13.07.2026
Press release
Business/economy
Bosch announces $225 million direct funding agreement with the U.S. Department o ...
Roseville, California – Bosch, a leading provider of technology and services and the largest automotive supplier in the world according to external rankings, announced a definitive agreement with the Trump Administration for up to $225 million in direct funding from the Department of Commerce’s CHIPS Program Office to support the up to $2 billion Bosch is investing to transform its Roseville, California site for the production of silicon carbide (SiC) semiconductors. The Roseville facility, which has more than 40 years of experience in semiconductor manufacturing, is undergoing a profound evolution into a facility that produces and tests SiC semiconductors with state-of-the-art processes and equipment. Bosch also announced it has begun sample production in Roseville as the company intends to produce its first commercial production chips on 200-millimeter wafers based on the pioneering SiC Bosch technology in 2026. “The start of sample production and our agreement with the Department of Commerce is a milestone in providing our local customers with what they have requested – localized U.S.-based manufacturing,” said Paul Thomas, president and CEO of Bosch in North America. The production of silicon carbide chips in the United States helps to support supply chain resiliency and capitalizes on the expertise of U.S. manufacturing associates to bring this technology to the U.S. market in a timely manner....Paul Thomas, president and CEO of Bosch in North America. “The Trump Administration is committed to developing a secure supply chain here in the United States that will enable continued innovation and competitive leadership in industries of national and economic security importance,” said Secretary of Commerce Howard Lutnick. As part of its investment into U.S. manufacturing at the Roseville site, Bosch has developed a new cleanroom space and high-tech manufacturing line for production of silicon carbide chips. Bosch has accelerated its time-to-market through investment into a long-standing U.S.-based manufacturing facility with highly-skilled U.S.-based associates who bring specific semiconductor experience. In April 2023, Bosch announced its intention to acquire the assets of the existing wafer fab in Roseville. The acquisition was closed in August 2023 and since that time Bosch began to transform the site while also maintaining employment of the existing associates throughout the transformation process. Bosch invested in the further development of Roseville associates through training and collaboration with the Bosch production network. Bosch has a long-standing commitment to the U.S. and is celebrating its 120th anniversary in the country in 2026. The company plans to invest up to $7.5 billion over the next five years across its operations in the U.S. as it heads towards its 125th anniversary of U.S. operations in 2031. “We are focused on growth and investment in the United States in order to increase the share of our global portfolio that is represented by North America and the U.S. specifically,” Thomas said. “The Roseville investment is a key milestone in our 120 years in the U.S., and we are appreciative of the support of the Administration as we look to accelerate our growth here.” Silicon carbide: essential for future mobility & efficiency Silicon carbide chips are becoming foundational in electric and next-generation mobility systems as they handle high voltages, high temperatures, and fast switching more efficiently. They also enable automotive manufacturers with a technology that supports consumer choice in the market as it helps to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles. Recently, Bosch announced its third-generation silicon carbide chips that deliver up to 20 percent higher performance and are smaller than the previous generation. In the near future, Bosch plans to manufacture third-generation silicon carbide chips in Roseville. The new generation helps to enable greater cost efficiency and supports making high-performance electronics more widely available worldwide. Bosch has already delivered more than 60 million SiC chips worldwide since the first generation went into production in 2021. In addition to mobility applications, silicon carbide also has potential uses in other business sectors including industrial energy applications for energy consumption effectiveness in data centers, since SiC chips enable higher-efficiency, higher-power conversion with less heat, and smaller components, making them ideal to support rapidly growing AI workloads while reducing energy and cooling demands. “Silicon carbide semiconductors are the enabling technology behind the electrification in multiple critical industries including energy, automotive, and defense. The CHIPS Program incentive supports Bosch’s effort to onshore silicon carbide technology that will bolster supply chain resiliency for our country,” said Bill Frauenhofer, Executive Director for Semiconductor Innovation and Investment at the Department of Commerce. The Roseville site represents the first semiconductor production site in the United States for Bosch and is one of 20 facilities with manufacturing operations in the U.S. for Bosch across the company’s broad portfolio. Bosch employs around 10,000 associates working in manufacturing operations in the United States. The company has invested significant capital in the U.S. over the past five years, the majority of which is focused on manufacturing. The Roseville facility