$575m for Bosch US SiC plant
Bosch has signed a preliminary deal with the US government for $225m of direct funding and $350m of loans for its silicon carbide plant in Roseville, California.
The preliminary memorandum of terms (PMT) under the CHIPS and Science Act will support the $1.9bn conversion of the plant to SiC after the purchase over a year ago.
The acquisition, the first Bosch semiconductor fab and test centre in the US, closed in August 2023 and since that time Bosch has begun the process to transform the site, aiming to start SiC production in 2026 on 200mm wafers.
Bosch has retained almost all of the 250 staff at the site, acquired from TSI Semiconductors, but the news comes as the company is looking to shed 8250 jobs worldwide. The non-binding deal is also subject to due diligence but may not survive the transition to the Trump administration at the start of 2025.
“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.”
“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.”
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.
Like other semiconductor firms, Bosch plans to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. 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.
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
