The Commerce Department finalized a direct funding agreement with Robert Bosch Semiconductor that will provide up to $225 million in CHIPS and Science Act funding to support domestic production of silicon carbide (SiC) semiconductors at the company’s facility in Roseville, Calif.
In conjunction with the award, Bosch plans to invest $7.5 billion in U.S. operations over the next five years.
According to a July 13 press release from the Commerce Department’s National Institute of Standards and Technology, the award will help fund Bosch’s approximately $2 billion effort to modernize and expand the California manufacturing site into a state-of-the-art SiC semiconductor production facility.
Sample production has already begun, and commercial production is expected to start this year. The Roseville site marks Bosch’s first semiconductor manufacturing facility in the United States.
“Silicon carbide semiconductors are the enabling technology behind electrification in multiple critical industries including energy, automotive, and defense,” said Bill Frauenhofer, executive director for semiconductor innovation and investment at the Department of Commerce. “The CHIPS Program incentive supports Bosch’s effort to onshore silicon carbide technology that will bolster supply chain resiliency for our country.”
Silicon carbide semiconductors are designed to operate at higher voltages and temperatures than conventional silicon chips, making them critical components for electric vehicles, industrial equipment, energy infrastructure, and consumer appliances.
The direct funding agreement follows a preliminary memorandum of terms, which Commerce announced in December 2024. At that time, the agency said the Roseville project had the potential to account for more than 40% of all U.S.-based silicon carbide device manufacturing capacity.
The Bosch award is part of the Commerce Department’s ongoing implementation of the CHIPS and Science Act, which aims to expand domestic semiconductor manufacturing capacity. President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available.