By Andy Szal
For Thomas Insights
German industrial and technology conglomerate Siemens plans to spend more than $2 billion to bolster its manufacturing operations worldwide, company officials announced.
The company said the nearly $2.2 billion funding would “mainly” go toward increasing production capacity but would also target research and development hubs and educational campuses. Siemens officials said the initiative would increase growth levels, promote innovation, and create resilience in its businesses.
The company announced specific plans for expansion in Asia, including a new $218 million factory in Singapore and a more than $150 million expansion of a digital facility in Chengdu, China. Details on further spending, including announcements in the U.S. and in Europe, will be disclosed throughout the year.
Siemens also plans to boost spending on research and development by roughly $545 million in the current fiscal year compared to the previous year, particularly targeting artificial intelligence (AI), digital twins, and simulation technologies, along with the open digital business platform known as Siemens Xcelerator.
Siemens President and CEO Roland Busch said the spending emphasized the company’s strategy to combine physical and digital industrial environments, as well as promote localized and more diverse business operations.