Germany’s Bosch Group has acquired TSI Semiconductors, a California-based chip manufacturer, to bolster its presence in the chip industry.

This move aims to secure a foothold in the U.S. for silicon carbide chips that enhance EV performance.

In April, Bosch unveiled plans to invest $1.5 billion to revamp TSI’s Roseville, California facility for silicon carbide chip production under the banner of ‘Robert Bosch Semiconductor LLC,’ scheduled to commence operations in 2026. The purchase price remains undisclosed.

This acquisition transforms TSI into Bosch’s third pillar for in-house semiconductor production, alongside two German facilities.

Paul Thomas, incoming president of Americas for Bosch Mobility, emphasized the strengthening of local presence in the high-efficiency electronic solutions market through this semiconductor expansion.

Funding for this endeavor heavily relies on federal support under the CHIPS act and state subsidies, Bosch noted.

Just like other auto manufacturers, Bosch faced disruptions in semiconductor production due to the pandemic and Asian supply chain issues. 

The semiconductor scarcity continues to pose challenges, prompting automakers to seek stable chip sources.

The silicon carbide chips produced at the TSI Roseville site meet surging demand from EV manufacturers. These chips offer a superior driving range and quicker recharging capabilities.

Bosch underscores a 30% annual growth in demand for silicon carbide semiconductors, highlighting the burgeoning interest in advanced chip technology.