Robert Bosch plans to acquire a California microchip maker and invest around $1.5 billion in it to help meet growing demand for silicon carbide chips in electric vehicles, the world's largest parts supplier said Wednesday.
It will be Bosch's first U.S. chip plant. The move comes as the Biden administration tries to foster more microchip manufacturing here.
The supplier said it will acquire TSI Semiconductors in Roseville, California, near Sacramento, subject to regulatory approval. TSI employs about 250 people primarily in the production of chips on 200-millimeter silicon wafers for use in the automotive, communications, energy and life sciences industries, according to its website.
In a news release, Bosch said it planned to invest more than $1.5 billion in TSI's Roseville foundry to convert the 39-year-old building into a modern source of silicon carbide microchips for EVs by 2026.
Bosch did not disclose costs of the acquisition. It said the "full scope" of the investment is "heavily dependent on federal funding opportunities available via the CHIPS and Science Act, as well as economic development opportunities within the state of California."