Bosch signs agreement for up to $225 million in CHIPS Act funding

Bosch signs agreement for up to $225 million in CHIPS Act funding

Will Shanklin

Bosch is the latest recipient of (preliminary) CHIPS and Science Act funding. The company signed a non-binding agreement with the US Commerce Department and could receive up to $225 million in funding.

Lest you think Amazon’s gruff crime solver somehow got a piece of the action, Bosch is also a German multinational corporation that makes… just about everything under the sun. (That even includes a stink-removal machine!) The company recently accelerated its silicon development, buying TSI Semiconductors in 2023 and finalizing the deal early this year. But instead of focusing on cutting-edge silicon for computers, phones and AI, Bosch specializes in chips for the auto industry.

The company plans to use the funds on the Roseville, CA facility it acquired in the TSI deal. The company will invest up to $1.9 billion to convert the plant into one that spits out silicon carbide (SiC) semiconductors, which are used to boost the efficiency of EV driving and charging. Bosch expects the first 200mm wafers to come off the line there in 2026.

“The Roseville investment enables Bosch to locally produce silicon carbide semiconductors, supporting US consumers on the path to electrification,” Paul Thomas, president of Bosch in North America and Bosch Mobility Americas, wrote in a statement.

Overhead view of Bosch’s Roseville, CA chip plant.

Bosch’s Roseville, CA silicon plant (Bosch)

In addition to boosting America’s primacy in the chip industry, the CHIPS Act’s other goal is job creation. The White House says the proposed funding would create up to 1,700 jobs, including 1,000 in construction and 700 in manufacturing, engineering and R&D.

“Today’s agreement catalyzes nearly $2 billion of private investment and the creation of over 1,700 jobs, while investing in a critical technology relied upon on by our defense and auto industry,” wrote Natalie Quillian, the White House Deputy Chief of Staff.

In November, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading advanced chip maker, was the first to have its CHIPS Act grants (to the tune of $6.6 billion) finalized. Other recipients include Intel (although its funding was recently cut), HP, Samsung, GlobalFoundries, Texas Instruments and Rocket Lab.

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