German technology company Bosch plans to invest $1.5 billion to convert a California semiconductor plant it acquired as part of a purchase of chipmaker TSI Semiconductors.
Bosch says it plans to invest in the 45-acre Roseville, Calif., facility, though the full scope of the project is dependent on federal funding from the CHIPS and Science Act and state economic development incentives.
The plant currently produces 200-mm silicon wafers. Bosch says it plans to convert manufacturing processes at the plant to produce its silicon carbide wafers. Stefan Hartung, chair of Bosch’s board, said in a statement that the upgrades would build on the plant’s existing 150,000-sq-ft clean-room facilities to manufacture chips at a larger scale. Bosch plans to have the retooled plant operating in 2026.
The goal is to meet rising demand for semiconductors, particularly from the auto sector. Bosch says its silicon carbide chips help electric vehicles achieve greater range and more efficient recharging.
The facility is planned as a “third pillar” for Bosch’s semiconductor business. Bosch has two chip plans in Germany, and is also planning to expand its clean-room space at its Reutlingen plant.
“By extending our semiconductor operations internationally, we are strengthening our local presence in an important electric vehicle market,” Markus Heyn, head of Bosch’s mobility solutions business, said in a statement.