More jobs, more manufacturing coming to California

SACRAMENTO – Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and Bosch have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $225 million in proposed direct funding under the CHIPS and Science Act.

Along with the state match from a CalCompetes Tax Credit award last year, this proposed funding will support Bosch’s planned investment of $1.9 billion to transform its manufacturing facility in Roseville for the production of silicon carbide (SiC) power semiconductors.  This will significantly increase the company’s production capacity and support the expansion of Bosch’s largest SiC device factory globally, while creating up to 1,000 construction jobs and up to 700 manufacturing, engineering, and research and development jobs in California.

Investing in semiconductors and manufacturing is a key part of Governor Gavin Newsom’s building more, faster agenda delivering infrastructure and jobs across the state. Find projects building your community at build.ca.gov.

“California leads the nation in semiconductor innovation and next-generation microelectronics advancements. Thanks to the Biden-Harris Administration, this latest investment in the state’s semiconductor sector will ensure that federal dollars spur more private capital, bolstering California’s semiconductor manufacturing capabilities and ensuring we remain a global leader in technology innovation for decades to come.”

California’s semiconductor leadership

California has the world’s most complete semiconductor ecosystem, highlighted by unparalleled leadership in technology innovation and a deep commitment to fostering a diverse and skilled workforce.

The Golden State is home to more industry-leading companies than anywhere else in the country, with over 600 fabrication facilities, and has the highest number of jobs supported by the sector — 63,000, or 27% of the U.S. total. As recently as 2021, California attracted $23 billion in company-funded semiconductor research and development spending — more than 50% of the U.S. total. Additionally, more than 20% of all semiconductor utility patents in the last decade have come out of California.

This most recent CHIPS and Science Act award builds on a series of recent federal investments in California, along with $225 million in state investments to support job creation and training since 2022:

• National Semiconductor Technology Center (NSTC) Design & Collaboration Facility: Sunnyvale will be home to a first-of-its-kind research and development facility to boost U.S. semiconductor leadership around the world.

• Akash Systems: Akash is utilizing its “Diamond Cooling” technology to improve thermal management with AI-focused data centers. A proposed $18.2 million investment will support the construction of a 40,000-square-foot cleanroom space, creating over 400 new jobs in West Oakland.

• Applied Materials: Applied Materials is working on developing and scaling a disruptive silicon-core substrate technology for next-generation advanced packaging and 3D heterogeneous integration. $100 million in proposed investment will advance U.S. leadership in advanced packaging, in partnership with our world-class research institutions.

•  Infinera: Infinera is a vertically integrated semiconductor and telecommunications equipment manufacturer that has operated its U.S. fabrication and advanced test and packaging facilities for over 20 years. Millions in proposed funding will support the construction of a new, modernized fab with over 40,000 square feet of cleanroom space in San Jose.

California Jobs First in action

Last month, Governor Newsom unveiled the framework for the California Jobs First Economic Blueprint, which includes semiconductors and microelectronics as a strategic sub-sector that is ready for expansion, where additional investments (e.g., capital, infrastructure) could “bend the curve” to generate growth.

The Capital Region, which includes Roseville, has also identified the semiconductor industry as key to generating local jobs and fostering more sustainable economic growth.

Over the past few weeks, the Governor has been on a California Jobs First tour, visiting the Central San Joaquin, Kern County, Southern Border, and Capital regions, celebrating the work of the regional California Jobs First collaboratives.