US Secures $225M Chip Grants Deal with Bosch in Preliminary Agreement

Bosch has signed a preliminary memorandum of terms (PMT) with the US Department of Commerce to support the transformation of its production facility in Roseville, California. The proposed investment is up to $225 million, which will support the development of semiconductor manufacturing in the US. Bosch plans to invest up to $1.9 billion to transform the site into a facility that produces and tests silicon carbide (SiC) semiconductors. The site currently employs around 250 associates, who will receive advanced training to learn from other Bosch sites. The company has also invested locally to build up semiconductor expertise for the future. The proposed funding will help support the transformation of the site, which is expected to produce its first chips in 2026. The CHIPS and Science Act will provide Bosch with up to $225 million in direct funding and approximately $350 million in proposed loans. The company plans to claim the Advanced Manufacturing Investment Credit (CHIPS ITC) and has already received a $25 million California Competes Tax Credit incentive.