The Biden-Harris Administration has announced a preliminary agreement between the U.S. Department of Commerce and Bosch to enhance the U.S. supply chain for semiconductor manufacturing components. The non-binding memorandum outlines plans for up to $225 million in proposed funding under the CHIPS and Science Act, supporting Bosch's $1.9 billion investment in its Roseville, California facility. This initiative aims to expand Bosch's silicon carbide (SiC) power semiconductor production, potentially creating 1,000 construction jobs and 700 roles in manufacturing, engineering, and research.
Gina Raimondo, U.S. Secretary of Commerce, emphasized the significance of this investment: "One of the core missions of the bipartisan CHIPS and Science Act is to make targeted investments across every part of the semiconductor industry to accelerate innovation and advance U.S. technology leadership." She noted that SiC chips are crucial for automotive, telecommunications, and defense industries due to their energy efficiency.
Bosch is recognized as a leading automotive supplier with a specialized semiconductor business. The SiC devices from Roseville will enhance electric vehicle efficiency. Once fully operational, this project could account for over 40% of U.S.-based SiC device manufacturing capacity.
Paul Thomas, president of Bosch in North America and Bosch Mobility Americas, stated: "The Roseville investment enables Bosch to locally produce silicon carbide semiconductors, supporting U.S. consumers on the path to electrification."
Production at the Roseville facility is expected to begin in 2026 with both front-end device manufacturing and backend processes like testing and sorting.
Bosch has committed to providing affordable child care options for employees at the site through a new navigation tool offering various care solutions. A project labor agreement with local trades councils will govern construction efforts.
Bosch plans to claim a 25% tax credit under the Department of Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC). Additionally, approximately $350 million in loans may be available from the CHIPS Program Office as part of this initiative.
The Department of Commerce may offer applicants a PMT after satisfactory application review. The PMT outlines potential incentives but remains subject to due diligence and negotiation before finalization.
CHIPS for America has allocated over $25 billion in incentives across 21 states since its inception under President Biden's administration. This program aims to stimulate private sector investment while creating significant employment opportunities nationwide.
