Bosch Buys US Semiconductor Foundry To Expand

The Bosch Group of Germany has made a purchase agreement for significant assets of TSI Semiconductors, a California-based chip manufacturer. Additionally, they will be investing $1.5 billion to increase production of silicon carbide chips for electric vehicles in the United States.

Bosch and TSI did not reveal the amount paid for the purchase. Bosch has announced its intention to spend $1.5 billion on the reconfiguration of TSI’s chip production facilities in Roseville, California, with the aim of producing silicon carbide chips by 2026.

According to a statement by Bosch, the investment will rely significantly on federal funding opportunities provided by the CHIPS act, as well as state subsidies.

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According to Bosch, the TSI facility will be considered as the “third pillar” of the company’s semiconductor production, alongside two locations in Germany.

Bosch, along with other automotive manufacturers, experienced significant disruptions to semiconductor production in Asia in the past two years due to the COVID-19 pandemic. Although the shortages have improved, they still persist. As a result, Bosch’s automaker clients are seeking more secure and diverse chip sources.

Bosch plans to produce silicon carbide chips at the TSI Roseville site, which are highly sought after by electric vehicle manufacturers. These chips are made of silicon carbide chemistry, providing benefits like increased driving range and faster recharging.