bosch secures $225 million deal under US CHIPS act
Washington D.C., Wednesday, 18 December 2024.
The US Department of Commerce announced a preliminary agreement to provide Bosch with up to $225 million under the CHIPS and Science Act. This funding supports Bosch’s $1.9 billion investment to transform its Roseville, California facility for silicon carbide (SiC) power semiconductor production. SiC chips are vital for electric vehicles, telecommunications, and defense due to their energy efficiency. The project aligns with efforts to mitigate supply chain disruptions and enhance US semiconductor capabilities. Bosch plans to begin SiC chip production by 2026, potentially contributing over 40% of US-based SiC manufacturing capacity. The initiative also supports local job creation and training, preserving most of the Roseville plant’s 250 employees. This move underscores the growing importance of domestic semiconductor manufacturing post-pandemic, as highlighted by Rep. Doris Matsui, a co-sponsor of the CHIPS law.
Market impact and investment context
The Bosch deal is part of a larger semiconductor investment surge in the US, with the CHIPS Act driving nearly $450 billion in private investments and creating over 56,000 jobs [2]. The CHIPS Program Office has awarded $33.68 billion in grants and up to $8.7 billion in loans across 27 companies and 40 projects in 21 states [2]. These investments are expected to generate over 129,000 new jobs, including 42,000 in manufacturing and 87,000 in construction [2].
Strategic facility transformation
Bosch’s investment includes a comprehensive $1.9 billion transformation of its Roseville facility [1][3]. The company will receive up to $225 million in direct funding and approximately $350 million in proposed government loans [1]. The facility will produce chips on 200-millimeter wafers starting in 2026, performing both front-end manufacturing and back-end testing processes [3]. This expansion positions Bosch to capture a significant share of the growing SiC market.
Supply chain resilience initiatives
The investment addresses critical supply chain vulnerabilities in the US semiconductor sector [4]. The Department of Defense is actively supporting research initiatives, including a recent $3 million grant to Cornell University’s Brooks Tech Policy Institute, to enhance semiconductor supply chain resilience [5]. This coordinated approach between government, industry, and academia aims to strengthen domestic semiconductor capabilities and reduce reliance on foreign production [4].