Bosch wants to take over the American chipmaker TSI Semiconductors, the company reports on Tuesday. Bosch plans to invest $1.5 billion in the chipmaker over the next few years. Bosch will thus expand its production of silicon carbide chips.
Bosch and TSI do not specify a specific amount for the takeover. Bosch says it will invest $1.5 billion in TSI Semiconductors in the coming years as part of the acquisition. With this, the company wants to upgrade the TSI factory in Roseville, California. This investment should make the factory suitable for the production of state-of-the-art production techniques. It will be the ‘third pillar’ of the company, in addition to its locations in Dresden and Reutlingen.
Production must start from 2026 in the renovated TSI Semiconductors factory, writes Bosch. From then on, the company wants to produce silicon carbide chips on 200mm wafers. Silicon carbide is used, among other things, for chips intended for power electronics and is used in electric cars, among other things. The factory has approximately 10,000 square meters of cleanroom space.
The investment in the TSI Semiconductors chip factory is “highly dependent on government funding,” according to Bosch. By this, the company is referring to subsidies from the state of California and federal aid. The latter must be done through the American chip law that was introduced last year and releases billions of dollars in subsidies for the chip sector.
The acquisition still needs to be approved by regulators before it becomes final. When that will happen is unknown. Bosch does not say when it expects to complete the acquisition.