German engineering and technology company Bosch has confirmed the purchase of US chipmaker TSI Semiconductors. Also the plans that he has for the company after the operation, which involve investing 1,500 million dollars in its California factory. Currently, TSI has a staff of 250 employees and facilities specialized in the development of integrated circuits for specific applications (ASICs).
Specifically, it is primarily engaged in the development and production of large volumes of chips for applications in the mobility, telecommunications, energy, and life sciences sectors.
With this step, Bosch expands its commitment to chip manufacturing worldwide. This is an area of great importance for them, since Bosch is the largest manufacturer of automobile components, and this is precisely one of the sectors most affected by the shortage of chips, which has been squeezing sectors such as the automotive and electronics.
Thanks to the announced investment, the TSI factory in Roseville (California) will undertake a modernization and restructuring plan, with the aim of getting it to start producing silicon carbide chips by 2026. Bosch expects an annual increase in demand for this type of chips, commonly used in energy management, and very beneficial for electric cars, 30%. Hence his investment plans for the company.
Apart from the investment plans in the factory, the financial terms of the purchase of TSI are unknown, since neither company has provided them. Of course, Bosch has also warned that the total value of the investment it will make in the TSI facilities depends to a large extent on the financing opportunities offered by the US federal government.
Bosch’s investment follows increased calls by the US government to boost local chip production, a move that has also led members of Congress to pass favorable measures to support it. As for Bosch, the purchase of TSI means deploying a third pillar for its semiconductor business, after taking the decision to develop and expand its two semiconductor manufacturing facilities, in the German towns of Dresden and Reutlingen.
Stefan Hartung, Chairman of the Bosch Management Boardhas highlighted that «With the purchase of TSI Semiconductors, we gained facilities to manufacture SiC chips in an important sales market, while increasing our global semiconductor sales. Existing clean room facilities and knowledgeable staff in Roseville will allow us to manufacture SiC chips for electromobility on an even larger scale.«.
For his part, Markus Heyn, President of Bosch Mobility Solutionsalso stresses that “the Roseville facility has been around since 1984. For nearly 40 years, the American company has developed a wealth of expertise in semiconductor production. We will now integrate this experience into the Bosch semiconductor manufacturing network.«.
