US-German Partnership Boosts Silicon Carbide Semiconductor Production

The U.S. Commerce Department has announced a preliminary agreement with German auto supplier Bosch for up to $225 million in subsidies. This funding aims to support Bosch's $1.9 billion investment in transforming its Roseville, California facility into a production hub for silicon carbide (SiC) power semiconductors, crucial for electric vehicles (EVs).

In addition to the grants, Bosch is also proposed to receive approximately $350 million in government loans, leveraging the $52.7 billion fund for U.S. semiconductor production and research approved in 2022. This strategic move underscores the urgency to finalize major loans before the upcoming presidential transition.

Bosch anticipates commencing production on 200-millimeter wafers by 2026. These SiC chips are pivotal for automotive, telecommunications, and defense sectors, offering enhanced energy efficiency and critical for boosting EV driving and charging performance.

The acquisition of key assets from California-based TSI Semiconductors in 2023 highlighted Bosch's reliance on federal funding opportunities. The COVID-19 pandemic's disruption to semiconductor production in Asia has further underscored the importance of local production capabilities.

This initiative positions Bosch to contribute significantly to U.S.-based SiC device manufacturing capacity, potentially comprising over 40% of the total. Representative Doris Matsui, a California Democrat instrumental in the 2022 law, emphasized the award's role in advancing clean mobility and clean energy technologies.