Bosch signs agreement for up to $225 million in CHIPS Act funding

Bosch is a recent (first) recipient of CHIPS and Science Act funding. The company signed a non-binding agreement with the US Department of Commerce and could receive up to $225 million.

Lest you think Amazon’s heinous crime solver somehow got a piece of the action, Bosch is also a German multinational that makes… just about everything under the sun. (That even includes a machine that emits a bad smell!) The company recently accelerated its silicon development, buying TSI Semiconductors in 2023 and finalized the deal earlier this year. But instead of focusing on high-end silicon for computers, phones and AI, Bosch is focusing more on chips for the automotive industry.

The company plans to use the funds for the Roseville, CA facility it acquired in the TSI deal. The company will invest up to $1.9 billion to convert the plant into one that spits out silicon carbide (SiC) semiconductors, which are used to increase the efficiency of EV driving and charging. Bosch expects the first 200mm wafers to roll off the line there in 2026.

“The investment in Roseville enables Bosch to locally manufacture silicon carbide semiconductors, supporting US consumers on the path to electrification,” Paul Thomas, president of Bosch North America and Bosch Mobility Americas, wrote in a statement.

In addition to promoting America’s importance in the chip industry, another goal of the CHIPS Act is to create jobs. The White House says the proposed funding will create up to 1,700 jobs, including 1,000 in construction and 700 in manufacturing, engineering and R&D.

“Today’s agreement encourages nearly $2 billion in private investment and the creation of more than 1,700 jobs, while investing in critical technologies that our defense and automotive industries rely on,” wrote Natalie Quillian, White House Deputy Chief of Staff.

In November, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip manufacturer, became the first to finalize its CHIPS Act grants (totaling $6.6 billion). Other recipients include Intel (although its funding has recently been cut), HP, Samsung, GlobalFoundries, Texas Instruments and Rocket Lab.