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Bosch buys U.S. chipmaker TSI Semiconductors to expand silicon carbide production capacity in the U.S.

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Update time : 2023-04-27 11:43:05
        Germany's Bosch Group has agreed to acquire key assets of California-based chipmaker TSI Semiconductors, with plans to expand its production of silicon carbide chips for electric vehicles in the United States, Reuters reported.
 
 
        Bosch and TSI did not announce a purchase price, according to the report. Bosch said it plans to invest $1.5 billion to revamp TSI's chip production facility in Roseville, California, in order to start producing silicon carbide chips by 2026. 
        The investment "will rely heavily" on federal funding opportunities provided by the CHIPS Act and state subsidies, Bosch said in a statement. In addition, Bosch said the plant will be the "third pillar" of semiconductor production within Bosch, with the other two pillars being plants in Germany. 
        Bosch noted that the silicon carbide chips it will produce at TSI's Roswell plant will provide longer range and faster charging for electric vehicles, and will therefore be in growing demand in the electric vehicle segment. According to Bosch, market demand for silicon carbide semiconductors is growing at a rate of 30 percent a year. 
        Like other companies in the automotive industry, Bosch has been heavily affected by semiconductor production disruptions over the past two years, and the New Crown epidemic has exacerbated this negative impact. The semiconductor shortage has now eased, but not completely disappeared, and Bosch's automaker customers have been seeking safer and more diverse sources of chips. 
        Rising demand has also brought a surge in chip investment. U.S.-based Wolfspeed is building new silicon carbide chip plants in New York state and Germany. ON Semiconductor is also investing heavily in silicon carbide and has signed a strategic agreement with the Volkswagen Group to supply modules and semiconductor devices for the group's next-generation platform family.


 
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