The world’s largest auto supplier is expanding its semiconductor manufacturing capabilities to meet the growing demand for computer chips for electric vehicles. Bosch announced Wednesday that it is acquiring US chipmaker TSI Semiconductor and investing $1.5 billion to produce silicon carbide (SiC) semiconductors and enable the adoption of EVs.
Bosch has been busy transforming its business as the auto industry shifts to sustainable, zero-emission EVs.
Bosch has invested heavily in introducing new products such as electric powertrains, charging solutions, and electric drives to meet the growing demand for EVs and enable the transition.
President of Bosch in North America, Mike Mansuetti, explained last year that the auto industry is “rapidly evolving” toward electric vehicles. The tech and engineering giant expanded its North American manufacturing footprint, revealing in October a new $250 million investment to extend its Charleston, South Carolina, campus by roughly 75,000 square feet to build and assemble electric motors.
Manusuetti added, “Local production helps advance our customer’s regional electrification strategies and further supports the market demand for electrification.”
Bosch is again expanding its North American manufacturing capabilities with plans to acquire Roseville, California-based chipmaker TSI Semiconductors.
Bosch acquires chipmaker to produce SiC chips for EVs
Bosch revealed Wednesday it would be acquiring the chipmaker with plans to invest $1.5 billion in the Roseville site to convert and prepare the facility for the auto industry’s future.
Starting in 2026, Bosch will produce the first chips on 200-millimeter wafers based on silicon carbide (SiC) material. Bosch has been producing SiC chips since 2021 at its Reutlingen location in Germany, so the company knows what it takes to make them.
With EV sales continuing to rise at a record pace, the number of chips needed is only expected to grow from here. Bosch expects to have an average of 25 of its chips in every new EV by 2025.
SiC chips, in particular, are in heavy demand as they enable greater range and more efficient recharging losing up to 50% less energy.
According to Bosch, the full scope of the project is made possible and will rely heavily on federal funding opportunities.
The Biden administration is investing heavily to promote North American manufacturing and the adoption of sustainable transportation and clean energy in the US. The historic Inflation Reduction Act, passed last August, provides incentives and rebates to purchase EVs (up to $7,500 for new and $4,000 for used) and other clean energy alternatives (example: 30% solar tax credit) that will help drive down energy costs in the long run.
In addition, the Chips and Science Act, signed into law last year, invests in US chip-making capabilities to strengthen the domestic supply chain and enable clean energy adoption.
Regarding the Bosch acquisition and investment, the following statement from Vice President Kamala Harris was provided to Electrek:
This $1.5 billion investment will bring down costs, strengthen our electric vehicle supply chain, help rebuild American manufacturing, and create economic opportunity for the working families of California. And it will put more electric vehicles on the road, a priority I have worked for since I served in the United States Senate. All of this was made possible by our Administration’s Invest in America agenda. Unfortunately, House Republicans are working to undo our progress. They want to defund American manufacturing and ship jobs overseas. President Biden and I will never let that happen.
According to a recent analysis from the Financial Times, in the eight months since the Chips and Science Act and Inflation Reduction Act were signed, over $200 billion in private investments in the US has been announced.
With the Biden administration aiming for a 50% electric vehicle sales share by 2030, the number is only expected to continue rising.
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