Bosch starts sample chip production at first US plant, finalizes $225 million CHIPS Act funding

Sample production begins

Bosch began sample production of silicon carbide chips at its Roseville, California plant on Monday, finalizing a $225 million funding agreement with the U.S. Commerce Department under the CHIPS and Science Act. The German company acquired the 40-year-old facility from TSI Semiconductors in August 2023 for a total investment of $2 billion, including the federal grant. Paul Thomas, president and CEO of Bosch in North America, told Reuters the site was "a really good location for us and we thought it was the right thing to do," citing the trade framework of the U.S.-Mexico-Canada Agreement. The company has retained and retrained the existing workforce since the acquisition, according to a Handelsblatt report.

Funding and political backdrop

The $225 million grant was allocated from the CHIPS Program Office, established under the 2022 CHIPS and Science Act to shore up domestic semiconductor production. Bosch had signed the initial contracts under the Biden administration in 2023, a fact that caused uncertainty after Donald Trump's return to the White House brought a more confrontational trade stance toward Europe, Handelsblatt noted. The bipartisan nature of the CHIPS Act and the fact that Roseville sits in a politically competitive district helped the deal survive the administration's review of Biden-era subsidies.

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.

California Governor Gavin Newsom told Handelsblatt that the state's role "has always been to create the right framework conditions for companies to succeed," adding that California invests in talent and fosters innovation.

Silicon carbide's role in EVs and beyond

Unlike the chips used in vehicle infotainment or driver-assistance features, silicon carbide semiconductors manage high-voltage electricity. In electric vehicles they transfer power from the battery to the motor with lower energy losses, which improves driving range and charging speed, according to Bosch. Paul Thomas also flagged data centers as a non-automotive application, signaling how the chips bridge industrial and energy storage markets. The Roseville plant will produce SiC chips on 200-millimeter wafers, a format that allows higher throughput in mass production.

Timetable and market expectations

Sample production is under way; Bosch said commercial manufacturing will start later this year. The move comes as automakers and suppliers deepen their U.S. footprints to avoid tariffs and protect against geopolitical shocks, recalling the COVID-era chip shortages that paralyzed production lines. The Roseville investment is the company's first U.S. semiconductor factory and represents a $2 billion bet on localized supply chains for a critical technology.