Bosch begins sample production at first US semiconductor plant
The $2 billion reconfiguration of the former TSI Semiconductors site marks a strategic pivot to domestic silicon carbide manufacturing, with commercial output targeted for later this year.
German automotive and semiconductor manufacturer Bosch has commenced sample production at its first United States semiconductor facility in Roseville, California. The company finalised a $225 million funding agreement with the U.S. Department of Commerce to support the domestic manufacturing of silicon carbide chips, a critical component for electric vehicle power management and data centre operations.
Bosch acquired the Roseville facility from TSI Semiconductors in 2023 and has reconfigured it at a total investment cost of $2 billion, inclusive of the federal funding. Commercial production at the site is scheduled to begin later this year, marking a significant step in the company’s effort to strengthen domestic supply chains and reduce reliance on overseas suppliers in Europe and Asia.
The investment is driven by a combination of national security considerations and trade policy frameworks. Paul Thomas, president and CEO of Bosch in North America, cited the United States-Mexico-Canada Agreement (USMCA) as a key driver for the expansion, noting that automakers are seeking more developed domestic supply chains to mitigate risks associated with tariffs and geopolitical disruptions.
Silicon carbide chips produced at the facility are primarily used to manage high-voltage electricity in electric vehicles, improving efficiency and driving range by reducing heat and energy losses. Unlike chips used for vehicle infotainment or advanced driver-assistance systems, these power management components are also utilised in data centres and defence applications, aligning with broader industry trends supporting the AI boom.
U.S. Secretary of Commerce Howard Lutnick stated that the administration is committed to developing a secure domestic supply chain for industries of national and economic security importance. The funding is provided through the Commerce Department’s CHIPS Program Office, established under the 2022 CHIPS and Science Act to expand domestic semiconductor manufacturing capabilities.
Bosch announced plans to increase its total U.S. investments to up to $7.5 billion by 2031, reinforcing its commitment to the American market. The move comes as some automakers and parts suppliers expand U.S. manufacturing operations to protect against geopolitical instability, following industry-wide turmoil during the COVID-19 pandemic caused by chip shortages.
