Bosch Revamps California Plant with $225M Subsidy Deal

The U.S. Commerce Department reached a preliminary agreement with Bosch, providing up to $225 million in subsidies and $350 million in loans to produce silicon carbide semiconductors in California, essential for electric vehicles. Bosch's $1.9 billion investment is set to commence chip production by 2026.

The U.S. Commerce Department announced a preliminary deal with German auto supplier Bosch, offering up to $225 million in subsidies to manufacture silicon carbide power semiconductors in California, vital for electric vehicles.

The funding backs Bosch’s $1.9 billion effort to transform its Roseville manufacturing facility for SiC semiconductor production. Additionally, Bosch is set to receive around $350 million in proposed government loans for the project. This is part of a $52.7 billion fund to support U.S. semiconductor production and research, approved in 2022.

Bosch plans the production of chips on 200-millimeter wafers in 2026, essential for automotive and telecommunications sectors. The investment underscores the importance of federal funding, as emphasized by Bosch's acquisition of TSI Semiconductors' assets. Representative Doris Matsui hailed the project as significant for clean mobility advancements.

(With inputs from agencies.)