, Germany, and investing €30 million to expand the switchgear plant in Frankfurt-Fechenheim, Germany. Additionally, Siemens Mobility recently disclosed its plan to invest $220 million in constructing a new rolling stock factory in Lexington, North Carolina, in response to the growing demand for passenger trains in the United States. This initiative is projected to create more than 500 jobs by 2028.
It is important to note that the planned investments of €2 billion and the anticipated increase of approximately €0.5 billion in research and development also encompass Siemens Healthineers, reflecting the company’s comprehensive approach to strategic growth and development.
About Siemens
Siemens AG (XETRA: SIE-DE) is a Germany-based technology company focused on industry, infrastructure, transport, healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people.
It operates through following segments: Digital Industries, which offer products and system solutions for automation used in discrete and process industries; Smart Infrastructure, which supplies and connects energy systems and building technologies; Mobility, which combines all businesses in the area of passenger and freight transportation; Healthcare, which supplies technology to the healthcare industry and engages in diagnostic imaging and laboratory diagnostics; Energy, through Siemens Energy, a global leader in the transmission and generation of electrical power; Financial Services (SFS), which offers leasing solutions and equipment, project and structured financing in the form of debt and equity investments. To learn more, visit www.siemens.com
Credits: Photo from siemens.com
