German-based Bosch Group has purchased key assets of TSI Semiconductors, a California-based chip manufacturer.
According to Reuters, neither Bosch nor TSI disclosed a purchase price for the deal.
However, Bosch did confirm they plan to invest $1.5 billion to retool TSI’s chip production facility in Roseville, California. The retool will allow the facility to produce 200-millimetre wafer silicon carbide chips for EVs by 2026. These silicon carbide chips are in high demand as the chemistry will give EVs greater range and faster recharging.
The plan for Bosch is for the Roseville facility to be the third pillar of its semiconductor production capability. Currently, the company has two other semiconductor facilities in Germany.
In a statement, Bosch did note the investment will depend on financial funding through the CHIPS Act and state subsidies. Chairman of the Bosch Board of Management, Dr Stefan Hartang, had this to say about the acquisition:
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.
Currently, the TSI Semiconductor facility is a foundry for application-specific integrated circuits that are used in various facilities. However, the retooling should not be too complicated with the clean room space and much of the same manufacturing machines and infrastructure already on the ground.
