According to the latest announcement from the US Department of Commerce, the US government has reached a non-binding preliminary cooperation with Bosch on a CHIPS and Science Act and plans to provide $225 million in direct funds and $350 million in loans to Bosch’s California wafer fab renovation project.
Bosch acquired TSI Semiconductors in 2023, acquired ownership of TSI’s 8-inch (200mm) wafer fab in Roseville, California, and said it would transform the wafer fab into a SiC silicon carbide production facility, with the goal of starting production in 2026. The Roseville wafer fab in California is Bosch’s first semiconductor production base in the United States. The renovation project costs $1.9 billion and will introduce the most advanced silicon carbide production process. The US Department of Commerce said that when the wafer fab is fully loaded, it is expected to produce most of Bosch’s silicon carbide semiconductors and account for more than 40% of the total production capacity of silicon carbide devices in the United States. In addition to direct funding and loans, Bosch plans to apply to the U.S. Treasury for advanced manufacturing investment credits equal to 25% of eligible capital expenditures.
Michael Budde, president of Bosch’s mobile electronics division, said that the production of silicon carbide chips in the United States is a key part of the strategic plan to strengthen the semiconductor portfolio and support local customers. Silicon carbide chips help achieve longer driving range and more efficient charging in battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV), providing consumers with affordable electric vehicle options.
Bosch Leads Employees in Transformation
The Roseville plant has nearly 40 years of rich experience in the design and production of semiconductors for automotive and industrial applications. Since acquiring the plant, Bosch has retained almost all of its 250 employees during the transformation process in preparation for the start of SiC production in 2026. The company provides advanced training, and the Roseville team can learn from other plants in Bosch’s global manufacturing network.
In addition to training existing employees, Bosch is investing locally to help cultivate future semiconductor expertise. The Bosch Community Fund provided a $100,000 grant to the Sierra College Foundation in Rocklin, California, for its Career Technical Education Support Fund. The grant helped support costs related to certification fees, microcontroller kits, development materials, software, protective gear, tools, entry fees and travel expenses for STEM competitions, and project supplies for STEM clubs.
Systematic Investment in Key Semiconductor Technologies
The Roseville plant is Bosch’s first semiconductor production site in the United States. In the coming years, the company plans to invest approximately $1.9 billion in the Roseville plant to upgrade the production facilities to state-of-the-art processes. Investments proposed by the CHIPS and Science Act will help support the site’s transformation. The site has already received a $25 million California Compete Tax Credit award from the Governor’s Office of Business and Economic Development (GO-Biz) to support the reconstruction and investment in Roseville.
Bosch has said it plans to apply for the U.S. Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is worth 25% of eligible capital expenditures. In addition to the proposed direct funding of up to $225 million, the CHIPS Program Office will provide Bosch with a proposed loan of approximately $350 million under the PMT – part of the $75 billion loan authority provided by the CHIPS and Science Act.
The United States’ Emphasis on The Semiconductor Industry
The semiconductor industry is at the heart of modern technology, with everything from smartphones to electric vehicles relying on high-performance chips. Looking back at history, the United States has always been a leader in the semiconductor field. In the 1960s, the rise of Silicon Valley marked the United States’ dominance in the global semiconductor industry. However, with the advancement of globalization and the spread of technology, other countries such as Japan, South Korea and China have gradually emerged as important competitors.
In the 1980s, Japan’s semiconductor industry rose rapidly, threatening the United States’ market position. In response to this challenge, the US government took a series of measures, including the establishment of the Semiconductor Manufacturing Technology Alliance (SEMATECH) to strengthen technology research and development and innovation. These efforts ultimately helped the United States regain its dominance in the semiconductor industry. Entering the 21st century, with the continuous advancement of technology and changes in market demand, the application of new materials such as silicon carbide has become a new focus of competition.
Bosch’s transformation project at the Roseville wafer plant in California is aimed at this cutting-edge field. Silicon carbide chips have higher efficiency and smaller size, which are particularly suitable for electric vehicles and renewable energy. Bosch plans to transform the wafer plant into a silicon carbide production facility, with the goal of putting it into production in 2026. The project is costly, but it is expected to significantly increase the United States’ production capacity in the field of silicon carbide devices, accounting for more than 40% of the global market.
The reason why the US government strongly supports this project is not only to maintain its leading position in the semiconductor industry, but also out of consideration for national security and economic interests. In recent years, trade frictions and technological competition between China and the United States have become increasingly fierce, and ensuring the security of key technologies and supply chains has become an important part of the national strategy. By increasing support for the local semiconductor industry, the United States hopes to reduce its dependence on external supply and enhance its competitiveness and autonomy.
In addition, Michael Budde, president of Bosch’s mobile electronics division, said that this project will help improve the range and charging efficiency of electric vehicles, thereby promoting the popularization of electric vehicles. This is not only a technological breakthrough, but also a contribution to environmental protection and sustainable development. The application of silicon carbide chips will make electric vehicles more efficient and economical, providing consumers with more choices.
The huge support from the US government for Bosch’s California wafer factory renovation project reflects its high attention and long-term planning for the semiconductor industry. This move is not only related to technological innovation and market competition, but also to the country’s strategic security and economic development. In the future, with the widespread application of silicon carbide technology, the United States is expected to continue to maintain its leading position in this emerging field and make greater contributions to global scientific and technological progress.
