# Bosch buys US semiconductor foundry to expand EV chip output Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Bosch Buys US Semiconductor Foundry to Expand EV Chip Output Meta Description: Bosch invests $1.5 billion to buy TSI Semiconductors assets, ramp up silicon carbide chip production for electric vehicles in California, aiming for chip URL: https://financedigest.com/bosch-buys-us-semiconductor-foundry-to-expand-ev-chip-outputhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-26t145343z4lynxmpej3p0n1rtroptp4autos-semiconductors-bosch-1736814093640-compressed.jpg) # Bosch buys US semiconductor foundry to expand EV chip output By Joseph White and Stephen Nellis DETROIT (Reuters) – Germany’s Bosch Group has agreed to buy key assets of California chip manufacturer TSI Semiconductors and invest $1.5 billion to expand U.S. production of silicon carbide chips for [electric vehicles](https://www.financedigest.com/china-greenlights-audi-faws-3-3-billion-electric-vehicle-venture.html "China greenlights Audi-FAW’s .3 billion electric vehicle venture"). Bosch and TSI did not disclose a purchase price. Bosch said it [plans to invest $1.5 billion](https://www.financedigest.com/nestle-pledges-1-billion-to-coffee-sustainability-plan.html "Nestle pledges billion to coffee sustainability plan") to retool TSI’s chip production facilities in Roseville, California to start producing silicon carbide chips by 2026. The [investment “will be heavily dependent on federal funding opportunities”](https://www.financedigest.com/private-equity-firms-hungry-for-investment-opportunities-but-business-owners-must-be-cautious-2.html "Private equity firms hungry for investment opportunities, but business owners must be cautious") through the CHIPS act as well as state subsidies, Bosch said in a statement. Bosch said the TSI facility would [become the “third pillar” of in-house semiconductor production](https://www.financedigest.com/what-are-the-best-ways-to-become-more-productive-working-from-home.html "What are the best ways to become more productive working from home? "), along with two sites in Germany. Like other automotive manufacturers, Bosch was hit hard over the past two [years by disruptions](https://www.financedigest.com/three-waves-of-fintech-disruption-leading-trends-for-the-year-ahead.html "Three waves of Fintech disruption: Leading trends for the year ahead") to semiconductor production in Asia, exacerbated by the COVID-19 pandemic. Those shortages have eased but not gone away. Bosch’s automaker customers have continued to [push for more secure](https://www.financedigest.com/the-push-and-pull-of-identity-security-adoption-in-the-financial-services-industry.html "The push and pull of identity security adoption in the financial services industry"), diversified sources of chips. The silicon carbide chips Bosch said it will manufacture at the TSI Roseville site are increasingly in demand by [electric vehicle](https://www.financedigest.com/taiwans-foxconn-shows-off-three-electric-vehicle-prototypes.html "Taiwan’s Foxconn shows off three electric vehicle prototypes") manufacturers. The silicon carbide chemistry [enables greater driving range and faster](https://www.financedigest.com/dash-blockcypher-combine-forces-to-drive-cryptocurrency-adoption-partnership-enables-faster-and-more-cost-effective-enterprise-integration.html "Dash &BlockCypher Combine Forces to Drive Cryptocurrency Adoption Partnership Enables Faster and More Cost Effective Enterprise Integration") recharging, Bosch said. [Demand for silicon carbide semiconductors is growing](https://www.financedigest.com/demand-for-isobutylene-market-to-grow-at-a-cagr-of-5-through-2030.html "Demand for Isobutylene Market to Grow at a CAGR of 5% Through 2030") by 30% annually, Bosch said. That [demand has led to a surge](https://www.financedigest.com/adoption-of-autonomous-underwater-vehicles-market-to-surge-during-the-forecast-period-owing-to-increased-consumer-demand.html "Adoption of Autonomous Underwater Vehicles Market to Surge During the Forecast Period Owing to Increased Consumer Demand") in investment in the chips. U.S-based Wolfspeed Inc is building new [plants to make silicon carbide chips](https://www.financedigest.com/exclusive-italy-woos-intel-over-multibillion-euro-chip-plant-sources.html "Exclusive-Italy woos Intel over multibillion-euro chip plant -sources") in New York State and in Germany. Onsemi Corp is also [investing heavily in silicon carbide and has signed a strategic agreement with Volkswagen](https://www.financedigest.com/volkswagen-boosts-electric-car-investment-in-spain-to-10-billion-euros.html "Volkswagen boosts electric car investment in Spain to 10 billion euros") AG to supply chips to the automaker. The TSI site currently is a foundry for application-specific integrated circuits, or ASICs used in various industries, Bosch said. Bosch plans to acquire the buildings, machines and infrastructure of TSI as [well as well as its commercial semiconductor business](https://www.financedigest.com/what-actions-can-business-leaders-in-the-finance-industry-take-to-improve-wellness.html "What actions can business leaders in the finance industry take to improve wellness?"). After re-tooling the factory, Bosch said it plans to start producing silicon carbide [chips](https://www.financedigest.com/german-space-firm-ohb-plans-to-delist-as-kkr-takes-minority-stake.html "German space firm OHB plans to delist as KKR takes minority stake") on 200-milimeter wafers – the discs of silicon that chips are produced upon – in 2026 in 10,000 feet of clean room space. (This story has been refiled to correct the spelling of TSI Semiconductors in paragraph 10) (Reporting By Joe White, Editing by Nick Zieminski) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---