News: Microelectronics
13 December 2024
Bosch allocated $225m in US CHIPS Act funding, plus $350m in loans
The US Department of Commerce has signed a non-binding preliminary memorandum of terms (PMT) to provide up to $225m in proposed direct funding under the CHIPS and Science Act to tier-1 automotive supplier Bosch. The investment would support Bosch’s planned investment of $1.9bn to transform its manufacturing facility in Roseville, California, for production of silicon carbide (SiC) power semiconductors. This direct funding would support the expansion of Bosch’s largest SiC device factory globally, which would significantly increase the firm’s production capacity and create up to 1000 construction jobs and up to 700 manufacturing, engineering and R&D jobs in California.
“SiC chips are important components for applications in the automotive, telecommunications, and defense industries because they utilize less energy,” says US Secretary of Commerce Gina Raimondo. “With this proposed investment, we are taking another important step in fulfilling that priority to ensure our supply chains are more secure while creating over a thousand anticipated jobs in the process.”
As well as having a specialized semiconductor business within its portfolio, Bosch is a provider of trench-gate SiC semiconductors for the automotive industry. The SiC devices to be produced by Bosch in Roseville are important for enhancing the efficiency of both electric vehicle driving and charging. When at full capacity, the project is expected to produce most of Bosch’s total SiC capacity and could comprise more than 40% of all US-based SiC device manufacturing capacity.
“The Roseville investment enables Bosch to locally produce silicon carbide semiconductors, supporting US consumers on the path to electrification,” says Paul Thomas, president of Bosch in North America and Bosch Mobility Americas.
Bosch expects to produce its first chips on 200mm wafers in its Roseville facility starting in 2026, performing both front-end device manufacturing and back-end testing, sorting and dicing processes.
Bosch plans to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. In addition to the proposed direct funding of up to $225m, the CHIPS Program Office would make about $350m in proposed loans (part of the $75bn in loan authority provided by the CHIPS and Science Act) available to Bosch under the PMT.
As explained in its first Notice of Funding Opportunity, the Department of Commerce may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a potential CHIPS incentives award, including the amount and form of the award. The award amounts are subject to due diligence and negotiation of award documents and are conditional on the achievement of certain milestones. After a PMT is signed, the Department of Commerce begins a comprehensive due diligence process on the proposed projects and continues negotiating or refining certain terms with the applicant.
Coherent, SkyWater and X-Fab all agree preliminary terms for US CHIPS Act funding
Wolfspeed announces $750m in proposed funding from US CHIPS Act plus $750m from investment group
Bosch acquiring US chipmaker TSI, adding California plant to Reutlingen and Dresden fabs in Germany
Bosch investing €3bn in semiconductor business by 2026
