German technology company Bosch has signed a preliminary agreement with the federal government for $225 million in financing to modernize a computer chip factory in Roseville.
The money from the CHIPS and Science Act would contribute to Bosch's $1.9 billion investment to enable production of silicon carbide power semiconductor chips for electric cars. According to the US Department of Commerce, up to 700 manufacturing and technology jobs are expected to be created, as well as 1,000 temporary construction jobs.
Bosch is also in discussions for loans under the CHIPS program of up to $225 million.
“The Roseville investment enables Bosch to produce silicon carbide semiconductors locally and support U.S. consumers on the path to electrification,” Paul Thomas, president of Bosch in North America, said in a statement.
Production of the chips is scheduled to begin in 2026.
“One of the core missions of the bipartisan CHIPS and Science Act is to make targeted investments across all areas of the semiconductor industry to accelerate innovation and expand U.S. technology leadership,” U.S. Commerce Secretary Gina Raimondo said in a statement.
Bosch agrees to a project labor agreement with the Building and Construction Trades Council of Sacramento-Sierra to provide child care for workers.
Over $25 billion of the more than $36 billion in CHIPS Act funding has been awarded. Last month, Sunnyvale was selected as the site for one of three National Semiconductor Technology Centers. It is expected to generate over $1 billion in research funding and create more than 200 jobs over the next decade.
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