Tier one auto industry supplier Bosch is investing heavily in where the market is headed, with a newly-announced $1.1 billion facility that will produce semiconductors uses in self-driving cars, smart homes and smart city infrastructure, Techcrunch informs. 

The new Dresden-based chip fab is set to start producing silicon commercially in 2021, and construction should wrap up in 2019.

The greatly expanded chip manufacturing capacity that this will afford Bosch is seen by the company as a key ingredient in helping them stay in their key supply position as automakers continue to shift focus to connected services and mobility platforms. Bosch is no novice when it comes to chipmaking, however; the company has supplied chips for cars, as well as more recent devices like smartphones, for over 40 years according to Bloomberg.