Engineering and technology company, Bosch announced Wednesday that the German company has acquired California chip manufacturer TSI Semiconductors, establishing a foothold in the U.S. manufacturing market for silicon carbide chips.
Bosch announced in April its intention to acquire crucial assets from TSI's chip production facilities. Additionally, Bosch revealed a $1.5 billion investment aimed at renovating the Roseville, California site for the purpose of manufacturing silicon carbide chips used in electric vehicles. Production at the newly established entity, named Robert Bosch Semiconductor LLC, is scheduled to begin in 2026.
"By extending our semiconductor operations, we are strengthening our local presence in an important market for high efficiency electronic solutions," said incoming president of Americas for Bosch Mobility, Paul Thomas.
Bosch stated that the investment "will be heavily dependent on federal funding opportunities" facilitated by the CHIPS act, along with state-level subsidies.
The silicon carbide chips that Bosch has committed to producing at the TSI Roseville facility are experiencing rising demand from electric vehicle manufacturers. These chips, utilizing silicon carbide chemistry, offer enhanced driving range and quicker recharging capabilities, as highlighted by Bosch.
Bosch emphasized that the demand for silicon carbide semiconductors is exhibiting an annual growth rate of 30%.