Bosch has agreed to a preliminary deal with the U.S. Department of Commerce for up to $225 million in subsidies to make silicon carbide power semiconductors in California, boosting the efficiency of electric vehicles.
German automotive supplier Bosch has agreed preliminary with the U.S. Department of Commerce to accept up to $225 million in subsidies for the production of silicon carbide (SiC) power semiconductors at its Roseville, California, facility. The investment is part of a larger $1.9 billion initiative by Bosch to transform the Roseville site into a hub for SiC semiconductor manufacturing, a technology that will play a critical role in increasing the efficiency of electric vehicles.
In addition to these subsidies, the Commerce Department has offered about $350 million in government loans to fund the venture. These are among the various financial incentives taken from the $52.7 billion reserve established by the CHIPS and Science Act of 2022 to bolster production and research of semiconductors in the U.S.
Acquiring the prime assets of TSI Semiconductors in 2023, Bosch sets a platform for expansion. The company intends to start chip production on 200-millimeter wafers in the Roseville facility by 2026. Fully operational, the plant will represent over 40% of U.S.-based SiC device manufacturing capacity and thus heavily contribute to the domestic supply chain of semiconductors.
SiC chips are integral parts in many industries ranging from the automotive, telecommunications, and defense fields because of their power efficiency, which can optimize the performance of electric cars. This support by the U.S. government through Bosch is a commitment toward clean energy technologies and repositioning the nation towards semiconductor manufacturing.
The pact follows a similar arrangement last October, in which the Commerce Department agreed to preliminary terms with Wolfspeed for $750 million in grants to begin setting up a silicon-carbide wafer factory in North Carolina. That move is part of an even bigger strategy to reduce dependence on overseas semiconductor suppliers and ensure its own supply chains.
