Bosch Acquires the US Chipmaker TSI Semiconductors

By: | May 25th, 2023

Image by Ranjat M from Pixabay

Bosch, the German technology and engineering company, acquired TSI Semiconductors, a California chip producer. Bosch also revealed plans to invest $1.5 billion in this U.S. company, for the production of silicon carbide (SiC) chips for Electric Vehicles (EVs), meaning that this investment will retool the TSI Semiconductors’ manufacturing facility in Roseville, California for the production of such chips. The exact purchase price was not disclosed. This investment presents Bosch’s additional expansion in the semiconductor manufacturing sector, as it already operates semiconductor manufacturing facilities in Germany, Mexico, Spain, Hungary, China, and Malaysia according to Bosch’s semiconductor manufacturing global network. Currently, the Roseville manufacturing site produces 200 mm silicon wafers that are used in a variety of industries, such as mobility, energy, and telecommunications. On the other hand, Bosch already produces SiC chips from 2021 at the Reutlingen site in Germany.

According to Bosch, the company will benefit from the CHIPS and Science Act, and “will be heavily dependent on federal funding opportunities”, in addition to state subsidies. Moreover, such chips enable longer driving range and faster recharging, and their demand is increasing in the EV manufacturing industry, growing by 30% per year according to Bosch. Additionally, Bosch expects an average integration of 25 of its chips in every new vehicle.

As said in a statement by the chairman of the Bosch board of management, Dr. Stefan Hartung, “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,”, adding that “The existing clean-room facilities and expert personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale.

Furthermore, the member of the Bosch board of management and chairman of the Mobility Solutions business sector, Dr. Markus Heyn, says that “SiC chips are a key component for electrified mobility. By extending our semiconductor operations internationally, we are strengthening our local presence in an important electric vehicle market.

Bosch will acquire the TSI Semiconductors’ infrastructure, together will the buildings and machines. The production will start by 2026, following a retooling phase, according to the announcement.


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