The US government is set to provide $225 million in federal funding to aid the production of silicon carbide (SiC) chips in the country. This investment is part of a larger $2 billion commitment by Bosch to transform its wafer fab facility in Roseville, California.
Bosch acquired the Roseville facility in August 2023 and aims to start commercial manufacturing of SiC semiconductors later this year.
The $225 million direct funding agreement is part of the Department of Commerce’s CHIPS Program Office efforts to support the production of SiC chips in the US. Bosch plans to use this funding to convert its Roseville facility for the production of SiC semiconductors.
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They are investing in their employees at Roseville through training initiatives and collaboration within the Bosch production network. The company aims to produce the first commercial SiC chips on 200-millimeter wafers this year.
SiC chips are in high demand for electric vehicles, data centers, and other industrial applications. Bosch aims to be a leading global manufacturer of SiC chips for electromobility. The company’s third-generation SiC chips deliver 20% higher performance, which can increase the overall efficiency of EV powertrains.
“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.
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The CHIPS and Science Act, signed into law in August 2022, provides the Department of Commerce with $52.7 billion to strengthen and revitalize semiconductor research, development, and manufacturing in the US.
In total, Bosch intends to invest up to $7.5 billion in its US operations through 2031 to bolster domestic manufacturing of semiconductors in the US. Since the company began production of the first SiC chips in 2021, Bosch said it delivered more than 60 million to customers worldwide.
For mobility applications, SiC chips can handle higher voltages, temperature changes, and fast switching more efficiently, which helps to deliver longer range and more efficient recharging for both battery-electric and plug-in hybrid vehicles. The production of SiC chips in the US helps to support supply chain resiliency and capitalizes on the expertise of US manufacturing associates to bring this technology to the US market in a timely manner.
