Bosch intends to claim the federal tax credit, which allows a 25 percent reimbursement of qualified capital expenditures.
The Department of Commerce has announced that it will provide up to $225 million in funding to Bosch, a prominent automotive supplier, under the CHIPS and Science Act. Bosch is expected to use this funding to enhance its semiconductor manufacturing capabilities, particularly as automotive and industrial sectors increasingly depend on advanced chips.
This investment aligns with the CHIPS Act’s goal of strengthening U.S. supply chains, reducing reliance on foreign semiconductor production, and supporting critical industries such as automotive manufacturing. Bosch’s expansion will likely focus on producing chips essential for modern vehicles, including those for electric vehicles (EVs), ADAS (advanced driver-assistance systems), and other automotive technologies.
The recent funding, featuring an additional $350 million in loans from the CHIPS Program Office, significantly boosts Bosch’s ambitious $1.9 billion initiative to expand its Roseville, California, facility dedicated to silicon carbide semiconductor production tailored for the automotive sector. This transformative project is projected to generate up to 1,000 construction jobs alongside 700 roles in manufacturing, engineering, and research and development.
In August 2023, Bosch successfully acquired the Roseville wafer fab from TSI Semiconductors Corp., as announced in a Bosch press release. This strategic acquisition marks a pivotal step for Bosch as it aims to substantially enhance its global portfolio of SiC semiconductors by 2030. Notably, this facility will be Bosch’s inaugural semiconductor plant in the country, further strengthening the auto supplier’s international semiconductor manufacturing network and solidifying its commitment to innovation and growth in the industry.
Production at the 200-millimeter wafer facility is set to begin in 2026, with a focus on enhancing electric vehicle driving and charging efficiency. According to the Commerce Department, the facility could account for 40% of U.S.-based SiC manufacturing capacity. Located in Roseville, the facility will handle both front-end device manufacturing and back-end processes, including testing, sorting, and dicing.
