The company, which was first named Siemens & Halske, was started by Werner Siemens and J. G. Halske in 1847 in Berlin as a manufacturer and installer of telegraphic systems. Siemens owned a patent for electroplating and was commissioned to construct a telegraphic line between Frankfurt and Berlin in 1848. This was the first major project of the company.
Siemens & Halske was already well equipped when the telegraph industry boomed in the mid-19th century. Again, the company received a commission to build Russia’s extensive telegraph system in 1853. Siemens & Halske was successful in its first deep sea telegraphic cable installation in 1857.
The company became an independent company under Wilhelm Siemens, one of Werner’s brothers. The name was changed to Siemens Brothers. The first engagement of the new company was the 11,000 kilometers span of telegraphic line from Calcutta to London.
After Alexander Graham Bell invented the telephone and reached Berlin in 1877, Siemens improved the device and began his own production. A decade later, the company also embarked in the manufacture of electrical lightings and power generation equipment. The research led to the discovery of the dynamo electric principle.
In 1909, the company developed the first automatic telephone exchange in Munich, serving about 2,500 clients. However, when the World War I broke out, Siemens shifted to the production of military communications devices. Soon, the company also produced gun locks for rifles, explosives and war aircraft engines.
The World War II has caused a lot of troubles to the company, including the laying off of employees. Some company infrastructures were destroyed by the bombs of the Allied forces. The Russian occupation of Berlin dismantled the factories.
After the War, the company started rebuilding. The head office was relocated to Munich. It started producing railroads, power generation equipments, telephones, medical solutions and consumer electronic products. The company started selling electron microscope in New York, making it the first product sold to the US market. Siemens also introduced its first mainframe computer.
The company was reorganized in 1966 and the mother company, named Siemens AG, was incorporated. The worldwide sales was recorded at DM10 billion and reached DM12.6 million in 1970.
In the 1980s, Siemens AG embarked on expensive R&D programs to stay at the top of the electronics industry. Some results included purchasing IBM’s microchips for $844 million.
Innovation became a part of Siemens AG’s tradition and business strategy. The company banks on intelligence, resources and applications to remain strong in the 21st century.
The company was divided into major subsidiaries to provide more focus on its diversifying industries and markets.