Bosch Lands $225M in CHIPS Funding for California Chip Plant
Bosch—a provider of technology and services and the largest automotive supplier in the world according to external rankings—announced a definitive agreement for up to $225 million in direct funding from the Department of Commerce’s CHIPS Program Office. This will support the up to $2 billion Bosch is investing to transform its Roseville, California, site for the production of silicon carbide (SiC) semiconductors, company officials stated in a press release.
The Roseville facility, which has more than 40 years of experience in semiconductor manufacturing, is evolving into a facility that produces and tests SiC semiconductors with state-of-the-art processes and equipment. Bosch also announced it has begun sample production in Roseville as the company intends to produce its first commercial production chips on 200-millimeter wafers based on the pioneering SiC Bosch technology in 2026.
“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,” said Paul Thomas, president and CEO of Bosch in North America. “The production of silicon carbide chips in the United States helps to support supply chain resiliency and capitalizes on the expertise of U.S. manufacturing associates to bring this technology to the U.S. market in a timely manner.”
As part of its investment into U.S. manufacturing at the Roseville site, Bosch has developed a new cleanroom space and high-tech manufacturing line for production of silicon carbide chips. Bosch says that it has accelerated its time-to-market through investment into a long-standing U.S.-based manufacturing facility with highly skilled U.S.-based associates who bring specific semiconductor experience.
Bosch is investing up to $2 billion to transform the Roseville site into a facility that produces & tests SiC semiconductors.
In April 2023, Bosch announced its intention to acquire the assets of the existing wafer fab in Roseville. The acquisition was closed in August 2023, and since that time Bosch has begun to transform the site while also maintaining employment of the existing associates throughout the transformation process. Bosch invested in the further development of Roseville associates through training and collaboration with the Bosch production network.
Bosch has a long-standing commitment to the U.S. and is celebrating its 120th anniversary in the country in 2026, officials said. The company plans to invest up to $7.5 billion over the next five years across its operations in the U.S. as it heads toward its 125th anniversary of U.S. operations in 2031.
“We are focused on growth and investment in the United States in order to increase the share of our global portfolio that is represented by North America and the U.S. specifically,” Thomas said. “The Roseville investment is a key milestone in our 120 years in the U.S.”
Why Silicon Carbide Chips Matter for EV Manufacturing
Silicon carbide chips are becoming foundational in electric and next-generation mobility systems as they handle high voltages, high temperatures and fast switching more efficiently. They also enable automotive manufacturers with a technology that supports consumer choice in the market, as it helps to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles.
Recently, Bosch announced its third-generation silicon carbide chips that deliver up to 20% higher performance and are smaller than the previous generation. In the near future, Bosch plans to manufacture third-generation silicon carbide chips in Roseville. The new generation helps to enable greater cost efficiency and supports making high-performance electronics more widely available worldwide. Bosch has already delivered more than 60 million SiC chips worldwide since the first generation went into production in 2021.
In addition to mobility applications, silicon carbide also has potential uses in other business sectors, including industrial energy applications for energy consumption effectiveness in data centers. Since SiC chips enable higher-efficiency, higher-power conversion with less heat and smaller components, they’re ideal for supporting rapidly growing AI workloads while reducing energy and cooling demands.
Bosch intends to start U.S.-based commercial manufacturing in 2026, just three years after acquiring the Roseville site.
“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.
The Roseville site represents the first semiconductor production site in the United States for Bosch and is one of 20 facilities with manufacturing operations in the U.S. for Bosch across the company’s broad portfolio. Bosch employs around 10,000 associates working in manufacturing operations in the United States. The company has invested significant capital in the U.S. over the past five years, the majority of which is focused on manufacturing, the company said.
In addition, the Roseville site has also been awarded a $25 million California Competes Tax Credit incentive from the Governor’s Office of Business & Economic Development (GO-Biz) to support redevelopment and investment in Roseville.
The Bosch site in Roseville currently employs more than 300 associates, with potential to grow in the future based on market development. Along with advancing the skills of its current associates, Bosch is making local investments to strengthen future semiconductor talent in the United States.
Beginning in 2026, Bosch plans to invest more than $100,000 per year in the Roseville community through the Bosch Community Fund, the regional foundation for Bosch in North America. Since 2024, the Bosch Community Fund has invested $200,000 in grant awards to schools and nonprofits in support of science, technology, engineering and math (STEM) education initiatives, impacting nearly 1,500 students and teachers in the Roseville area.
