German technology giant, Bosch Group, has announced its acquisition of TSI Semiconductors’ commercial semiconductor business, in addition to investing $1.5 billion to expand the US production of silicon carbide chips. The deal will allow Bosch to increase its output of chips for electric vehicles, which use silicon carbide chemistry to enable greater driving range and faster recharging.
Bosch’s Latest Investment
Bosch’s $1.5 billion investment is expected to significantly boost its production of silicon carbide chips by retooling TSI’s chip production facilities in California. The new chips will help reduce carbon emissions, enhance driving performance, and speed up the adoption of electric vehicles, Bosch said.
The CHIPS Act
The investment by Bosch is heavily dependent on federal funding opportunities through the CHIPS act, which provides funding to boost semiconductor production in the US. The funding will help Bosch to create new jobs, stimulate the economy, and boost the production of chips needed for EVs.
Silicon Carbide Chip Production
Bosch’s investment in silicon carbide chip production follows a global surge in investment in the technology. U.S-based Wolfspeed Inc is building new plants to make silicon carbide chips in New York State and Germany, and Onsemi Corp is also investing heavily in silicon carbide, having signed a strategic agreement with Volkswagen AG to supply chips to the automaker.
Why Silicon Carbide Chips Matter
Silicon carbide chips are increasingly popular with electric vehicle manufacturers due to their high performance and efficiency. The chips are in high demand because they enable greater driving range and faster recharging, making them critical to the growth of the EV market.
The Impact on Automotive Manufacturers
Like other automotive manufacturers, Bosch has been severely impacted by disruptions to semiconductor production in Asia over the past two years, exacerbated by the COVID-19 pandemic. The shortage of chips has led automakers to look for more secure and diversified sources of supply, and this has prompted Bosch to expand its production capacity.
In Summary
Bosch’s acquisition of TSI Semiconductors and its investment of $1.5 billion to expand silicon carbide chip production is expected to significantly boost the production of chips for EVs in the US. This latest investment is heavily dependent on federal funding opportunities and will allow Bosch to increase its production of chips, reduce carbon emissions, and enhance driving performance.
