Bosch factory in Roseville awarded $225 million in CHIPS funding

The semiconductor manufacturing facility in Roseville announced Monday a significant expansion, fueled by a $225 million direct funding from the U.S. Department of Commerce under the CHIPS and Science Act.

Bosch, the German-based manufacturing company, will receive this funding as part of their $2 billion investment to transform the former TSI facility, acquired in 2023, into a major U.S. production hub for silicon carbide chips.

The silicon carbide chip, according to the Greater Sacramento Economic Council President and CEO Barry Broome, is a technology that optimizes power for batteries, grids and supports decarbonization.

“The beauty of Bosch being in Roseville, first off, it opens up the German market to us because international markets follow their leaders in the other markets,” Broome said. “This product will go right down Main Street and help CARB [California Air Resources Board] and the California Energy Commission with their vision, they'll help PG&E with their vision, and obviously they're going to help SMUD with their vision.”

Broome said Bosch is part of a growing clean energy ecosystem that includes Peak Energy, which is the sodium-ion battery company that announced their first major factory in Sacramento. The batteries are said to be more environmentally friendly than lithium ion batteries.

He said Bosch chips can go into Peak Energy batteries.

“Between Bosch chips and Peak Energy batteries, Peak Energy batteries could be more dynamic, more sustainable, have longer life, improve optimization by 50%,” Broome said. “So imagine taking battery and storage products and improving their ability to optimize by 50%. The way we're going to solve climate change isn't through regulations.”

He added regulations have too many unintended consequences.

“It's going to be companies like Peak Energy and Bosch that are going to solve climate change because they're going to make a better product than carbon,” he said.

Congresswoman Doris Matsui, who helped co-write the original CHIPS and Science Act, played a key role in securing the federal funds for Bosch, which she said is paving the way for more manufacturing in the Sacramento region.

“This is developing an ecosystem so that we have advanced manufacturing at home, creates wonderful new jobs, and be able to have young people be trained in these jobs so that they really do have a job for the future,” Matsui said in an interview with CapRadio. “The fact of the matter is, it really advances more innovation and creativity. And we have a lot more workforce programs now that are tied into these new jobs, too.”

Roseville Mayor Krista Bernasconi called the federal agreement a “turning point" for the city, promising hundreds of jobs and major tech investment.

Bernasconi said the facility has more than 300 employees and she anticipates there could be more in the future. She said this is the largest semiconductor fabrication investment in California in 30 years.

“Our region needs these skilled jobs, and Bosch has been wonderful partners with us, with our higher education folks,” Bernasconi said. “They're working with Sierra College to make sure that we have engineers that are coming out of not only Sierra College but Sacramento State who can support their workforce.”

Bernasconi mentioned the city of Roseville has an advantage of operating their own utilities.

“A few months ago, the Roseville City Council put Bosch into its own tier,” she said. “They will be one of the largest customers for our utility, and that was also key to them locating to our city is our rates.”