Chip subsidy: US strikes $225 million deal with Bosch

WASHINGTON: The US Commerce Department said Friday it reached a preliminary deal with German auto supplier Bosch for up to $225 million in subsidies to build silicon carbide power semiconductors in California that are key for electric vehicles.

The department said the funding will support Bosch's planned $1.9 billion investment to transform its manufacturing facility in Roseville, California for production of SiC power semiconductors. Commerce is also offering Bosch approximately $350 million in proposed government loans for the project.

The department is tapping the $52.7 billion fund to subsidise US semiconductor production and research approved in 2022.


Officials have been racing to finalise terms for major loans in the weeks before President-elect Donald Trump takes office.

Bosch expects to produce its first chips on 200-millimeter wafers in its Roseville facility starting in 2026. SiC chips are key components for automotive, telecommunications, and defense industries.