has nearly 40 years of extensive experience in the production of semiconductors for automotive and industrial applications, which it will now apply to the production of silicon carbide chips. In addition, the Roseville site has also been awarded a $25 million California Competes Tax Credit incentive from the Governor’s Office of Business & Economic Development (GO-Biz) to support redevelopment and investment in Roseville. The Bosch site in Roseville, California, currently employs more than 300 associates, with potential to grow in the future based on market development. Along with advancing the skills of its current associates, Bosch is making local investments to strengthen future semiconductor talent in the United States. Beginning in 2026, Bosch plans to invest more than $100,000 per year in the Roseville community through the Bosch Community Fund, the regional foundation for Bosch in North America. Since 2024, the Bosch Community Fund has invested $200,000 in grant awards to schools and nonprofits in support of science, technology, engineering, and math (STEM) education initiatives, impacting nearly 1,500 students and teachers in the Roseville area. These strategic investments by the Bosch Community Fund will empower students, educators, and community members to foster innovation and strengthen workforce development in the region. As an example, the Sierra College Foundation in Rocklin, California, received a grant award in support of its Career Technical Education Support Fund. This grant helped cover expenses such as certification costs, microcontroller kits, development materials, software, protective equipment, tools, competition entry and travel fees, and project resources for STEM clubs and programs. Supporting quotes: “We applaud suppliers who are taking action to localize production. A resilient supply chain is essential to the future of the automotive industry and advanced mobility. Bosch’s investment strengthens the availability of critical technologies that support U.S. vehicle manufacturing.” – Liz Door, Chief Supply Chain Officer, Ford Motor Company “The introduction of silicon carbide semiconductor manufacturing in the United States is a critical step toward building a resilient domestic supply chain, strengthening access to high-performance power electronics essential for improving the range, efficiency and affordability of electric vehicles. Bosch's investment in domestic manufacturing helps accelerate innovation while supporting the growth of American EV production at scale.” – Neil Marsons, Chief Supply Chain Officer, Lucid “This initiative will help drive innovation and expand a highly skilled workforce in our region, further establishing Roseville as a center for cutting-edge manufacturing. It’s a strong example of how strategic investment can reinforce America’s semiconductor leadership.” – Kevin Kiley, U.S. Congressman representing California's 3rd District “Today’s announcement is a pivotal moment for semiconductor manufacturing —and for the technologies that will define our future. In this next phase, Bosch’s partnership with the Department of Commerce under the CHIPS for America program will scale silicon carbide chip production, expand operations and create more jobs at home. When we build these capabilities in the United States, we’re not just making chips—we’re securing our economic strength and national security for decades to come.” – Jay Timmons, President and CEO, National Association of Manufacturers (NAM) "When I co-authored the original CHIPS Act, I believed investments like this could help communities like Sacramento lead the next era of American manufacturing. This $225 million federal investment will strengthen our economy, ensure a resilient supply chain, and build on Sacramento's place at the forefront of innovation." – Doris Matsui, U.S. Congresswoman representing California’s 7th District "Bosch's investment in Roseville is a powerful testament to California's unmatched talent and commitment to growing advanced manufacturing at scale. This project will not only create good-paying jobs for the greater Sacramento region, but also strengthen the state's semiconductor supply chain and reinforce our global leadership in next-generation chip production.” – Dee Dee Myers, Senior Advisor to Governor Newsom and Director of the Governor’s Office of Business and Economic Development (GO-Biz) “A CHIPS award for Bosch is more than an investment in one company; it's confirmation that the Sacramento region has arrived as a national hub for innovation, advanced manufacturing, and next-generation industry. It accelerates the momentum we've built and sends a clear signal: this is where global companies come to scale, collaborate, and lead.” – Krista Bernasconi, Mayor of Roseville “Sierra College is proud to collaborate with Bosch to deliver the specialized technical training and talent pipeline necessary for our region’s semiconductor manufacturing success. A CHIPS investment in Bosch’s Roseville operations will be transformative, providing a vital industrial foundation for the region, with Sierra College ready to expand educational pathways to prepare students for high-demand STEM careers that will contribute to the region’s long-term economic growth.” – Willy Duncan, Superintendent/President, Sierra Community College District “Bosch’s investment in the Greater Sacramento region strengthens our economy, accelerates growth in the semiconductor industry and reinforces the United States' leadership in advanced technology.” – Barry Broome, President & CEO of Greater Sacramento Economic Council
