Bosch announces preliminary terms with U.S. Department of Commerce for CHIPS Inc ...

Roseville, California - Bosch has signed a preliminary memorandum of terms (PMT) under the CHIPS and Science Act with the U.S. Department of Commerce (DoC). It includes up to $225 million in proposed direct funding to support the transformation of the Bosch production facility in Roseville, California. The proposed investment would support the development of semiconductor manufacturing in the U.S. Bosch plans to invest up to $1.9 billion to transform the Roseville site into a facility that produces and tests silicon carbide (SiC) semiconductors. The Roseville site currently employs around 250 associates with potential to grow in the future.

In April 2023, Bosch announced its intention to acquire the assets of an existing wafer fab in Roseville. The acquisition was closed in August 2023 and since that time Bosch has begun the process to transform the site. Starting in 2026, the first chips will be produced on 200-millimeter wafers based on the pioneering SiC Bosch technology.

"Production of SiC chips in the United States is a key part of our strategic plan to reinforce our semiconductor portfolio and support our local customers," said Michael Budde, president of Mobility Electronics for Bosch. "Silicon carbide chips help to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles to provide affordable electromobility options for consumers."

Bosch brings associates along during transformation

The Roseville location has nearly 40 years of extensive experience in the design and production of semiconductors for automotive and industrial applications.

"We took the unique approach to transform an existing wafer fab rather than build a new facility," said Thorsten Scheer, plant manager in Roseville and regional president of the Bosch Mobility Electronics division in North America. "A major reason was the talented workforce in place at Roseville. Already they have shown their skill and resolve as we transform the site for future production of silicon carbide chips."

Since the acquisition of the site, Bosch has retained nearly all of the 250 associates during the transformation process as it prepares for the 2026 launch of SiC production. The company has provided advanced training where the Roseville team learns from other sites within the Bosch global manufacturing network.

In addition to training its current workforce, Bosch is also investing locally to help build up semiconductor expertise for the future. The Bosch Community Fund provided a $100,000 grant to the Sierra College Foundation in Rocklin, California for its Career Technical Education Support Fund. The grant has helped to support associated costs with certification fees, microcontroller kits, development material, software, protective gear, tools, entry and travel fees for STEM competitions, project supplies for STEM Clubs and more.

Systematic investments in pivotal semiconductor technology

The Roseville site represents the first semiconductor production site in the United States for Bosch. Over the next years, the company intends to invest around $1.9 billion USD in the Roseville site and upgrade the manufacturing facilities to state-of-the-art processes. Proposed investment from the CHIPS and Science Act would help support the transformation of the site. Already the site has received a $25 million California Competes Tax Credit incentive from the Governor's Office of Business & Economic Development (GO-Biz) to support redevelopment and investment in Roseville.

Bosch has indicated it plans to claim the Department of the Treasury's Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. Click here to learn more about the tax credit. In addition to the proposed direct funding of up to $225 million, the CHIPS Program Office would make approximately $350 million in proposed loans - which is a part of the $75 billion in loan authority provided by the CHIPS and Science Act - available to Bosch under the PMT.

As explained in its first Notice of Funding Opportunity, the Department of Commerce may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a potential CHIPS incentives award, including the amount and form of the award. The award amounts are subject to due diligence and negotiation of award documents and are conditional on the achievement of certain milestones. After a PMT is signed, the Department of Commerce begins a comprehensive due diligence process on the proposed projects and continues negotiating or refining certain terms with the applicant. The terms contained in any final award documents may differ from the terms of the PMT being announced today.