Bosch secures $225M to boost US chip production
Bosch has signed a preliminary memorandum of agreement (PMT) with the US Department of Commerce under the CHIPS and Science Act, paving the way for up to USD 225 million in potential funding to help upgrade its production site in Roseville, California.
The proposed investment would support the development of semiconductor manufacturing in the US.
Bosch says it has plans to invest up to USD 1.9 billion to transform the Roseville site into a facility that produces and tests silicon carbide (SiC) semiconductors.
“Production of SiC chips in the United States is a key part of our strategic plan to reinforce our semiconductor portfolio and support our local customers,” said Michael Budde, president of Mobility Electronics for Bosch. “Silicon carbide chips help to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles to provide affordable electromobility options for consumers.”
It was back in April last year that Bosch announced its intention to acquire the assets of US chipmaker TSI Semiconductors, with its wafer fab in Roseville. The deal closed in August 2023 and since then, Bosch has begun the process to transform the site. Starting in 2026, the first chips will be produced on 200-millimeter wafers based on the SiC Bosch technology.
The Roseville facility, which has nearly 40 years of semiconductor design and production expertise for automotive and industrial applications, currently employs around 250 associates. Bosch emphasises that workforce retention was a key factor in its decision to transform the existing fab rather than build a new facility.
“We took the unique approach to transform an existing wafer fab rather than build a new facility,” says Thorsten Scheer, plant manager in Roseville and regional president of Bosch Mobility Electronics in North America. “A major reason was the talented workforce in place at Roseville. Already they have shown their skill and resolve as we transform the site for future production of silicon carbide chips.”
Bosch has retained nearly all of the current workforce throughout the transition.
