Bosch will acquire U.S. chip maker TSI Semiconductors as part of the Germany-based company's expansion further into the semiconductor sector.
As part of the deal, Bosch will invest $1.5 billion to upgrade TSI Semiconductor’s Roseville, California manufacturing site. The retooled facility is expected to begin operations in 2026, according to the announcement.
Currently, the Roseville foundry site primarily produces 200-millimeter silicon wafers for use in mobility, telecommunications, energy and life sciences industries.
The funding will go towards transforming the site to manufacture the same sized chips, now using silicon carbide (SiC), a semiconductor material thought to allow for higher range and more efficient re-charging in EVs.
Bosch is looking to grow its SiC business to leverage demand for the material from the electric mobility sector. Last year, the company announced it would invest 3 billion euros in its European semiconductor business.
The size of that growth in the U.S., however, remains unclear, as the company noted in its announcement that it depends on federal funding from the CHIPS and Science Act and "economic development opportunities" from the California state government.
"With the acquisition of TSI Semiconductors, we are establishing manufacturing capacity for SiC chips in an important sales market while also increasing our semiconductor manufacturing, globally," Stefan Hartung, chair of Bosch's board of management, said in a statement. "The existing clean-room facilities and expert personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale."
TSI adds to Bosch's global network of semiconductor facilities. The company already operates chip manufacturing sites in Mexico, Germany, Spain, Hungary, China and Malaysia.
As demand for SiC wafers rises on the backs of EVs, Bosch is also expanding its production space for the material at its Reutlingen, Germany site. The company says it expects the SiC market to grow by 30% or more annually.