The Biden administration has finalized a deal to provide up to $225 million in direct funding to automotive supplier Bosch, backing the company’s plan to convert an existing California wafer facility into a major producer of silicon carbide semiconductors.
The investment, announced by the Department of Commerce’s CHIPS Program Office, is part of a larger $2 billion commitment by the firm to transform its Roseville, California, wafer fab for the production of SiC chips, which are in high demand for electric vehicles, data centers, and industrial applications.
It acquired the Roseville site in August 2023 and has since been retooling the facility, which has manufactured semiconductors for the past four decades. The company aims to start commercial manufacturing of SiC chips on 200-millimeter wafers later this year, while keeping its existing U.S.-based workforce with semiconductor experience in place.
A facility built for the EV era
Silicon carbide chips are increasingly critical for the automotive industry.
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For mobility applications, they can handle higher voltages, temperature changes and fast switching more efficiently than traditional silicon chips.
That translates into longer range and more efficient recharging for both battery-electric and plug-in hybrid vehicles.
In April, the firm announced its third-generation SiC chips and began supplying samples to global automakers. The company said these new chips deliver 20% higher performance, which can improve the overall efficiency of EV powertrains.
The Roseville facility has seen significant upgrades. The firm developed new cleanroom space and installed a high-tech manufacturing line specifically for SiC chip production. It also invested in training initiatives and collaboration within its global production network to support workers at the site.
The CHIPS and Science Act, signed into law in August 2022, provides the Commerce Department with $52.7 billion to strengthen semiconductor research, development and manufacturing in the U.S. The CHIPS Program Office is offering roughly $39 billion in incentives for investment in facilities and equipment, with the Roseville deal being one of the latest allocations.
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“The start of sample production and our agreement with the Department of Commerce is a milestone in providing our local customers with what they have requested — localized U.S.-based manufacturing,” said Paul Thomas, president and CEO of Bosch in North America, in a statement.
Thomas added that the firm is “focused on growth and investment in the United States in order to increase the share of our global portfolio that is represented by North America.” He said the administration’s support helps accelerate that growth.
Domestic production and supply chain resilience
“The production of silicon carbide chips in the United States helps to support supply chain resiliency and capitalizes on the expertise of U.S. manufacturing associates to bring this technology to the U.S. market in a timely manner,” Thomas said in a separate statement.
Beyond the Roseville conversion, the firm intends to invest up to $7.5 billion in its U.S. operations through 2031 to bolster domestic semiconductor manufacturing. The first commercial SiC chips from the Roseville site are expected to reach customers before the end of the year.
