Electrification boom drives demand for silicon carbide chips
Bosch is set to acquire U.S. based TSI Semiconductors in a move that will significantly expand its global portfolio of silicon carbide (SiC) chips by the end of 2030. The acquisition will further strengthen Bosch’s semiconductor business and help meet the growing demand for SiC chips, driven by the rapid expansion of electrification worldwide.
“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,”
Dr. Markus Heyn, member of the Bosch board of management and chairman of the Mobility Solutions business sector
Investing in the future of semiconductor technology
Bosch plans to invest over 1.5 billion USD in the Roseville, California site of TSI Semiconductors. This strategic investment will enable the conversion of the manufacturing facilities to state-of-the-art processes, with the first SiC chips expected to be produced on 200-millimeter wafers starting in 2026.
Electric cars as the driving force
The global boom and ramp-up of electrification have resulted in a massive demand for SiC chips, which enable greater range and more efficient recharging for electric vehicles. SiC chips are a crucial component for electrified mobility, helping to increase the possible range of electric vehicles by up to 6 percent compared to silicon-based chips.
Expanding Bosch’s Global Manufacturing Network
The acquisition of TSI Semiconductors will strengthen Bosch’s international semiconductor manufacturing network, adding to its existing locations in Reutlingen and Dresden, Germany. By the end of 2025, Bosch will have extended its clean-room space in Reutlingen to more than 44,000 square meters, allowing for increased production of SiC chips.
Meeting the growing demand for automotive chips
By 2025, Bosch expects to have an average of 25 of its chips integrated into every new vehicle. The market for SiC chips is expected to grow at an impressive rate of 30 percent annually, fueled by the accelerating expansion of electrification across the globe.
Bosch’s systematic investment in pivotal semiconductor technology
Bosch has been a pioneer in semiconductor technology for over 60 years, and its expertise in electronic and software engineering, along with microelectronics, gives it a competitive edge in the market. With a total investment of over 2.5 billion euros since 2010 in its Reutlingen and Dresden wafer fabs, Bosch is committed to driving innovation and growth in the semiconductor industry.
