Bosch receives $225 million in US funding and launches chip sample production in California

Roseville site as first US chip factory

A good three years after purchasing the plant from TSI Semiconductors in August 2023, Bosch has now produced initial samples of silicon carbide chips in Roseville. The plant is Bosch's first chip manufacturing facility in the USA. Series production is planned for later this year. According to the company, the site currently employs more than 300 people.

Overall, the company from Gerlingen near Stuttgart is investing up to two billion dollars in the site. By 2031, the group plans to invest up to $7.5 billion in its locations there. In 2031, the Swabians will celebrate their 125th anniversary in the United States.

This type of semiconductor is considered a key technology, including for electric cars. They enable greater range and more efficient charging, as significantly less energy is lost through them. The chips can also improve the efficiency of data centers, among other things.

Billions in investment and anniversary

Since launching its first chip generation in 2021, Bosch has delivered more than 60 million silicon carbide chips to its customers worldwide, according to the company. According to the company, demand for the high-performance semiconductors is rising primarily with the ramp-up of electromobility.

In Germany, Bosch operates two semiconductor plants, in Dresden and Reutlingen. Of these two German factories, however, only the Reutlingen site manufactures silicon carbide chips. With the California plant, the group is significantly expanding its capacity for this technology outside Europe.

Political context of the US funding

The funding comes as part of the political efforts of the US government under Donald Trump to concentrate semiconductor production more strongly on domestic soil. Industry observers see the move as an important signal to one of the world's largest automotive suppliers, which is also considered the world's largest automotive supplier.

With the start of series production in Roseville, Bosch aims to shorten its supply chains for North American customers and become less dependent on Asian manufacturing capacities. The company sees this as a decisive competitive advantage in the booming market for power semiconductors.