News: Microelectronics
16 July 2026
Bosch gains $225m US CHIPS funding for $2bn transformation of Roseville fab for SiC production
Following a non-binding preliminary memorandum of terms (PMT) signed in December 2024, Germany-based tier-1 automotive supplier Bosch has announced a definitive agreement with the Trump Administration for up to $225m in direct funding from the US Department of Commerce’s CHIPS Program Office to support the up to $2bn that Bosch is investing to transform its fabrication plant in Roseville, California — acquired as silicon-based application-specific integrated circuit (ASIC) foundry TSI Semiconductors in August 2023 — for the production and testing of silicon carbide (SiC) semiconductors. The Roseville facility has nearly 40 years of experience in the production of semiconductors for automotive and industrial applications, which it will now apply to the production of SiC chips.
In addition, the Roseville site has also been awarded a $25m California Competes Tax Credit incentive from the Governor’s Office of Business & Economic Development (GO-Biz) to support redevelopment and investment in Roseville.
Also, Bosch has begun sample production in Roseville, as it intends to produce its first commercial production chips on 200mm wafers based on Bosch’s SiC technology in 2026.
Picture: Bosch’s Roseville fab.
“The start of sample production and our agreement with the Department of Commerce is a milestone in providing our local customers with what they have requested — localized US-based manufacturing,” says Paul Thomas, president & CEO of Bosch in North America. “The production of silicon carbide chips in the United States helps to support supply chain resiliency and capitalizes on the expertise of US manufacturing associates to bring this technology to the US market in a timely manner,” he adds.
“The Trump Administration is committed to developing a secure supply chain here in the United States that will enable continued innovation and competitive leadership in industries of national and economic security importance,” says Secretary of Commerce Howard Lutnick.
As part of its investment into US manufacturing at the Roseville site, Bosch has developed a new cleanroom space and high-tech manufacturing line for production of SiC chips. Bosch says that it has accelerated its time-to-market through investment into a long-standing US-based manufacturing facility with US-based associates who bring specific semiconductor experience.
Bosch plans to invest up to $7.5bn over the next five years across its operations in the USA as it heads towards its 125th anniversary of US operations in 2031. “We are focused on growth and investment in the United States in order to increase the share of our global portfolio that is represented by North America and the US specifically,” Thomas says.
Silicon carbide essential for future mobility & efficiency
“Silicon carbide semiconductors are the enabling technology behind the electrification in multiple critical industries including energy, automotive, and defense. The CHIPS Program incentive supports Bosch’s effort to onshore silicon carbide technology that will bolster supply chain resiliency for our country,” says Bill Frauenhofer, executive director for Semiconductor Innovation and Investment at the Department of Commerce.
The Roseville site represents the first semiconductor production site in the USA for Bosch and is one of 20 facilities with manufacturing operations in the USA across the company’s broad portfolio. Bosch has about 10,000 staff in manufacturing operations in the USA.
The Roseville site has more than 300 staff, with potential to grow in the future based on market development. Bosch is making local investments to strengthen future semiconductor talent in the USA. Beginning in 2026, it plans to invest more than $100,000 per year in the Roseville community through the Bosch Community Fund (the regional foundation for Bosch in North America) which, since 2024, has invested $200,000 in grant awards to schools and non-profits in support of science, technology, engineering, and math (STEM) education initiatives, impacting nearly 1500 students and teachers in the Roseville area.
Bosch sampling third-generation SiC chips to global automakers
Bosch allocated $225m in US CHIPS Act funding, plus $350m in loans
Bosch acquiring US chipmaker TSI, adding California plant to Reutlingen and Dresden fabs in Germany
