Siemens Unveils €2 Billion Investment Strategy Focused on Future Growth, Innovation, and Resilience, Including €200 Million Allocation for High-Tech Factory in Singapore

Ramp up of global investment in new high-tech factories, innovation labs and education centers to expand leadership in digitalization, automation and sustainability 

Siemens, a global leader in digitalization, automation, and sustainability, has announced a significant increase in global investments aimed at fostering sustainability and driving innovation. With a primary focus on expanding manufacturing capacity, Siemens plans to invest €2 billion in various high-tech factories, innovation labs, education centers, and other sites. This strategic move aligns with the company’s commitment to sustainability and positions them as a leader in the field.

One of the key announcements is the establishment of a new high-tech factory in Singapore, aimed at serving the thriving Southeast Asian markets. With an investment of approximately €200 million, the factory will leverage Siemens’ cutting-edge digital twin technology and intelligent hardware solutions. By incorporating highly automated manufacturing processes, the facility will set new standards in connectivity and digitalization. This investment will also create over 400 jobs, contributing to the growth of the local economy.

Roland Busch, President and CEO of Siemens AG, emphasized the company’s dedication to addressing long-term sustainability challenges faced by its customers. By doubling down on their global presence and focusing on diversification and local-for-local business strategies, Siemens aims to support growth in the most relevant markets worldwide.

In addition to manufacturing capacity expansion, Siemens has allocated approximately €0.5 billion for research and development (R&D) activities in fiscal year 2023. This investment will strengthen Siemens’ position in core technologies such as simulation, digital twins, artificial intelligence, and power electronics. It will also support the development of the Siemens Xcelerator open digital business platform, which promotes sustainable and innovative solutions.

Siemens’ sustainability efforts extend beyond Southeast Asia, with plans to expand its digital factory in Chengdu, China, investing €140 million (RMB 1.1 billion) and creating 400 new jobs. This expansion aims to capitalize on the growing demand for digitalization and high-tech manufacturing in China. Moreover, Siemens will establish a new digital R&D Innovation Center in Shenzhen, focusing on motion control systems development with digitalization and power electronics technology.

The company’s commitment to sustainability is evident in its collaborations with leading partners. Siemens recently joined forces with Microsoft to accelerate industry automation using ChatGPT, an artificial intelligence solution. Additionally, in collaboration with NVIDIA, Siemens is working on building the industrial metaverse, which aims to optimize the design, planning, production, and operation of factories and infrastructures.

Siemens’ sustainable investment strategy also includes other initiatives worldwide. The company plans to enhance production capacity in Trutnov, Czech Republic, and expand its WEF Global Lighthouse Factory in Amberg, Germany. Furthermore, Siemens will invest €30 million in expanding its switchgear plant in Frankfurt-Fechenheim, Germany. Siemens Mobility has also committed to investing $220 million in constructing a new rolling stock factory in Lexington, North Carolina, to meet the rising demand for passenger trains in the United States.

The investment in Singapore marks a significant milestone for Siemens, as it celebrates 115 years of operation in the country. The company’s presence in Singapore dates back to 1908 when it established its first technical bureau, becoming the first German industrial company to do so. Siemens’ investment in Singapore will create employment opportunities across various functions, including advanced manufacturing, supply chain management, quality management, and finance.

Siemens’ sustainable investment strategy demonstrates its commitment to environmental stewardship, technological advancement, and economic growth. By leveraging cutting-edge technologies, fostering local partnerships, and prioritizing sustainability, Siemens aims to drive innovation and increase resilience while supporting the transition to a more sustainable future.