Bosch is investing up to US$2 billion to transform its Roseville, California facility into a 200mm silicon carbide chip manufacturing and testing site.
German automotive supplier Bosch has secured up to US$225 million in direct funding from the US department of commerce’s CHIPS program office to support the transformation of its semiconductor facility in Roseville, California.
The funding will support Bosch’s planned investment of up to US$2 billion to convert the facility into a manufacturing and testing site for silicon carbide (SiC) semiconductors. Bosch acquired the Roseville plant, formerly operated by silicon-based ASIC foundry TSI Semiconductors, in August 2023.
The facility has nearly four decades of experience in semiconductor manufacturing for automotive and industrial applications. Bosch is now leveraging this expertise to establish domestic SiC chip production in the US.
The agreement follows a preliminary memorandum of terms signed in December 2024. The project has also received a US$25 million California competes tax credit from the governor’s office of business and economic development.
Bosch has begun sample production at the Roseville site and plans to manufacture its first commercial SiC chips on 200mm wafers in 2026 using its proprietary technology. The company is developing new cleanroom infrastructure and installing advanced manufacturing equipment to support the production line.
The investment is aimed at meeting demand for locally manufactured semiconductor components while strengthening supply chain resilience in the US. SiC semiconductors are increasingly used in electric vehicles, energy systems, industrial applications, and defence due to their ability to improve power efficiency and performance.
The Roseville facility is Bosch’s first semiconductor production site in the US and currently employs more than 300 people. The company said the workforce could expand as market demand grows.
The project forms part of Bosch’s broader US investment strategy. The company plans to invest up to US$7.5 billion across its American operations over the next five years as it approaches 125 years of operations in the country in 2031.
Bosch also plans to invest in semiconductor talent and STEM education in the Roseville region. From 2026, it expects to contribute more than US$100,000 annually to the local community through its Bosch Community Fund.
