Bosch, a global leader in semiconductor and automotive technologies, has signed a preliminary memorandum of terms (PMT) with the U.S. Department of Commerce, securing up to $225 million in proposed direct funding under the CHIPS and Science Act. This funding will support Bosch’s
$1.9 billion transformation of its Roseville, California, facility into a state-of-the-art production site for silicon carbide (SiC) semiconductors.
The CHIPS and Science Act plays a crucial role in bolstering U.S. semiconductor manufacturing. As U.S. Secretary of Commerce Gina Raimondo explained, “SiC chips are critical components for applications in the automotive, telecommunications, and defense industries because they utilize less energy. With this proposed investment, we are taking another important step in securing our supply chains while creating over a thousand anticipated jobs in the process.”
From Acquisition to Transformation
In April 2023, Bosch announced plans to acquire an existing wafer fab in Roseville. The acquisition was finalized in August 2023, marking the first step in Bosch’s strategy to transform the facility. The site will produce SiC chips using Bosch’s proprietary technology, with production slated to begin in 2026 on 200-millimeter wafers.
“We took the unique approach to transform an existing wafer fab rather than build a new facility,” said Thorsten Scheer, plant manager in Roseville and regional president of Bosch Mobility Electronics in North America. “A major reason was the talented workforce in place at Roseville. Already they have shown their skill and resolve as we transform the site for future production of silicon carbide chips.”
The Roseville site, with nearly 40 years of experience in semiconductor manufacturing, currently employs approximately 250 associates. Bosch has retained nearly all employees during the transformation process, providing advanced training and integrating them into the company’s global manufacturing network.
Supporting Local Workforce Development
Beyond training its existing workforce, Bosch is actively investing in the local community to build semiconductor expertise. The Bosch Community Fund awarded a $100,000 grant to Sierra College Foundation in Rocklin, California, to support STEM education and career technical training. This funding helps cover certification fees, tools, project supplies, and costs associated with STEM competitions and clubs.
Leveraging CHIPS Act Incentives
The CHIPS Act’s proposed $225 million funding is just one component of Bosch’s financial strategy for the Roseville facility. The company plans to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which covers 25% of qualified capital expenditures. Additionally, the CHIPS Program Office has proposed approximately $350 million in loans for Bosch as part of the Act’s $75 billion loan authority.
The California Governor’s Office of Business & Economic Development (GO-Biz) has also awarded Bosch a $25 million California Competes Tax Credit to support the site’s redevelopment.
Strengthening U.S. Semiconductor Leadership
The Roseville facility will be Bosch’s first semiconductor production site in the United States, cementing the company’s role in the nation’s semiconductor ecosystem. By producing energy-efficient SiC chips domestically, Bosch aims to support the growing demand for high-performance semiconductors in electric vehicles, industrial systems, and consumer electronics.
“Production of SiC chips in the United States is a key part of our strategic plan to reinforce our semiconductor portfolio and support our local customers,” said Michael Budde, president of Mobility Electronics for Bosch. “Silicon carbide chips help to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles to provide affordable electromobility options for consumers.”
A Path Forward for the U.S. Semiconductor Industry
As part of the CHIPS Act funding process, Bosch’s proposed incentives are contingent upon due diligence, negotiated milestones, and comprehensive reviews by the Department of Commerce. The PMT marks an important milestone, enabling Bosch to move forward in refining terms and ensuring the project’s success.
With its Roseville transformation underway and support from the CHIPS Act, Bosch is poised to strengthen U.S. semiconductor manufacturing, enhance supply chain resilience, and create a foundation for long-term technological innovation.
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