Department of Commerce Announces Direct Funding Agreement with Bosch for a $225 Million CHIPS Program Award to Support Domestic Production of Silicon Carbide Semiconductors

WASHINGTON, D.C. – The Department of Commerce’s CHIPS Program Office announced today the signing of a Direct Funding Agreement with Robert Bosch Semiconductor LLC (“Bosch”) for up to $225 million in incentives under the CHIPS and Science Act.

The award will support Bosch’s $2 billion investment to transform its manufacturing facility in Roseville, CA into a state-of-the-art silicon carbide (SiC) semiconductor production facility. SiC semiconductors are essential components to the automotive, industrial, energy, and consumer appliance industries. The CHIPS incentives will support the modernization and expansion of Bosch’s largest SiC facility globally, accelerating the development of new cleanroom space and an advanced manufacturing line for production of SiC semiconductors. Sample production has already commenced with commercial production expected to begin in 2026. The Roseville facility represents the firsts semiconductor production site in the U.S. for Bosch. In conjunction with the award, Bosch plans to invest $7.5 billion in U.S. operations over the next five years.

“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."

Robert Bosch Semiconductor LLC is a subsidiary of Robert Bosch GmbH, a multinational engineering and technology company that is a leading tier 1 automotive and OEM supplier and critical supplier across industrial and energy markets. Bosch is a global leader in silicon carbide power semiconductor production, having produced and delivered more than 60 million SiC chips worldwide since the first generation went into production in 2021.

Silicon carbide is a critical wide bandgap semiconductor technology that handles high voltages, high temperatures, and fast switching with smaller components. By onshoring production capability, the direct funding bolsters the domestic supply chain for critical SiC technology.

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