Bosch has begun sample production at its $2 billion semiconductor facility in Roseville, California, marking a major milestone in the company’s effort to establish domestic silicon carbide chip manufacturing as demand grows across the automotive, energy and data center sectors.
The German technology and automotive supplier announced that it has reached a definitive agreement with the U.S. Department of Commerce for up to $225 million in funding through the CHIPS Program Office to support the transformation of the former wafer fabrication plant. Bosch expects to begin commercial production in 2026, just three years after acquiring the site.
Located northeast of Sacramento, the Roseville facility is being converted into Bosch’s first semiconductor manufacturing operation in the United States. The company said the project includes new cleanroom space and advanced production lines designed to manufacture silicon carbide semiconductors on 200-millimeter wafers.
Bosch accelerates Roseville transformation
Bosch is investing up to $2 billion in the redevelopment, while the federal funding package aims to strengthen domestic semiconductor production and reduce reliance on overseas supply chains.
“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,” Paul Thomas, president and CEO of Bosch in North America, said in a statement.
As part of the expansion, Bosch has developed new cleanroom space and high-tech manufacturing lines at the Roseville campus. The company acquired the assets of the existing wafer fabrication plant in 2023 and has since modernized the facility while retaining employees and expanding workforce training programs.
The Roseville site represents Bosch’s first semiconductor production facility in the United States and also one of 20 manufacturing operations the company maintains nationwide. Bosch currently employs around 10,000 people across the country, including more than 300 associates at the California site.
Silicon carbide chips target automotive, energy and AI markets
Silicon carbide semiconductors have become increasingly important for electric vehicles because they can withstand higher voltages and temperatures while improving battery range and charging performance. Bosch said the technology is also expected to play a growing role in industrial energy applications and data centers, where more efficient power conversion can help reduce cooling demands created by artificial intelligence workloads.
“Silicon carbide semiconductors are the enabling technology behind the electrification in multiple critical industries including energy, automotive, and defense. The CHIPS Program incentive supports Bosch’s effort to onshore silicon carbide technology that will bolster supply chain resiliency for our country,” said Bill Frauenhofer, executive director for semiconductor innovation and investment at the Department of Commerce.
Bosch noted that it plans to manufacture its third-generation silicon carbide chips in Roseville. According to the company, the latest generation delivers up to 20 percent higher performance while reducing the size of the components. Bosch has already shipped more than 60 million silicon carbide chips worldwide since launching the technology in 2021.
Part of a broader U.S. investment strategy
The Roseville project forms part of Bosch’s broader push to expand its American manufacturing footprint. The company plans to invest up to $7.5 billion across its U.S. operations by 2031 as it approaches the 125th anniversary of its presence in the country.
In addition to federal support, the project has secured a $25 million California Competes tax credit from the Governor’s Office of Business and Economic Development to help fund the redevelopment. Bosch also announced plans to invest more than $100,000 annually in community initiatives in Roseville beginning in 2026 through the Bosch Community Fund, with a focus on science, technology, engineering and mathematics education.
Bosch’s Roseville redevelopment joins a growing pipeline of federally supported semiconductor projects across the United States. Last month, Coherent broke ground on its $650 million AI semiconductor facility expansion in Texas, adding to the wave of large-scale manufacturing investments reshaping the country’s chip supply chain.
Factsheet: Bosch Roseville Silicon Carbide Semiconductor Facility
Location: Roseville, California
Developer: Bosch
Project value: Up to $2 billion
Federal support: Up to $225 million through the U.S. Department of Commerce’s CHIPS Program Office
State incentives: $25 million California Competes tax credit
Facility focus: Production and testing of silicon carbide semiconductors
Commercial production target: 2026
Bosch acquisition of site: 2023
U.S. workforce: Approximately 10,000 employees
Roseville workforce: More than 300 employees
Planned U.S. investment through 2031: Up to $7.5 billion
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