Siemens presents $2.19 billion investment strategy to boost growth

On the same day, Siemens announced a new high-tech factory in Singapore, to serve booming Southeast Asia markets.

“Our technology addresses 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 CEO 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.”

The model of Siemens' new high-tech factory in Singapore

In addition, there is an expected increase of around $547.4 million in research and development (R&D), such as AI and the industrial metaverse, in fiscal year 2023. This R&D is focused on strengthening Siemens’ leading position in core technologies including simulation, digital twins, AI or power electronics, as well as supporting 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 and additional capacities in Southeast Asia

To meet growing demand in Southeast Asia, Siemens announced an entirely new high-tech factory in Singapore, which will be developed using Siemens' own leading digital twin and innovative, intelligent hardware technologies.

Investment in the factory will be around $218.9 million. The plant will set a new standard for connectivity to showcase the possibilities of digitalisation, as well as incorporating highly automated manufacturing processes. The investment will create over 400 jobs.

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 invested $32.8 million to expand its switchgear plant in Frankfurt-Fechenheim, Germany, while Siemens Mobility recently announced spending $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.

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