TSI Semiconductors in Roseville, California

Rising demand for SiC chips: Bosch plans to acquire U.S. chipmaker TSI Semiconductors

Bosch is expanding its semiconductor business with silicon carbide chips. The technology company plans to acquire assets of the U.S. chipmaker TSI Semiconductors, based in Roseville, California.

“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. The existing clean-room facilities and expert personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale.”

Dr. Stefan Hartung

Dr. Stefan Hartung

chairman of the board of management of Robert Bosch GmbH

With a workforce of 250, the company is a foundry for application-specific integrated circuits, or ASICs. Currently, it mainly develops and produces large volumes of chips on 200-millimeter silicon wafers for applications in the mobility, telecommunications, energy, and life sciences industries. Over the next years, Bosch intends to invest more than 1.5 billion USD in the Roseville site and convert the TSI Semiconductors manufacturing facilities to state-of-the-art processes. Starting in 2026, the first chips will be produced on 200-millimeter wafers based on the innovative material silicon carbide (SiC).

In this way, Bosch is systematically reinforcing its semiconductor business, and will have significantly extended its global portfolio of SiC chips by the end of 2030. Above all, the global boom and ramp-up of electromobility are resulting in huge demand for such special semiconductors. The full scope of the planned investment will be heavily dependent on federal funding opportunities available via the CHIPS and Science Act as well as economic development opportunities within the State of California. Bosch and TSI Semiconductors have reached an agreement to not to disclose any financial details of the transaction, which is subject to regulatory approval.

Acquisition of TSI Semiconductors creates new manufacturing capacity

TSI Semiconductors in Roseville, Kalifornien

TSI Semiconductors in Roseville, Kalifornien

The new location in Roseville will reinforce Bosch’s international semiconductor manufacturing network. Starting in 2026, following a retooling phase, first SiC chips will be produced on 200-millimeter wafers in a facility offering roughly 10,000 square meters of clean-room space. At an early stage, Bosch invested in the development and production of SiC chips. Since 2021, it has been using its own proprietary, highly complex processes to mass-produce them at its Reutlingen location near Stuttgart.

Demand for chips for the automotive industry remains high. By 2025, Bosch expects to have an average of 25 of its chips integrated in every new vehicle. The market for SiC chips is also continuing to grow fast – by 30 percent a year on average. The main drivers of this growth are the global boom and ramp-up of electromobility.

Systematic investments in pivotal semiconductor technology

They are small, powerful, and extremely efficient: semiconductors made of silicon carbide (SiC).

They are small, powerful, and extremely efficient: semiconductors made of silicon carbide (SiC).

Production at the Bosch wafer fab in Dresden (300-millimeter wafers) started in July 2021. At nearly one billion euros, the wafer fab is the biggest single investment in the company’s history.

In its wafer fabs in Reutlingen and Dresden, Bosch has invested more than 2.5 billion euros in total since 200-millimeter technology was introduced in 2010. On top of this, billions of euros have been invested in developing microelectronics. Independently of the investment now planned in the United States, the company announced in summer last year that it will be investing a further 3 billion euros in its semiconductor business in Europe, both as part of its investment planning and with the aid of the EU’s “Important Project of Common European Interest on Microelectronics and Communication Technologies” program.

Bosch MEMS sensors

MEMs sensors

To create a MEMS sensor module, the MEMS sensor element is packed in a semiconductor housing (e.g. LGA) together with an evaluation circuit – the ASIC.

MEMS sensors are indispensable in vehicles and electronic devices today. The first versions were used in motor vehicles as pressure sensors and accelerometer. Over time, the largest technology driver for MEMS changed from automotive applications to consumer electronics – dominated by smartphones. Beyond that, MEMS sensors have become the heart of whole classes of new devices like fitness trackers, smart watches, virtual reality glasses and smart sensor nodes for the Internet of Things (IoT).

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