Company executives and White House officials recently announced that a major automotive supplier is poised to receive more than $200 million in federal funding to overhaul a facility in Northern California.
Transforming a Northern California Factory
Under the preliminary agreement between the U.S. Department of Commerce and Bosch, as much as $225 million in funding under the 2022 CHIPS and Science Act would support the German company’s plan to transform the former TSI Semiconductors plant in Roseville, California, to test and manufacture silicon carbide semiconductors.
The project, estimated at $1.9 billion, is slated to create up to 1,700 jobs in the Sacramento suburb, including 1,000 construction jobs and 700 permanent positions in manufacturing, engineering, and research and development roles. Bosch acquired TSI in 2023.
Producing Silicon Carbide Chips
Commerce Department officials said that silicon carbide semiconductors would be critical to improving the efficiency of electric vehicles both during charging and while driving. The Roseville site, which is scheduled to produce the first of those chips in 2026, will eventually account for the majority of Bosch’s silicon carbide capacity.
Federal Loan Funding Also Available
The administration also said that in addition to the $225 million in direct financial support, another $350 million in loans will be available to Bosch for the project.
Incentives Slated to Create 125,000 Jobs
The Biden administration said that the CHIPS for America program, designed to promote domestic semiconductor manufacturing, has allocated more than $25 billion in incentives to date. The projects receiving those dollars are expected to create more than 125,000 jobs, officials added.
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