Bosch announced that it signed a preliminary memorandum of terms with the U.S. Department of Commerce to receive up to $225 million in proposed direct funding under the CHIPS and Science Act. The proposed investment would support the development of semiconductor manufacturing in the U.S.

Bosch plans to invest up to $1.9 billion to transform its site in Roseville, California, into a facility that produces and tests silicon carbide semiconductors. The Roseville site currently employs around 250 associates with potential to grow in the future. The location has already received a $25 million California Competes Tax Credit incentive from the Governor’s Office of Business & Economic Development.

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In April 2023, Bosch announced its intention to acquire the assets of an existing wafer fab in Roseville. The acquisition was closed in August 2023 and, since that time, Bosch has begun the process to transform the site. Starting in 2026, the first chips will be produced on 200-millimeter wafers based.

The Roseville location has nearly 40 years of extensive experience in the design and production of semiconductors for automotive and industrial applications.

“Silicon carbide chips help to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles to provide affordable electromobility options for consumers,” said Michael Budde, president of Mobility Electronics for Bosch.

Bosch has indicated it plans to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. In addition to the proposed direct funding of up to $225 million, the CHIPS Program Office would make approximately $350 million in proposed loans, which is a part of the $75 billion in loan authority provided by the CHIPS and Science Act, available to Bosch under the preliminary memorandum of terms.

In addition to training its current workforce, Bosch is also investing locally to help build up semiconductor expertise for the future. The Bosch Community Fund provided a $100,000 grant to the Sierra College Foundation in Rocklin, California, for its Career Technical Education Support Fund. The grant has helped to support associated costs with certification fees, microcontroller kits, development material, software, protective gear, tools, entry and travel fees for STEM competitions, project supplies for STEM Clubs and more.

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