Bosch has started sample production of silicon carbide semiconductors at its Roseville, California facility, the company announced on July 13, marking the first time the world’s largest automotive supplier has manufactured chips on US soil. The milestone arrives alongside a definitive agreement with the Trump Administration that unlocks up to $225 million in direct funding from the Department of Commerce’s CHIPS Program Office toward a total planned investment of up to $2 billion to transform the Roseville site into a state-of-the-art silicon carbide semiconductor production facility.
What the Roseville plant will produce
The Roseville facility represents Bosch’s first semiconductor production site in the United States and will produce commercial chips on 200-millimeter wafers based on Bosch’s SiC technology in 2026. In the near future, Bosch plans to manufacture third-generation silicon carbide chips in Roseville. Those 200-millimeter wafers are widely used in power semiconductor manufacturing for their cost-effectiveness and higher production volumes.
Silicon carbide semiconductors are increasingly critical because they operate more efficiently under high voltages and temperatures than conventional silicon chips. Silicon carbide chips help to enable greater range and more efficient recharging in battery-electric vehicles and plug-in hybrid vehicles. Silicon carbide also has potential uses in industrial energy applications, since SiC chips enable higher-efficiency, higher-power conversion with less heat and smaller components.
Federal funding and the CHIPS Act deal
The Department of Commerce’s CHIPS Program Office announced the signing of a Direct Funding Agreement with Robert Bosch Semiconductor LLC 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 into a state-of-the-art silicon carbide semiconductor production facility.
Paul Thomas, president and CEO of Bosch in North America, said the start of sample production and the Department of Commerce agreement represent “a milestone in providing our local customers with what they have requested, localized U.S.-based manufacturing.”
The Roseville site has also received a California Competes Tax Credit incentive from the Governor’s Office of Business and Economic Development to support redevelopment and investment in Roseville.
From acquisition to production in three years
In April 2023, Bosch announced its intention to acquire the assets of an existing wafer fab in Roseville; the acquisition closed in August 2023. Rather than building a new manufacturing site from the ground up, Bosch accelerated deployment by modernizing the existing fab and retaining its experienced workforce. The facility, which has more than 40 years of experience in semiconductor manufacturing, is undergoing a profound evolution into a facility that produces and tests SiC semiconductors with state-of-the-art processes and equipment.
The Roseville site previously produced standard silicon-based semiconductors for automotive and industrial applications. The transition to silicon carbide requires replacing most of the site’s equipment and machinery, though existing cleanroom facilities and a specialist workforce allow Bosch to make that switch relatively quickly.
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.
Why the timing matters for automakers
The Roseville ramp comes as automakers face growing cost pressure from the chips that power modern vehicles. Ford CFO Sherry House has warned that AI-driven DRAM chip prices will add roughly $1 billion to the company’s costs in 2026.
DRAM makers have been shifting capacity toward AI data centers, leaving automotive systems increasingly exposed; automotive LPDDR4 prices rose roughly 70% year over year by January 2026, with additional increases signaled for 2026 and 2027 as supply for older generations tightens. Data centers have become the dominant buyer of DRAM globally, and when that share grows, automotive customers have limited alternatives. Domestic SiC production does not resolve the DRAM crunch directly, but it addresses a parallel vulnerability in the power semiconductor chain that underpins EV drivetrains.
Those cost pressures have already filtered through to the retail market, keeping nearly-new EVs among the used market’s most dramatic bargains as lease returns pile up, while new-vehicle pricing trends remain closely tied to the wholesale auction index that shapes every used-car sticker price.
Silicon carbide semiconductors are essential components to the automotive, industrial, energy, and consumer appliance industries. Commercial production is expected to begin in 2026, roughly three years after Bosch acquired the Roseville site.
