Highlights:

  • Bosch disclosed that it intends to invest USD 1.5 billion in the modernization of TSI’s production lines.
  • The acquisition of TSI will allow the company to expand its automotive operation and expand its presence in additional markets.

Robert Bosch GmbH announced its intention to acquire TSI Semiconductors, a leading manufacturer of silicon carbide chips recently.

The price of acquisition was not disclosed. However, Bosch disclosed that it intends to invest USD 1.5 billion in the modernization of TSI’s production lines. According to the corporation, the investment will be contingent on federal funding opportunities and state economic development initiatives.

TSI manufactures silicon carbide chips, a compound that combines silicon and carbon. The material enables chips to withstand higher voltage levels and temperatures than conventional semiconductors. Consequently, the technology is extensively utilized in systems such as electric vehicles that must operate reliably under demanding conditions.

When current travels through a semiconductor, a portion of it is lost. Silicon carbide chips are more efficient than conventional semiconductors because they lose less current. The technology enables manufacturers to increase the range of electric vehicles and facilitate more efficient charging.

Germany-based Bosch is a significant supplier of automotive components. The acquisition of TSI will allow the company to expand its automotive operation and expand its presence in additional markets. Silicon carbide chips are utilized not only in electric vehicles, but also in the industrial equipment industry, where Bosch is a leader.

Stefan Hartung, Bosch Chief Executive Officer said, “With the acquisition of TSI Semiconductors, we are establishing manufacturing capacity for SiC chips in an important sales market while also increasing our semiconductor manufacturing, globally. The existing clean-room facilities and expert personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale.”

The USD 1.5 billion investment Bosch intends to make following the acquisition will be used to enhance TSI’s premier chip fab in Roseville, California. The organization intends to implement “state-of-the-art processes” for manufacturing. This facility will have approximately 107,000 square feet of cleanroom space, or space suitable for semiconductor manufacturing equipment, following the upgrade.

In addition, Bosch intends to renovate an existing silicon carbide manufacturing facility in Reutlingen, Germany. The company will increase the containment space at the factory from 376,000 square feet to more than 470,000 square feet.

Both the Reutlingen and Roseville facilities will manufacture silicon carbide wafers measuring 200 millimeters in diameter. These wafers, which are also being used by several competing semiconductor manufacturers, make chip production more effective. By late 2025 or early 2026, the two fabs are anticipated to commence production.

The acquisition of TSI will allow Bosch to enter a rapidly expanding market. According to the corporation, the annual growth rate for silicon carbide semiconductor demand is 30%. By 2025, Bosch anticipates that each vehicle for which it supplies components will contain approximately 25 of its in-house developed processors.