A major German tech conglomerate has announced plans to acquire TSI Semiconductors in Roseville, transforming the locally owned circuit manufacturer within the next few years into a facility that will make state-of-the-art chips used in electric vehicles.
Robert Bosch GmbH, a multinational company headquartered in Gerlingen, Germany, said in a news release Wednesday that it would transform the TSI Semiconductors site at 7501 Foothills Blvd. into the “third pillar” of its semiconductor manufacturing operation, joining its two existing facilities in Reutlingen and Dresden.
The planned acquisition marks a potentially immense economic boost for Roseville, a suburban city of about 150,000 people 20 miles northeast of Sacramento that is already one of California’s fastest-growing: Bosch said it intends to invest $1.5 billion into its new California property.
It will also represent one of the first major projects in California since the passage of federal legislation last year that dedicated hundreds of billions of dollars to semiconductor manufacturing growth on U.S. soil.
“This $1.5 billion investment will bring down costs, strengthen our electric vehicle supply chain, help rebuild American manufacturing and create economic opportunity for the working families of California,” Vice President Kamala Harris said in a statement to McClatchy News. “And it will put more electric vehicles on the road, a priority I have worked for since I served in the United States Senate.”
Stefan Hartung, chairman of Bosch’s board of management, said in a statement that “existing cleanroom facilities and expert personnel in Roseville” will form a foundation for the company to scale up development and production of silicon carbide (SiC) chips, which are key components in modern electric vehicles. After “retooling” the existing location, Bosch anticipates it will begin producing SiC chips in Roseville by 2026.
“This historic investment is extremely impactful as the automotive industry works on electrifying mobility,” Barry Broome, CEO and President of the Greater Sacramento Economic Council, said in a statement. “As a region, we want to focus on expanding this industry to help build the supply chain as we continue to support future mobility.”
TSI Semiconductors has a manufacturing foundry with 150,000 square feet of “cleanroom” space along with its headquarters, both located in a campus on Foothills Boulevard near Roseville’s Pleasant Grove neighborhood, according to its website. Founded in 1984, the company currently produces application-specific integrated circuits used in various industries. After retooling, the Roseville site will use about 108,000 square feet of cleanroom space for SiC chip production, according to Bosch.
Bosch and TSI Semiconductors have agreed not to disclose financial details of the planned transaction.
To what extent Bosch’s $1.5 billion investment into its new U.S. foothold might translate into new jobs is not yet clear. “The full scope of the planned investment will be heavily dependent on federal funding opportunities available via the CHIPS and Science Act as well as economic development opportunities within the state of California,” Bosch said in Wednesday’s announcement.
