Bosch to acquire TSI Semiconductors to boost US chip production

Bosch will acquire the assets of U.S. chipmaker TSI Semiconductors to expand its semiconductor business with silicon carbide chips (SiC), the German engineering and technology giant said Wednesday.

Bosch also said that following the acquisition, it will invest $1.5 billion over the next few years to upgrade TSI Semiconductors’ manufacturing facilities in Roseville, California. Starting in 2026, the first chips will be produced on 200-millimeter wafers based on silicon carbide.

News of more chips being produced on U.S. soil is welcome in the automotive world, one of the industries most affected by the global semiconductor shortage that began with the COVID-19 pandemic. The shortage started when factories shut or slowed production due to lockdowns, thus disrupting global supply chains. A surge in demand for electronics as people stayed inside, as well as a boom in demand from an automotive industry determined to go electric and build smarter vehicles, only exacerbated the problem.

Electric vehicles on average use more chips than their gas-powered counterparts, and most new EVs hitting the market today promise advanced driver assistance systems and high-tech infotainment systems. As a result, in 2021, the average car had about 1,200 chips, twice the number in 2010, and a figure that will likely increase.