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Robert Bosch GmbH, or simply Bosch, has agreed to acquire the California-based chipmaker TSI Semiconductors. The German multinational engineering and technology firm will also invest about $1.5 billion to expand the production of silicon carbide chips for EVs.
The investment will also be used for the construction of a new plant for the manufacturing of chips for electric vehicles. According to Reuters, while Bosch revealed its plans for a $1.5 billion investment, it did not disclose the price for the purchase of TSI Semiconductors.
In addition, the company will equip the production facilities in Roseville, California, with the latest equipment and tools needed for producing the silicon carbide chips. Once it has retooled the plant, the company will then begin the manufacturing of carbide chips by 2026.
This type of chip is currently in demand as car makers are shifting to the production of electric vehicles. In fact, Bosch mentioned that the demand is going up by 30% every year.
At any rate, the tech firm said that along with two other facilities in Germany, TSI Semiconductor’s plant would become the "third pillar" of its in-house chip production. The EV chips that it will make are going to be manufactured at the TSI Roseville site.
The said site is currently a foundry for application-specific integrated circuits (ASICs), which are applied in different industries. Bosch’s plan is to buy the buildings, equipment, and infrastructure of TSI and its commercial chip business.
“With the acquisition of TSI Semiconductors, we are establishing manufacturing capacity for SiC chips in an important sales market while also increasing our semiconductor manufacturing, globally,” Bosch board of management chairman, Dr. Stefan Hartung, said in a press release. “The existing clean-room facilities and expert personnel in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale.”
