- Facility projected to account for over 40% of all US SiC device manufacturing capacity once fully operational by 2026.
The announcement from the US Commerce Department regarding a preliminary agreement with German auto supplier Bosch signifies a pivotal moment in the American semiconductor landscape, particularly in the burgeoning field of electric vehicles (EVs).
The accord involves up to $225 million in subsidies that will facilitate Bosch’s ambitious plan to invest $1.9 billion in transforming its manufacturing operations in Roseville, California, for the production of silicon carbide (SiC) power semiconductors.
Silicon carbide semiconductors are integral to the automotive, telecommunications, and defense industries, primarily due to their energy efficiency and capability to enhance both the driving and charging performance of electric vehicles.
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By supporting Bosch’s endeavor, the Commerce Department is not only bolstering domestic semiconductor production but is also addressing the critical supply chain vulnerabilities that were laid bare during the COVID-19 pandemic.
The disruptions in semiconductor manufacturing in Asia had severely affected auto manufacturers, underscoring the necessity for a more resilient and localized production base.
The funding plan is part of a broader initiative established in 2022, which allocated a substantial $52.7 billion fund aimed at boosting US semiconductor production and research.
Funding opportunities
The timely execution of this initiative is paramount, especially with the impending transition of power in Washington and the urgent need to secure critical funding opportunities for American manufacturers.
Bosch’s acquisition of TSI Semiconductors’ assets in California and its projection to commence SiC chip production by 2026 illustrates a strategic pivot towards enhancing domestic capabilities in semiconductor manufacturing.
The potential that this facility holds—projected to account for over 40 per cent of all US SiC device manufacturing capacity once fully operational—could significantly bolster the nation’s position in advanced technology sectors.
The implications of this investment extend beyond mere production metrics. As noted by Paul Thomas, president of Bosch in North America, the investment in Roseville fosters local production of essential components for the transition to electrification, aligning with the broader objectives of clean energy and sustainability.
Representative Doris Matsui’s endorsement further emphasises the importance of this initiative for California and the nation, marking a significant step towards advancing clean mobility and electric vehicle technology.