Production in California is set to switch to silicon carbide semiconductors due to growing demand from the electric vehicle industry.
German conglomerate Bosch plans to acquire parts of US manufacturer TSI Semiconductors, along with its factory in California. The purchase price has not been disclosed. According to Bosch, it will invest over $1.5 billion to convert the production at the Roseville site from silicon chips to silicon carbide by 2026. This is due to the increasing demand from the electric vehicle industry, as silicon carbide chips allow for greater range and more efficient charging. The exact extent of the investment depends on the opportunities provided by the US Chips and Science Act, a multi-billion dollar subsidy program. Bosch and TSI did not disclose the purchase price.
This would be the third site for the Stuttgart-based company’s chip production, in addition to two factories in Dresden and Reutlingen. As we reported, Bosch announced last summer that it will invest billions in semiconductor technology and develop chips based on gallium nitride (GaN), which enable faster charging in a smaller size.