Bosch has started sample production of silicon carbide (SiC) semiconductor chips at its Roseville, California, facility, marking a key step toward bringing advanced power chip manufacturing back to the United States. The company also secured up to $225 million in direct funding from the U.S. Department of Commerce’s CHIPS Program Office to support its planned investment of up to $2 billion at the site.
The California plant is expected to begin commercial production in 2026, just three years after Bosch acquired the former wafer fabrication facility. Once operational, it will become Bosch’s first semiconductor manufacturing site in the United States and produce third-generation SiC chips on 200-millimeter wafers.
The move aligns with Washington’s push to strengthen domestic semiconductor manufacturing and reduce dependence on overseas supply chains for critical technologies. Silicon carbide chips are increasingly used in electric vehicles, industrial equipment, power electronics, and high-efficiency energy systems.
“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.
Building domestic chip capacity
Bosch acquired the Roseville facility in 2023 and has since upgraded it with a new cleanroom and advanced manufacturing equipment designed specifically for silicon carbide chip production. Rather than building a new factory from scratch, the company used the site’s nearly four decades of semiconductor manufacturing experience to speed up deployment.
Secretary of Commerce Howard Lutnick said, “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.”
The Roseville investment is part of Bosch’s broader U.S. expansion strategy. The company plans to invest up to $7.5 billion across its U.S. operations by 2031 as it expands manufacturing capacity and grows its North American business.
Bosch says it has already shipped more than 60 million silicon carbide chips globally since launching production of its first-generation devices in 2021. The chips manufactured in California will be based on the company’s third-generation technology, which the company says delivers up to 20 percent higher performance while using a smaller footprint than the previous generation.
Powering future electric systems
Silicon carbide semiconductors have become increasingly important because they operate more efficiently under high voltages and temperatures than conventional silicon chips. In electric vehicles, they can improve driving range, enable faster charging, and reduce energy losses. Beyond transportation, they are also finding applications in data centers, industrial power systems, and energy infrastructure where efficient power conversion is becoming increasingly critical.
The Roseville site currently employs more than 300 people, with room for expansion as production scales. Bosch is also investing in workforce development through local education partnerships and plans to contribute more than $100,000 annually to community STEM programs beginning in 2026.
Ford welcomed the investment, with Liz Door, chief supply chain officer, saying, “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.”