Bosch's $2B Investment & CHIPS Funding to Power U.S. Tech Future

ROSEVILLE, CA – July 13, 2026

Bosch, a global leader in technology and services, is spearheading a monumental push to fortify the U.S. semiconductor landscape with an up to $2 billion investment in Roseville, California. This transformative project is significantly bolstered by a definitive agreement with the U.S. Department of Commerce for up to $225 million in direct funding from the CHIPS Program Office. The initiative will convert an existing facility into a state-of-the-art production hub for advanced silicon carbide (SiC) semiconductors, positioning California at the forefront of a critical technological revolution and strengthening America's supply chain resilience.

The Roseville facility is set to begin commercial manufacturing in 2026, a remarkably swift timeline achieved by retrofitting a site with over 40 years of semiconductor experience. This strategic move not only accelerates time-to-market but also leverages a highly skilled local workforce, ensuring the U.S. can quickly scale production of components essential for electric vehicles, next-generation mobility, and industrial energy applications.

The CHIPS Act in Action: Fortifying America's Tech Supply Chain

The federal funding is a cornerstone of the project, representing a major milestone for the CHIPS and Science Act, which was enacted to revitalize the domestic semiconductor industry. Beyond the $225 million in direct funding, the agreement also includes proposed federal loans of approximately $350 million and allows Bosch to claim the Department of the Treasury's Advanced Manufacturing Investment Credit, providing a 25% tax credit for qualified capital expenditures. This comprehensive federal support underscores the project's strategic national importance.

“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.

This investment directly addresses vulnerabilities in the global supply chain that have impacted numerous industries. By onshoring the production of SiC chips, the U.S. reduces its dependence on foreign manufacturing hubs. Once fully operational, the Roseville facility is projected to account for over 40% of all U.S.-based SiC device manufacturing capacity.

“The CHIPS Program incentive supports Bosch’s effort to onshore silicon carbide technology that will bolster supply chain resiliency for our country,” commented Bill Frauenhofer, Executive Director for Semiconductor Innovation and Investment at the Department of Commerce. This sentiment was echoed by Jay Timmons, President and CEO of the National Association of Manufacturers (NAM), who stated, "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.”

Powering the Future: Silicon Carbide's Role in EVs and AI

At the heart of this massive investment is the silicon carbide (SiC) semiconductor. These advanced chips are becoming foundational for the future of mobility and energy efficiency. Compared to traditional silicon, SiC chips can handle higher voltages and temperatures while switching faster, which translates into significant performance gains. For electric vehicles (EVs), this means greater range, more efficient recharging, and smaller, lighter electronic components.

Bosch is a pioneer in this field, having already delivered over 60 million SiC chips since 2021. The company plans to manufacture its third-generation SiC chips in Roseville, which promise up to 20 percent higher performance than their predecessors. By moving to larger 200-millimeter wafers, the facility will achieve greater economies of scale, helping to make this high-performance technology more widely available and cost-effective.

Automotive leaders have lauded the move. “A resilient supply chain is essential to the future of the automotive industry and advanced mobility,” said Liz Door, Chief Supply Chain Officer at Ford Motor Company. Similarly, Neil Marsons, Chief Supply Chain Officer at Lucid, noted, "Bosch's investment in domestic manufacturing helps accelerate innovation while supporting the growth of American EV production at scale.”

The impact of SiC technology extends beyond the automotive sector. These chips are also critical for industrial energy applications, particularly for improving the efficiency of data centers. As artificial intelligence workloads grow exponentially, the demand for energy-efficient power conversion soars. SiC chips enable higher-efficiency power conversion with less heat generation, reducing both energy consumption and cooling demands in these massive facilities.

Roseville's Revival: A Blueprint for High-Tech Regional Growth

For Roseville and the greater Sacramento region, Bosch’s investment represents a powerful economic catalyst. The project is expected to create up to 1,000 construction jobs and, once operational, will support up to 700 permanent, high-skilled positions in manufacturing, engineering, and R&D. The company's decision to acquire and transform the site in August 2023, retaining the existing 250 associates, has preserved valuable local expertise while paving the way for future growth.

"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," declared Krista Bernasconi, Mayor of Roseville.

The project has garnered strong support at both state and local levels, including a $25 million California Competes Tax Credit. This synergy between corporate investment and public support is creating a blueprint for regional economic revitalization. "Bosch's investment in Roseville is a powerful testament to California's unmatched talent and commitment to growing advanced manufacturing at scale," said Dee Dee Myers, Senior Advisor to Governor Newsom.

Bosch's commitment extends deep into the community. Through the Bosch Community Fund, the company will invest over $100,000 annually in local STEM education initiatives. Since 2024, the fund has already awarded $200,000 in grants, impacting nearly 1,500 students and teachers. This investment in workforce development is crucial for building a sustainable talent pipeline. Willy Duncan, Superintendent/President of the Sierra Community College District, highlighted this partnership, stating, "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 Strategic Leap Forward for Bosch in North America

The Roseville site marks Bosch's first semiconductor production facility in the United States and is a key pillar in the company's broader North American growth strategy. As the company approaches its 125th anniversary in the U.S. in 2031, it plans to invest up to $7.5 billion across its American operations over the next five years.

“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. “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.”

By integrating both front-end device manufacturing and back-end testing at the Roseville site, Bosch is creating a comprehensive, vertically integrated production hub. This approach not only enhances efficiency but also further insulates its operations from external supply chain disruptions. This strategic investment solidifies Bosch’s position as the world's largest automotive supplier while simultaneously establishing it as a critical player in America’s newly energized domestic semiconductor ecosystem.