Bosch Announces Giant Step for Chip Manufacturing

Chips are among the most important needs for future technologies. Companies that know this opportunity continue to make investments in this direction. Bosch, one of Germany's leading companies, has made a giant investment in the United States.

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German Giant Bosch Bought Chip Factory in America

The German Bosch Group has signed a new deal to take advantage of the large incentives offered by the US government and the Inflation Reduction Act. Bosch announced the acquisition of TSI Semiconductors of California. Bosch will take over all TSI assets and invest another $1.5 billion to expand production of silicon carbide chips used in electric vehicles. The factory in Roseville will be completely reorganized and new semiconductors will start rolling off the production lines in 2026.

Bosch did not disclose the price it paid for the TSI. However, the company confirmed that any future investment will depend on federal funding. The company will seek to take advantage of the CHIPS and Science Act signed by President Biden in August last year. The law provides $280 billion for domestic research and semiconductor manufacturing. OEM (Original Equipment Manufacturer. In Turkish, it means Original Product Manufacturer.) Bosch, a manufacturing giant, already has two semiconductor factories in Germany. The company, along with all other semiconductor manufacturers, has been hit hard by COVID restrictions. It has also had major knock-on effects on the entire automotive industry.

Electric cars increasingly rely on silicon carbide semiconductors. It helps EVs improve their range and speed up charging times, while being much more energy efficient. Demand is growing by 30 percent every year. Bosch is not the first company to invest heavily in EV-specific chips. Wolfspeed, another US company, is building two new factories, one in New York and one in Germany. Another investor, Onsemi Corporation, has signed a strategic agreement with VW Group to become a supplier of silicon carbide semiconductors. The first silicon carbide chips will be produced on 200 mm disks in a dedicated 10,000 square meter clean room.