Bosch announced plans to buy key assets of the US-based TSI Semiconductors to bolster its chip business. The deal is subject to regulatory approval.  

Bosch plans to invest more than US$1.5bn in the Roseville, California-based TSI to produce silicon carbide (SiC) for electric vehicles. TSI is a foundry for application-specific integrated circuits (ASICs). Its primary focus is on manufacturing a high volume of chips using 200-millimetre silicon wafers for various industries including automotive, energy and telecommunications. 

Roseville will act as a “third pillar” for Bosch’s semiconductor business in addition to its Reutlingen and Dresden facilities in Germany. The new location in Roseville will, therefore, reinforce Bosch’s international semiconductor manufacturing network.  Starting in 2026, following a retooling phase, first SiC chips will be produced on 200-millimeter.

Since 2021, Bosch has been using its own proprietary processes to mass-produce at Reutlingen. In the future, Reutlingen will also produce them on 200-millimeters wafers. By the end of 2025, the company will have extended its clean-room space in Reutlingen from roughly 35,000 to more than 44,000 square meters.

The automotive and especially EV industry has a high demand for chips while the market for SiC chips is also growing rapidly, with an average annual growth rate of 30%py, according to Bosch. The company asserts that SiC chips can improve the range and charging efficiency of EVs by consuming up to 50% less energy. Bosch expects that by 2025, it will have an average of 25 of its chips integrated into each new vehicle.

The move comes as the US plans to establish new semiconductor manufacturing and design facilities across the country to reduce its dependence on Asia for chips. In late April, CHIPS for America released a paper outlining the vision and strategy for a National Semiconductor Technology Center (NSTC), a key component of the research and development program established by President Biden’s bipartisan CHIPS and Science Act. The NSTC will work with industry, academia, and other partners to establish a network of technical centres across the USA to foster nationwide research and innovation.