Bosch has signed a definitive agreement with the U.S. Department of Commerce for up to $225 million in direct funding through the department's CHIPS Program Office. The money supports Bosch's up to $2 billion investment to convert its Roseville, Calif., facility into a production and testing site for silicon carbide (SiC) semiconductors—chips that are becoming central to electric vehicles, industrial power systems, and high-efficiency data centers.

"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," said Paul Thomas, president and CEO of Bosch in North America. "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."

The facility isn't new to chipmaking. It has more than 40 years of semiconductor manufacturing history, and Bosch is now retooling it with a new cleanroom and a high-tech production line dedicated to SiC. The company says it has already started sample production and expects to begin commercial manufacturing of 200-mm SiC wafers in 2026—just three years after acquiring the site in 2023.

"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," said Secretary of Commerce Howard Lutnick.

Why It Matters

SiC chips handle higher voltages, higher temperatures, and faster switching than traditional silicon, which makes them a better fit for EV powertrains, plug-in hybrids, and industrial energy applications. Bosch says the technology also supports more efficient power conversion for the AI-driven data centers, pushing up demand for cooling and power capacity. For U.S. manufacturers and automotive suppliers, a domestic SiC source means shorter lead times and less exposure to overseas supply chain disruptions—the kind that rattled the industry during COVID-19.

"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," said Bill Frauenhofer, Executive Director for Semiconductor Innovation and Investment at the Department of Commerce.

Bosch says it has delivered more than 60 million SiC chips globally since its first generation launched in 2021, and Roseville is slated to eventually produce the company's third-generation chips, which it says deliver up to 20% higher performance in a smaller footprint than the previous generation.

The Roseville plant is Bosch's first U.S. semiconductor production site and one of 20 U.S. manufacturing facilities the company operates. Bosch employs roughly 10,000 people across its U.S. manufacturing operations, with more than 300 currently at the Roseville site—a number the company says could grow depending on market demand. The site also picked up a $25 million California Competes Tax Credit from the state's Governor's Office of Business & Economic Development to help fund the redevelopment.

Beyond the plant itself, Bosch says it plans to invest more than $100,000 a year in the Roseville community starting in 2026 through the Bosch Community Fund, building on $200,000 already granted since 2024 to support STEM education for nearly 1,500 local students and teachers.

The Roseville deal is one piece of a much larger commitment: Bosch plans to invest up to $7.5 billion in U.S. operations over the next five years as it heads toward its 125th anniversary of U.S. operations in 2031.

"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," Thomas said. "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."