Bosch has signed a definitive agreement with the U.S. Department of Commerce for up to US$225 million in direct funding through the CHIPS Program Office, supporting the company’s planned investment of up to US$2 billion to transform its Roseville, California, facility into a silicon carbide (SiC) semiconductor manufacturing hub.

The investment marks a significant step in Bosch’s strategy to expand semiconductor production in the United States and strengthen domestic supply chains for critical technologies. The Roseville site, which brings nearly four decades of semiconductor manufacturing experience, has already begun sample production and is expected to launch commercial production of Bosch-developed SiC chips on 200mm wafers in 2026.

Paul Thomas, president and CEO of Bosch in North America, said the project represents a major milestone for the company and its customers. “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.”

New Manufacturing Capabilities Support Strategic Industries

As part of the redevelopment, Bosch has established new cleanroom facilities and advanced manufacturing lines dedicated to silicon carbide semiconductor production. The company acquired the Roseville wafer fabrication facility in 2023 and has since modernized the operation while retaining the existing workforce and investing in employee training.

Silicon carbide semiconductors are increasingly important for electric vehicles and next-generation mobility solutions because they deliver higher efficiency in managing high voltages, elevated temperatures and rapid switching requirements. The technology supports longer driving ranges and faster charging capabilities in battery-electric and plug-in hybrid vehicles.

Beyond automotive applications, SiC chips are also expected to play a growing role in industrial energy systems and data centers, where improved power-conversion efficiency can help reduce energy consumption and cooling requirements while supporting expanding AI workloads.

Long-Term US Investment Strategy

The Roseville facility is Bosch’s first semiconductor production site in the United States and one of 20 manufacturing locations operated by the company nationwide. Bosch employs about 10,000 associates in U.S. manufacturing operations and plans to invest up to US$7.5 billion across its American operations over the next five years.

Secretary of Commerce Howard Lutnick emphasized the broader national importance of the initiative, stating that the administration is committed to building secure domestic supply chains that support innovation and strengthen U.S. competitiveness in strategically important industries.

The Roseville project has also received a US$25 million California Competes Tax Credit incentive. The site currently employs more than 300 associates and is positioned for future workforce growth as market demand develops.

14 July 2026