Bosch to Buy Chipmaker TSI, over $1.5 Billion investment in the industry
Silicon-carbide chip market is growing 30% a year, Bosch says
Robert Bosch GmbH is acquiring US chipmaker TSI Semiconductors and plans to invest more than $1.5 billion in its California foundry, expanding the German company’s global bet on chips.
German giant cites US chips act as a driver for the acquisition
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Bosch is acquiring US chipmaker TSI Semiconductors and plans to invest more than $1.5 billion in its California foundry, expanding the German company’s global bet on chips https://t.co/xPNuMrxHJb
— Bloomberg (@business) April 26, 2023
Bloomberg news on Bosch
The world’s biggest auto-parts supplier plans to retool and modernize TSI’s Roseville site with a target to start producing silicon carbide chips there from 2026, Bosch said Wednesday. The company expects 30% annual demand growth for this type of chip, commonly used in power management that’s beneficial to electric cars.
“We step into a market which is developing very fast,” Chief Executive Officer Stefan Hartung said in an interview with Bloomberg. “The new platforms of electric vehicles — it doesn’t matter where they are produced in the world — are mostly betting on silicon carbide technology.”
Bosch’s investment follows the US government stepping up calls and congress legislating to boost domestic chip production, as part of a push to bolster economic and national security. The purchase of TSI marks a “third pillar” for Bosch’s semiconductor business after decisions to build and scale up two sites in Germany in Dresden and Reutlingen.
