To boost future growth, drive innovation and increase resilience, Siemens has presented its investment strategy. Particularly, this involves €2 billion mainly for new manufacturing capacity as well as innovation labs, education centers and other own sites. Siemens has announced a new high-tech factory in Singapore, to serve the booming Southeast Asia markets.

“Our technologies address secular growth trends where our customers need our support to become more competitive, resilient and sustainable. Siemens is experiencing significantly above-market growth. Today, we announce an investment strategy to boost future growth, drive innovation and increase resilience,” said Roland Busch, President and Chief Executive Officer of Siemens AG.

“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.”

In addition, the company expects to increase around €0.5 billion in research and development (R&D), such as artificial intelligence and the industrial metaverse, in fiscal year 2023 versus prior year. This R&D strengthens Siemens’ leading position in core technologies including simulation, digital twins, artificial intelligence, or power electronics. In addition, it also supports the development of the Siemens Xcelerator open digital business platform.

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

New, Additional Capacities in Southeast Asia

To meet growing demand in Southeast Asia, Siemens confirmed an entirely new high-tech factory in Singapore. The factory will be developed using Siemens’ own leading digital twin and innovative, intelligent hardware technologies. Investment in the factory will be around €200 million.

Moreover, the plant will set a new standard for connectivity to showcase the possibilities of digitalization, as well as incorporating highly-automated manufacturing processes. The investment will create over 400 jobs.

Wave of Global Investments

As part of its investment strategy and fast-growing business in China, Siemens will also expand its digital factory in Chengdu to serve the local growth opportunities. Particularly, the company is investing €140 million (RMB 1.1bn) and creating 400 new jobs in China.

Many of Siemens’ Chinese customers are early adopters of new technologies especially in digitalization and high-tech manufacturing. For that reason, Siemens also announced the investment in a new digital R&D Innovation Center in Shenzhen to speed up development of motion control systems with digitalization and power electronics technology. Siemens launched the Xcelerator open digital business platform in China in November 2022.

Series of Announcements

Earlier this year, Siemens committed to expand production in Trutnov, Czech Republic, to enhance capacity at its WEF Global Lighthouse Factory in Amberg, Germany. Moreover, Siemens invests €30 million to expand its switchgear plant in Frankfurt-Fechenheim, Germany. Meanwhile, Siemens Mobility recently announced spending US$220 million to build a new rolling stock factory in Lexington, North Carolina, to meet growing demand for passenger trains in the United States. The plant will create more than 500 jobs by 2028.

The planned €2 billion investments and expected increase of around €0.5 billion in research and development include Siemens Healthineers.