According to Reuters, the U.S. Department of Commerce has reached a preliminary agreement with German automotive supplier Bosch. The Department of Commerce will provide up to $225 million in subsidies to support Bosch's production of silicon carbide power semiconductors, which are essential for electric vehicles, in California.
The Department of Commerce stated that Bosch plans to invest $1.9 billion to refurbish its manufacturing facility in Roseville, California, for silicon carbide power semiconductor production. The $225 million subsidy will support this initiative, alongside a proposed U.S. government loan of approximately $350 million.
Bosch expects to begin producing the first chips based on 200-mm wafers at the Roseville facility by 2026. Paul Thomas, President of Bosch North America, commented, "The investment in the Roseville facility allows Bosch to produce silicon carbide semiconductors locally in the U.S., supporting the electrification transformation of the American automotive industry."
Silicon carbide chips are critical components for the automotive, telecommunications, and defense industries. The U.S. Department of Commerce noted that these chips consume less energy, making them vital for improving the driving and charging efficiency of electric vehicles. Additionally, the Department of Commerce estimates that when Bosch's Roseville facility reaches full capacity, it could account for over 40% of the U.S. silicon carbide chip production capacity.
California Democratic Representative Doris Matsui, who helped draft the 2022 CHIPS and Science Act, stated that the U.S. government funding will enable Bosch to manufacture "key components driving clean transportation, electric vehicles, and other clean energy technologies."
In 2023, Bosch acquired key assets of California-based TSI Semiconductors, noting that its silicon carbide chip production would heavily depend on funding opportunities from the U.S. federal government.
The U.S. Department of Commerce is currently utilizing a $52.7 billion fund to subsidize semiconductor manufacturing and research projects approved under the 2022 CHIPS Act. Officials are working to finalize the terms of major loan programs before the next U.S. presidential inauguration.
In October, the Department of Commerce announced a preliminary agreement with Wolfspeed, granting $750 million for a new silicon carbide wafer manufacturing facility in North Carolina.
