Bosch to acquire TSI Semiconductors for $1.5B to boost US chip production
- In February, the Biden administration launched the first CHIPS for America funding opportunity, a $50 billion injection to revitalize the semiconductor industry, including $39 billion in semiconductor incentives.
- 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 administration said the first funding opportunity seeks “applications for projects to construct, expand or modernize commercial facilities for the production of…semiconductors.”Bosch and TSI Semiconductors are not sharing the terms of the acquisition, which is subject to regulatory approval.
- 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.To combat chip shortage, Bosch to invest $296M to produce semiconductorsSiCs, which Bosch’s new factory will produce, have been a hot commodity among automakers, as well.
- The company has been producing semiconductors for over 60 years and has invested billions of euros into the business globally, specifically at its wafer fabs in Reutlingen and Dresden, Germany.Correction: The headline has been changed because it inaccurately described the acquisition as a $1.5 billion deal.
- The $1.5 billion is the additional investment the company is making into the facility.GM locks in exclusive US semiconductor chip production with GlobalFoundries
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. [+3473 chars]