CHIPS Act Awards Bosch $225M for Roseville Semiconductor Plant

Bosch, a German based engineering company has benefited from CHIPS Act which provided the company with up to $225 million of direct funding towards the development of a semiconductor manufacturing plant in Roseville, the facility is now valued at $1. 9 billion. The company is upgrading its current plant to make state-of-the-art silicon carbide semiconductors for EVs and charging systems and plans to start supplying chips to the market in 2026.

The investment reflects the strategy of the Biden administration to rebuild the domestic semiconductor manufacturing industry. Instead of constructing a new semiconductor plant from the ground, Bosch is refurbishing an old plant that was built in 1984. Bosch retained nearly all 250 employees from TSI Semiconductors and trained them using expertise from the company’s global manufacturing network.

CHIPS Act

Rep. Doris Matsui pointed out the impact of CHIPS Act, the law which she called as a critical tool to build a strong and sustainable semiconductor ecosystem. Paul Thomas, the CEO of Bosch in North America said that the domestic production of silicon carbide semiconductors will help U. S consumers in their journey toward electrification, and this Bosch’s plant in Roseville is right move toward this goals.

Thorsten Scheer, the plant manager pointed out that the company opted to expand an existing wafer fabrication facility rather than construct a new one. He pointed out the talented Roseville workforce as one of the reasons for this approach, saying that the workforce was skilled and committed during the transformation of the site.

In April 2023, Bosch announced its initial investment. Stefan Hartung, the chairman of the board of management, emphasized that the company would build the factory with or without CHIPS Act funding. Bosch originally committed $1.5 billion to the project. The Department of Commerce now reports the total investment has grown to $1.9 billion, according to their recent press release.

Construction of the plant is being done under the project labor agreement signed with the Sacramento-Sierra Building and Construction Trades Council. It aims at producing the first chips in Roseville on 200-millimeter wafers by 2026, which is a big step in Bosch’s semiconductor manufacturing strategy in the United States.

Bosch Semiconductor Manufacturing Plant in Roseville: Project Factsheet

Project Overview

Location: Roseville, California

Total Investment: $1.9 billion

CHIPS Act Funding: Up to $225 million

Expected First Production: 2026

Project Specifications

Facility Type: Renovated semiconductor manufacturing plant

Chip Type: Silicon carbide chips

Wafer Size: 200-millimeter

Primary Applications: Electric vehicles, charging systems, power electronics

Key Stakeholders

Company: Bosch (Stuttgart, Germany)

Local Workforce: 250 retained employees

Construction Partner: Sacramento-Sierra’s Building and Construction Trades Council

Bosch Roseville semiconductor manufacturing plant: Milestones

April 2023: Initial investment announcement

2024: Ongoing facility renovation

2026: Projected first chip production

CHIPS Act funding for Bosch Roseville plant: Strategic Objectives

Strengthen U.S. domestic semiconductor manufacturing

Support electrification of transportation

Develop local high-tech manufacturing capabilities

Economic Impact

Job retention and advanced training

Local infrastructure investment

Support for U.S. technology supply chain

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