Siemens Expanding Investments in U.S. Digital Capabilities Including $175 Million R&D Ramp Up

March 27, 2018

Eight new U.S.-based MindSphere Application Centers for digital
applications – transforming data into real value for customers
More than $1 billion investment in U.S. R&D annually; $175 million
increase in R&D spending year-over-year
Hundreds of job openings for talented software developers and
programmers, cloud and data scientists

CHICAGO–(BUSINESS WIRE)–Today at the Digital Manufacturing and Design Innovation Institute
(DMDII) in Chicago, Siemens demonstrated its approach to taking the
Fourth Industrial Revolution from concept to reality at its annual U.S.
Innovation Day. The event showcased real-world applications of digital
solutions that are enabling customers across the company’s largest
market to reduce costs, increase speed, develop new business models, and
improve the quality of life for millions of Americans.

The City of Chicago is one of these customers and saves millions of
dollars by retrofitting its water supply with Siemens technology.
Siemens has teamed up with Microsoft to integrate alternative energy
sources for cleaner and more efficient data center operations, helping
establish the world’s first zero-carbon, waste-to-power data center in
Cheyenne, WY. With the Atlanta Streetcar, Siemens established a
predictive maintenance program that puts more intelligence behind data
points to reduce delays for streetcar riders as well as save energy.
Additionally, Siemens is teaming up with Chicago-based Commonwealth
Edison (ComEd) to help build and test software that will allow the
utility to manage clusters of microgrids simultaneously.

By using Siemens digital twin software, companies can reduce their
product development time from months to weeks – like the startup
RadioBro, which is establishing its IoT device business in the aviation
and aerospace industry with an unparalleled time-to-market. Siemens also
provided a breakthrough solution for autonomous driving that minimizes
the need for extensive physical prototyping while dramatically reducing
the number of logged test miles necessary to demonstrate the safety of
these vehicles.

“With the arrival of the Internet of Things in industry and
infrastructure, many organizations are still trying to understand how to
incorporate digital strategies into their business models,” said Roland
Busch, Chief Technology Officer and Member of the Managing Board of
Siemens AG. “Siemens has reinvented itself into one of the world’s top
10 software companies and is continuing to expand its digital
capabilities. With our MindSphere Application Centers, we’re combining
deep expertise in automation and electrification with our unique
industrial software offering to enable our customers to leverage digital
solutions for their specific needs.”

Siemens is expanding its investments in U.S.-based digital capabilities
to co-create intelligent solutions with customers. It’s the first
company worldwide to create 20 centers for digital customer applications
in the industrial sector. Each of the MindSphere Application Centers
serves multiple locations in different countries and specializes in a
particular industry where Siemens is active. About 900 software
developers, data specialists, and engineers are working with Siemens
customers at these centers to develop digital innovations for data
analysis and machine learning. These new solutions are being developed
on MindSphere, Siemens’ open, cloud-based operating system for the
Internet of Things (IoT).

In order to get closer to its customers, the company has distributed its
20 centers across around 50 locations in 17 countries worldwide. Eight
of these digital service hubs are located in the United States – in
Austin, Foster City, Atlanta, Alpharetta, Pittsburgh, Berkeley and
Orlando – and constitute the largest footprint for these centers outside
of Germany. Siemens launched its MindSphere IoT operating system across
the company about one year ago. Approximately one million devices and
systems are now connected via MindSphere, and this figure will reach
1.25 million by the end of fiscal 2018.

The company has also increased its U.S. R&D investment by $175 million
year over year to $1.3 billion in fiscal 2017 – a 16 percent increase –
with a strong focus on digital innovation. In Chicago, for example,
Siemens is investing $13 million annually in a new digital R&D hub
focused on cloud and Internet of Things applications to support the
building management and automation market. Also on a global level,
Siemens will again increase its global R&D expenditures in fiscal 2018
and is investing an additional sum of about $600 million. As a result,
R&D spending will increase from nearly $6.3 billion in fiscal 2017 to
$6.9 billion in fiscal 2018.

“From digital twins and digital services to the Internet of Things and
Artificial Intelligence, Siemens is innovating next-generation digital
technologies to help cities and companies across the country realize
measurable value from data,” said Lisa Davis, CEO of Siemens USA. “To
further this customer value proposition and prepare our company for the
future, we’re investing in the next-generation workforce, which is
paramount to our future success.”

Siemens has more than 1,500 open jobs across the United States, most of
which require some software or STEM-related education. Siemens is
training and recruiting people with backgrounds in computer science and
engineering combined with expertise in software development and
programming. For example, Siemens has hired nearly 150 people at
Mindsphere Application Centers to provide digital services for rail,
smart buildings, and infrastructure. The company’s Building Technologies
Division is hiring 120 people in Illinois and Texas for its digital
services hub, while Product Lifecycle Management (PLM) is hiring 100
digital positions in software development and coding. Siemens’ R&D
centers in Berkeley, Princeton, and Charlotte are hiring researchers and
scientists in the field of data analytics, artificial intelligence,
machine learning, 3D design, and cybersecurity.

Siemens has also expanded its innovation pipeline by securing over
15,000 patents in the U.S and submitting more than 1,000 U.S. invention
disclosures in 2017 alone, amounting to about five inventions per
working day.

Disclaimer: The financial statements of the Siemens Group are
reported in Euro. For this press release selected numbers have been
translated to US-$ with the spot rate as of Feb. 28, 2018 (1,2214)

This press release, press pictures, and other material are available at www.usa.siemens.com/innovationUS.

Editor’s note: To virtually participate in the event beginning at
12:30 p.m. CST on March 27, register here.

Siemens Corporation Siemens Corporation is a U.S. subsidiary of
Siemens AG, a global powerhouse focusing on the areas of
electrification, automation and digitalization. One of the world’s
largest producers of energy-efficient, resource-saving technologies,
Siemens is a leading supplier of systems for power generation and
transmission as well as medical diagnosis. With approximately 372,000
employees in 190 countries, Siemens reported worldwide revenue of $92.0
billion in fiscal 2017. Siemens in the USA reported revenue of $23.3
billion, including $5.0 billion in exports, and employs approximately
50,000 people throughout all 50 states and Puerto Rico. To receive
expert insights, sign
up for the Siemens’ U.S. Executive Pulse leadership blog.

Contacts

Siemens Corporation
For journalists
Brie Sachse,
202-730-1013
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or
Annie
Satow, 202-316-0219
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