Bosch has finalized an agreement with the U.S. Department of Commerce for up to $225 million in direct funding to support its semiconductor manufacturing expansion in Roseville, California. The federal funding is part of Bosch’s planned investment of up to $2 billion to transform the facility for silicon carbide semiconductor production.
Bosch has started sample production at the Roseville site and intends to begin commercial manufacturing during 2026. The company plans to produce silicon carbide chips on 200-millimeter wafers using its proprietary manufacturing technology.
The Roseville facility has more than 40 years of semiconductor manufacturing experience. Bosch acquired the existing wafer fabrication assets in August 2023 and has since developed a new cleanroom and advanced production line while retaining the site’s existing employees.
Silicon carbide semiconductors can operate efficiently at high voltages, temperatures and switching speeds. These characteristics make the chips well suited for electric vehicles, industrial power systems and other applications requiring efficient power conversion.
In battery-electric and plug-in hybrid vehicles, silicon carbide chips can help improve driving range and charging efficiency. Bosch recently introduced a third generation of the technology that the company says provides up to 20% higher performance while using smaller components.
Bosch plans to manufacture the third-generation chips in Roseville in the future. The company has delivered more than 60 million silicon carbide chips worldwide since beginning production of its first generation in 2021.
The chips also have potential applications in data centers supporting artificial intelligence workloads. Silicon carbide can enable higher-efficiency power conversion with less heat and smaller components, potentially reducing energy consumption and cooling requirements.
The Roseville development will establish Bosch’s first semiconductor production site in the United States. It is one of approximately 20 Bosch manufacturing facilities in the country, where the company employs around 10,000 manufacturing workers.
Bosch said domestic production will improve supply-chain resilience and give U.S. automotive and industrial customers greater access to locally manufactured power semiconductors. The company is accelerating its time to market by using Roseville’s existing infrastructure and experienced semiconductor workforce.
The Roseville operation currently employs more than 300 people, with potential for additional hiring as demand develops. The site has also received a $25 million California Competes Tax Credit to support its redevelopment and expansion.
Bosch plans to invest more than $100,000 annually in the Roseville community beginning in 2026 through the Bosch Community Fund. Since 2024, the fund has awarded $200,000 to local schools and nonprofit organizations supporting science, technology, engineering and mathematics education.
The company has also provided funding for technical education programs at Sierra College. These investments are intended to develop a regional workforce capable of supporting semiconductor production and other advanced manufacturing industries.
The Roseville project forms part of Bosch’s broader plan to invest as much as $7.5 billion across its U.S. operations through 2031. Bosch is seeking to increase the proportion of its global business represented by North America as it approaches its 125th anniversary in the United States.
The funding agreement supports the U.S. government’s efforts to expand domestic semiconductor production and reduce reliance on foreign supply chains. Bosch expects its Roseville facility to provide locally produced chips for automotive, energy, industrial and potentially defense applications.
KEY QUOTES:
“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. The production of silicon carbide chips in the United States helps to support supply chain resiliency and capitalizes on the expertise of U.S. manufacturing associates to bring this technology to the U.S. market in a timely manner.”
“We are focused on growth and investment in the United States in order to increase the share of our global portfolio that is represented by North America and the U.S. specifically. The Roseville investment is a key milestone in our 120 years in the U.S., and we are appreciative of the support of the Administration as we look to accelerate our growth here.”
Paul Thomas, President and CEO of Bosch in North America
“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.”
Howard Lutnick, U.S. Secretary of Commerce
“Silicon carbide semiconductors are the enabling technology behind the electrification in multiple critical industries including energy, automotive, and defense. The CHIPS Program incentive supports Bosch’s effort to onshore silicon carbide technology that will bolster supply chain resiliency for our country.”
Bill Frauenhofer, Executive Director for Semiconductor Innovation and Investment at the U.S. Department of Commerce
