Why Bosch Is Buying TSI Semiconductors For $1.5 Billion

By Amit Chowdhry ● Apr 27, 2023

Bosch – which has plans to expand its semiconductor business with silicon carbide chips – announced plans to acquire assets of the U.S. chipmaker TSI Semiconductors, based in Roseville, California. With a workforce of 250, the company is a foundry for application-specific integrated circuits (ASICs).

Currently, TSI Semiconductors mainly develops and produces large volumes of chips on 200-millimeter silicon wafers for applications in the mobility, telecommunications, energy, and life sciences industries. And over the next few years, Bosch plans to invest over $1.5 billion in the Roseville site and convert the TSI Semiconductors manufacturing facilities to state-of-the-art processes. Starting in 2026, the first chips are going to be produced on 200-millimeter wafers based on the innovative material silicon carbide (SiC).

Bosch is essentially reinforcing its semiconductor business and will have significantly extended its global portfolio of SiC chips by the end of 2030. The full scope of the planned investment will be dependent on federal funding opportunities available via the CHIPS and Science Act as well as economic development opportunities within the State of California. And Bosch and TSI Semiconductors have reached an agreement not to disclose any financial details of the transaction, which is subject to regulatory approval.

The demand for chips in the automotive industry remains high. And by 2025, Bosch expects to have an average of 25 of its chips integrated into every new vehicle. And the market for SiC chips is also continuing to grow fast – by 30% a year on average.

The main drivers of this growth are the global boom and ramp-up of electromobility. For electric vehicles, SiC chips enable greater range and more efficient recharging, as they use up to 50% less energy. Installed in these vehicles’ power electronics, they ensure that a vehicle can drive a significantly longer distance on one battery charge – on average, the possible range is 6% greater than with silicon-based chips.

Bosch recognized the potential of semiconductors early on and has been producing semiconductors for more than 60 years. And Bosch is one of the few companies to have not only electronic and software expertise but also a profound understanding of microelectronics.

The company can combine this decisive competitive advantage with its strength in semiconductor manufacturing. And the supplier of technology and services has been manufacturing semiconductors in Reutlingen since 1970. They are used both in the automotive sphere and in consumer electronics. Modern electronics in vehicles are also the basis for reducing traffic emissions, preventing road accidents, and efficient powertrains. The production at the Bosch wafer fab in Dresden (300-millimeter wafers) started in July 2021. At nearly one billion euros, the wafer fab is the biggest single investment in the company’s history.

In the wafer fabs in Reutlingen and Dresden, Bosch has invested more than 2.5 billion euros in total since 200-millimeter technology was introduced in 2010. And on top of this, billions of euros have been invested in developing microelectronics. Independently of the investment now planned in the US, the company announced in the summer of last year that it will be investing a further 3 billion euros in its semiconductor business in Europe, both as part of its investment planning and with the aid of the EU’s “Important Project of Common European Interest on Microelectronics and Communication Technologies” program.


“With the acquisition of TSI Semiconductors, we are establishing manufacturing capacity for SiC chips in an important sales market while also increasing our semiconductor manufacturing, globally. The existing clean-room facilities and expert personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale.”

  • Dr. Stefan Hartung, the chairman of the Bosch board of management

“The location in Roseville has existed since 1984. Over nearly 40 years, the U.S. company has built up vast expertise in semiconductor production. We will now be integrating this expertise into the Bosch semiconductor manufacturing network.”

“SiC chips are a key component for electrified mobility. By extending our semiconductor operations internationally, we are strengthening our local presence in an important electric vehicle market.”

  • Dr. Markus Heyn, member of the Bosch board of management and chairman of the Mobility Solutions business sector

“We are pleased to join a globally operating technology company with extensive semiconductor expertise. We are confident that our Roseville location will be a significant addition to Bosch’s SiC chipmaking operations.”

  • Oded Tal, CEO at TSI Semiconductors