Driven by downstream fields such as new energy, 5G, and photovoltaics, the third-generation semiconductor industry represented by silicon carbide and gallium nitride is developing rapidly.
Bosch will receive US$225 million in chip subsidies to produce silicon carbide.
Recently, the U.S. Department of Commerce announced that it has reached a preliminary agreement with German automotive parts supplier Bosch. The United States plans to provide $225 million in direct funds and $350 million in loans to Bosch's wafer factory renovation project in California to help Bosch produce silicon carbide power semiconductors in California.
According to data, in 2023, Bosch acquired TSI Semiconductors and acquired ownership of the latter's 8-inch wafer factory in Roseville, California. It plans to spend $1.9 billion to transform the wafer factory into a silicon carbide production facility, with the goal of starting production in 2026. The U.S. Department of Commerce said that Bosch's semiconductor factory in California is expected to account for more than 40% of the U.S. silicon carbide chip manufacturing capacity when it is fully operational.
Bosch said silicon carbide helps achieve longer driving range and more efficient charging in electric vehicles and plug-in hybrid vehicles, thus providing consumers with affordable electric vehicle options. Bosch also plans to apply to the U.S. Treasury for advanced manufacturing investment credits equivalent to 25% of eligible capital expenditures.
Focusing on gallium nitride, GlobalFoundries receives US subsidies again.
In early December, GlobalFoundries' official website announced that the company had received another $9.5 million in funding from the United States to advance the production of silicon-based gallium nitride semiconductors at its plant in Essex, Vermont, USA.
After receiving the above funds, GlobalFoundries will continue to add new tools, equipment and prototype development capabilities to its gallium nitride IP product portfolio and reliability testing, and it will be closer to fully manufacturing 8-inch gallium nitride chips in Vermont.
In terms of business progress, in July this year, GlobalFoundries acquired Tagore Technology's GaN power product portfolio and established a power center in Kolkata, India. The center works closely with and supports GlobalFoundries' factory in Vermont, helping to promote GlobalFoundries' R&D and mass production in the field of GaN chip manufacturing.