German engineering and technology firm Bosch has revealed its intent to get US-based chipmaker TSI Semiconductors and invest $1.5 billion over the next couple of years to tap the rising demand for chips internationally, specifically in the vehicle and electronic devices sector.
“With the acquisition of TSI Semiconductors, we are developing production capability for silicon carbide (SiC) chips in a crucial sales market while likewise increasing our semiconductor production, internationally,” Stefan Hartung, chairman of the Bosch board of management, said in a statement.Neither of the companies
disclosed the expense of acquisition or the terms.Silicon carbide semiconductors can operate at greater temperature levels, voltages, and frequencies compared to other semiconductors, making them more efficient for use throughout solar-powered devices, electric cars, aerospace applications, and other applications such as 5G. TSI Semiconductors, whose semiconductor plant is based in Roseville, California and employs about 250 people, generally develops and produces large volumes of chips on 200-millimeter silicon wafers for applications in the movement, telecoms, energy, and life sciences industries, the companies stated in a joint statement.Post the acquisition, Bosch plans to invest more than $1.5 billion in the Roseville website to
make it ready for producing SiC chips, the business said, including that the plant will start producing its first SiC chips in 2026, based upon 200-millimeter wafers after a retooling phase.”The existing cleanroom facilities and skilled personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale,”Hartung said, including that Roseville offers roughly 10,000 square meters of cleanroom space. Bosch considering demand for SiC chips in electric vehicles Bosch itself has developed expertise in SiC chips production and has
been churning them out at its Reutlingen location near Stuttgart, Germany.”In the future, Reutlingen will likewise produce them on 20200-millimeter wafers. By the end of 2025, the business will have extended its cleanroom space in Reutlingen from approximately 35,000 to more than 44,000 square meters, “the business said as part of the joint statement.Bosch’s acquisition and investment plans are based on the massive usage of SiC chips in electrical cars which are seeing huge adoption across the United States and other markets, according to Markus Heyn, another member of the Bosch board of management.By 2025, the business anticipates to have an average of 25 of its chips integrated in every brand-new vehicle.”The market for SiC chips is also continuing to grow quickly– by 30 percent a year typically,”the companies stated, adding
that SiC chips in electrical cars allow greater range and more efficient recharging, as they consume to 50 percent less energy. The silicon carbide chips can guarantee at least 6 percent greater range effectiveness compared to other silicon chips built with other products, the companies added.US-China chip war raves on Bosch’s choice to obtain the United States chipmaker comes at a time when the United States and China are locked in a battle of supremacy to dominate chip production and distribution globally.Both the United States and the European Union have signed particular Chips Acts into law, under which both the governing bodies devote funds to reinforce chip production in
their geographical boundaries.Bosch stated the full scope of its$1.5 billion financial investment into TSI’s Roseville plant”will be greatly based on federal financing opportunities offered via the CHIPS and Science Serve as well as economic development chances within the State of California.”The Biden … Source
