- The $225 million CHIPS Act award backs a $2 billion conversion of Bosch’s California plant into its first U.S. chip manufacturing site
- The facility will produce silicon carbide semiconductors
- Roseville is set to become Bosch’s largest silicon carbide site worldwide
The Department of Commerce’s CHIPS Program Office has finalized a direct funding agreement with Robert Bosch Semiconductor, providing up to $225 million in incentives under the CHIPS and Science Act. The department announced the signing Monday.
The federal money backs a $2 billion Bosch project converting its Roseville, California, plant into a silicon carbide, or SiC, semiconductor production site — the company’s first chip manufacturing location in the United States. Bosch has started sample production at the facility and expects commercial output to begin this year. Alongside the award, the company plans to put $7.5 billion into its U.S. operations over the next five years.
Bill Frauenhofer, executive director for semiconductor innovation and investment at Commerce, said silicon carbide enables electrification in energy, automotive and defense applications, and that the incentive supports onshoring the technology to strengthen U.S. supply chain resiliency.
Why Do Silicon Carbide Semiconductors Matter for US Supply Chains?
Silicon carbide is a wide bandgap technology capable of handling high voltages, high temperatures and fast switching with smaller components than conventional chips. The material feeds the automotive, industrial, energy and consumer appliance sectors. Commerce said the funding will accelerate the development of new cleanroom space and an advanced manufacturing line in Roseville, which will become Bosch’s largest silicon carbide site worldwide.
What Is Bosch’s Position in the SiC Chip Market?
Robert Bosch Semiconductor is a subsidiary of German engineering giant Robert Bosch GmbH, a major tier 1 automotive supplier. Bosch has produced and delivered more than 60 million silicon carbide chips globally since its first generation entered production in 2021.
