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Bosch Acquires TSI Semiconductors, Targets SiC Chip Production by 2026

published: 2023-05-05 9:30

Bosch, the German automotive chip giant, is set to acquire TSI semiconductors in response to growing demand from the EV market, international media reports. Although the acquisition amount remains undisclosed, Bosch has emphasized that the actual amount will depend on subsidies from US chip legislation.

TSI Semiconductors operates an 8-inch wafer fab in Roseville, California, employing 250 people and specializing in custom ASIC chip manufacturing. Following the acquisition, the facility will join Bosch’s two German wafer fabs as one of its three main pillars. SiC chip production at the California fab is scheduled to begin in 2026.

Stefan Hartung, Chairman of Bosch, stated that acquisition would allow the company to establish III-V semiconductor chip production capacity in key sales markets while simultaneously increasing its global semiconductor capacity. Bosch encountered chip shortages during the pandemic, which led the company to actively collaborate with automotive industry customers to promote more secure and diversified chip sources.

As demand for EV continues to surge, Bosch plans to produce SiC chips at its US facility, with expectations of annual growth reaching up to 30%. Other industry players are also expanding production: Wolfspeed is constructing new factories in New York state and Germany, while Onsemi is investing heavily and forming strategic partnerships with Volkswagen to supply automotive chips. To stay competitive and meet market demand, Bosch must continue to enhance its production capacity.

Bosch’s acquisition of TSI Semiconductors encompasses the company’s buildings, machinery, infrastructure, and commercial semiconductor business. Bosch plans to invest US$1.5 billion in factory renovations, with 8-inch SiC wafer production set to commence in a 10,000 ft2 cleanroom by 2026.

 (Image Source: TechNews Photos)

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