By Nora Eckert
DETROIT, July 13 (Reuters) - German auto component and chip maker Bosch is beginning sample production at its first U.S. semiconductor factory, the company said Monday, finalizing a $225 million agreement with the U.S. Commerce Department to strengthen domestic manufacturing of silicon carbide chips.
Some automakers and parts suppliers have expanded manufacturing in the United States under President Donald Trump, seeking to avoid costly tariffs and protect against geopolitical disruptions. Chip shortages sparked industry-wide turmoil during COVID-19, exposing the sector's heavy dependence on a small group of suppliers in Europe and Asia.
Bosch bought the chip plant in Roseville, California in 2023 from TSI Semiconductors and reconfigured it, at a total cost of $2 billion including the Commerce Department funds, and will begin commercial production later this year.
Paul Thomas, president and CEO of Bosch in North America, told Reuters that the U.S.-Mexico-Canada Agreement on trade was part of the reason Bosch had increased its investment in the U.S. chip sector, as companies there seek more developed domestic supply chains.
DETROIT, July 13 (Reuters) - German auto component and chip maker Bosch is beginning sample production at its first U.S. semiconductor factory, the company said Monday, finalizing a $225 million agreement with the U.S. Commerce Department to strengthen domestic manufacturing of silicon carbide chips.
Some automakers and parts suppliers have expanded manufacturing in the United States under President Donald Trump, seeking to avoid costly tariffs and protect against geopolitical disruptions. Chip shortages sparked industry-wide turmoil during COVID-19, exposing the sector's heavy dependence on a small group of suppliers in Europe and Asia.
Bosch bought the chip plant in Roseville, California in 2023 from TSI Semiconductors and reconfigured it, at a total cost of $2 billion including the Commerce Department funds, and will begin commercial production later this year.
Paul Thomas, president and CEO of Bosch in North America, told Reuters that the U.S.-Mexico-Canada Agreement on trade was part of the reason Bosch had increased its investment in the U.S. chip sector, as companies there seek more developed domestic supply chains.
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