Why SiC Chips Are a Key Link in US Reindustrialization: The Power Semiconductor Industry Upgrade Path as Seen from Bosch's CHIPS Funding

Why has SiC suddenly become a focus of US industrial policy?

Silicon carbide (SiC) chips are not traditional logic chips; they are the "new darling" of the power semiconductor field. Compared to traditional silicon-based devices, SiC can withstand higher voltages and temperatures, and has higher switching efficiency, making it ideal for electric vehicle inverters, charging piles, industrial power supplies, and other applications.

The United States has invested heavily in logic chips (e.g., Intel, TSMC's Arizona fab), but in the power semiconductor field, the global market has long been dominated by Europe (Infineon, STMicroelectronics) and Japan (Rohm, Mitsubishi). US domestic power semiconductor production capacity is weak, especially for automotive-grade SiC chips, which are almost entirely imported.

Bosch's transformation of its 40-year-old silicon wafer fab in Roseville into a SiC production line, and its commitment to commercial production of 200mm wafers by 2026, is precisely targeting this gap. The $225 million subsidy from the CHIPS Act (11% of the total investment) accelerated this decision, indicating that the US government is actively using industrial policy to correct supply chain shortcomings.

Which industries will directly benefit?

1. Electric Vehicle and Hybrid Vehicle Manufacturers

SiC chips directly affect the range and charging speed of electric vehicles. Bosch's third-generation SiC chips offer a 20% performance improvement and smaller size, helping automakers reduce battery costs and enhance vehicle competitiveness. Domestically supplied SiC chips in the US will reduce dependence on Asian suppliers, particularly benefiting the North American factories of automakers like Tesla, General Motors, and Ford.

2. Industrial and Energy Infrastructure

Solar inverters, energy storage systems, industrial motor drives, etc., also rely on efficient power devices. With the acceleration of renewable energy installation in the US and urgent grid upgrade needs, domestic SiC production capacity will enhance the resilience of the entire energy transition industrial chain.

3. Semiconductor Equipment and Materials Suppliers

Production of 200mm SiC wafers requires specialized equipment (such as high-temperature ion implantation, etching) and substrate materials. US equipment suppliers (such as Applied Materials, Lam Research) and material suppliers (such as Coherent, II-VI) will benefit from the expansion demand.

Which industries may face pressure?

1. Traditional Silicon-Based Power Semiconductor Suppliers

SiC is accelerating the replacement of silicon-based IGBTs, especially in medium- and high-voltage applications. Domestic US silicon-based power device manufacturers (such as Onsemi, some product lines of Texas Instruments) may lose market share if they fail to transition in time.

2. US Automakers Dependent on Imported SiC Chips

In the short term, domestic capacity has not yet ramped up, so automakers still need to source from Europe or Japan. But in the long run, domestic supply will lower import prices and weaken importers' bargaining power.

3. Asian SiC Foundries

For example, China's Tianyu Xianjin and Taike Tianrun, etc. The US, by supporting domestic capacity through the CHIPS Act, will reduce the demand for Asian foundries and squeeze their market space.

Profound Significance for US ManufacturingThis is not just a single factory upgrade, but a typical microcosm of the US "reindustrialization":

• Policy-driven: The CHIPS Act not only supports logic chips but also leans towards power semiconductors, proving that the US is systematically strengthening each chip category.
• Jobs and skills: The Roseville plant retained its original employees and trained them in SiC processes, demonstrating that industrial reshoring can rely on existing skilled workers rather than starting from scratch.
• Supply chain resilience: Once Roseville begins mass production, the US will have its own automotive-grade SiC chip production capacity for the first time, significantly enhancing its ability to withstand supply chain disruptions.

Implications for Corporate Investment

The Bosch case shows that foreign companies (Bosch is a German company) are also actively seeking US subsidies and building factories in the US. This sends a signal that the US is becoming one of the global manufacturing hubs for power semiconductors. Other European and Japanese power semiconductor companies (such as Infineon and Rohm) are likely to follow suit in applying for CHIPS funding and accelerating their deployment in the US.

Outlook for the US Industrial System over the Next Five Years

• 2026–2027: Roseville's 200mm SiC wafer production commences, marking the first time the US achieves domestic supply of automotive-grade SiC.
• 2028–2030: More SiC factories (such as Wolfspeed and the STMicroelectronics-Sanan joint project) are established in the US, creating a cluster effect.
• Supply chain restructuring: The US will shift from net imports to partial self-sufficiency in power semiconductors, and may even begin exporting.
• Technology competition: After the widespread adoption of third-generation SiC chips, GaN (gallium nitride) may become the next focus, and US policy is likely to follow suit.

In summary, although Bosch's Roseville project involves only a $200 million investment, it heralds a core shift: through industrial policy, the US is building its own capacity in the most critical power semiconductor segment for electric vehicles. This not only changes the mission of one factory but will also reshape the global power semiconductor supply chain landscape.