Bosch Signs CHIPS and Science Act Funding Agreement to Boost US Semiconductor Production
Bosch has become the most recent firm to secure preliminary funding under the CHIPS and Science Act. The German multinational has entered into a non-binding arrangement with the US Commerce Department that may allow it to receive funding totaling as much as $225 million.
To clarify, Bosch in this context refers not to your favorite Amazon crime-solver but rather one of Germany’s largest corporations, renowned for producing a diverse range of products—including an innovative device for odor removal. In 2023, Bosch amplified its focus on semiconductor technology by acquiring TSI Semiconductors, officially wrapping up the agreement early this year. While many tech firms prioritize advanced microchips for gadgets like computers and smartphones, Bosch dedicates its expertise primarily to automotive semiconductors.
Investment Plans for Silicon Carbide Manufacturing
The funds obtained through this agreement will be allocated toward enhancing Bosch’s recently acquired facility in Roseville, California. The company aims to channel an impressive investment of up to $1.9 billion to transform this plant into a production facility specializing in silicon carbide (SiC) semiconductors—critical components aimed at improving electric vehicle (EV) efficiency during both driving and charging processes. It is anticipated that the first production run of 200mm wafers will begin rolling off the assembly line by 2026.
According to Paul Thomas, President of Bosch North America and Bosch Mobility Americas, “The investment in Roseville facilitates local silicon carbide semiconductor manufacturing while supporting American consumers as they transition towards electrification.”
Boosting Jobs Through Strategic Investment
A significant aim of the CHIPS Act extends beyond bolstering America’s competitiveness within the semiconductor sphere; it also emphasizes job creation. As noted by White House officials, proposed funding from this initiative could generate approximately 1,700 jobs—comprising around 1,000 positions related specifically to construction activities and another 700 spanning areas such as manufacturing engineering and research & development.
Natalie Quillian, Deputy Chief of Staff at the White House remarked on how “Today’s agreement triggers nearly $2 billion worth of private sector investments along with over 1,700 job opportunities while strengthening vital technologies essential for our defense capabilities and auto sector.”
The Growing Landscape: Other Recipients Under CHIPS Initiatives
Taiwan Semiconductor Manufacturing Company (TSMC), recognized globally as a leader among advanced chip manufacturers was among those who received concrete grants from the CHIPS initiative last November amounting up to $6.6 billion—the first large-scale approval under these new guidelines. Other companies benefiting from similar funding include Intel (despite facing recent reductions), HP Inc., Samsung Electronics Co., GlobalFoundries Inc., Texas Instruments Incorporated along with Rocket Lab Limited.