Bosch has started sample production at its first semiconductor factory in the United States, the company announced, completing a $225 million agreement with the U.S. Commerce Department designed to boost domestic manufacturing of silicon carbide chips.
The Roseville, California, facility was purchased from TSI Semiconductors in 2023 and subsequently reconfigured. Bosch said the total cost of preparing the plant - including the Commerce Department funds - amounts to $2 billion. The company plans to ramp from sample production to commercial manufacturing later this year.
Paul Thomas, president and chief executive of Bosch in North America, pointed to the U.S.-Mexico-Canada Agreement on trade as one of the reasons the company expanded its investment in domestic chipmaking. "It was a really good location for us and we thought it was the right thing to do," Thomas said, citing the national security emphasis on semiconductors. He added that automakers want suppliers "that can continue to supply from a robust nature near to them."
The $225 million award comes from the Commerce Department's CHIPS Program Office, which was established under the 2022 CHIPS and Science Act to expand semiconductor manufacturing capacity in the United States and reduce dependence on foreign supply chains.
Silicon carbide chips differ from the semiconductors used for infotainment or many advanced driver-assistance features; they are primarily employed to manage high-voltage electricity. In electric vehicles, silicon carbide components help transfer power from the battery to the motor with higher efficiency, lowering heat and energy losses and improving both driving range and charging performance. Bosch also noted the chips have applications beyond the automotive sector, including powering data centers.
Thomas said some automakers and suppliers are expanding into related businesses such as energy storage system batteries to help address demand from areas like artificial intelligence, while also pointing out that applications in hybrid vehicles and defense make the investment timely despite EV sales that have lagged.
Industry disruption during the COVID-19 pandemic highlighted the sector's heavy reliance on a small group of suppliers in Europe and Asia, a vulnerability companies and governments have sought to address. The article notes that several automakers and parts suppliers have increased U.S. manufacturing under the Trump administration to mitigate tariff exposure and guard against geopolitical interruptions.
Secretary of Commerce Howard Lutnick was quoted saying, "The Trump Administration is committed to developing a secure supply chain here in the United States that will enable continued innovation and competitive leadership in industries of national and economic security importance."
Bosch also announced plans to deepen its presence in the United States with up to $7.5 billion in investments through 2031. The Roseville plant's transition from a purchased and reconfigured site into a production facility is a central element of that broader strategy.
As Bosch moves from sample production to commercial output, the industry will observe whether the plant helps diversify sources of silicon carbide chips and relieves past shortages. For now, the company has confirmed the sequence of steps and funding that brought the factory to its current operational state and set a commercial start target for later this year.
Contextual note: This report focuses on Bosch's steps to increase domestic silicon carbide chip manufacturing capacity, the funding mechanism used, and the stated strategic rationale from company and government officials. It reflects the information Bosch and the Commerce Department released about the Roseville facility, its acquisition, reconfiguration costs, and production timeline.