Bosch has secured a definitive agreement with the U.S. Department of Commerce for up to $225 million in direct funding to support a $2 billion investment in its Roseville, California site for silicon carbide (SiC) semiconductor production. The funding, provided through the Department of Commerce's CHIPS Program Office, will facilitate the transformation of the Roseville facility into a center for SiC chip manufacturing. This strategic move aims to bolster supply chain resiliency for automotive manufacturers and industrial energy applications by localizing production in the U.S.

The Roseville facility has commenced sample production of SiC semiconductors. Bosch intends to launch commercial manufacturing in 2026, producing chips on 200-millimeter wafers based on its proprietary SiC technology. This timeline marks a rapid expansion, coming just three years after Bosch acquired the wafer fab assets in Roseville in August 2023. The company has accelerated its time-to-market by leveraging the site's existing infrastructure and the expertise of its U.S.-based manufacturing associates.

Investment and Operational Strategy

Bosch's investment in Roseville includes the development of new cleanroom space and a high-tech manufacturing line. The company has maintained employment throughout the transformation process and invested in training for associates. The Roseville site represents Bosch's first semiconductor production location in the United States and is one of 20 facilities the company operates with manufacturing capabilities in the country.

Strategic Importance of Silicon Carbide

Silicon carbide chips are critical for electric and next-generation mobility systems due to their ability to handle high voltages, high temperatures, and fast switching efficiently. Bosch plans to manufacture its third-generation SiC chips in Roseville, which deliver up to 20 percent higher performance compared to the previous generation. The company has already delivered more than 60 million SiC chips worldwide since production began in 2021. Beyond automotive applications, these chips have potential uses in industrial energy sectors, including data centers, where they support higher-efficiency power conversion and reduced cooling demands.

Broader U.S. Commitment

The Roseville investment is a component of Bosch's long-term strategy in the United States. The company plans to invest up to $7.5 billion across its U.S. operations over the next five years as it approaches its 125th anniversary of operations in the country in 2031. Bosch currently employs around 10,000 associates in U.S. manufacturing operations and approximately 38,000 associates across North America. In 2025, the company generated consolidated sales of $18.8 billion in the U.S., Mexico, and Canada.

Bosch Ltd has scheduled its 74th Annual General Meeting for August 11, 2026, to seek shareholder approval for a final dividend of ₹270 per equity share for the financial year ended March 31, 2026. The meeting will be held at 11.00 a.m. IST at Trinity Hall, Taj MG Road in Bengaluru. The record date to determine shareholder entitlement for the dividend is August 4, 2026, with payments scheduled on or after August 14, 2026, subject to approval at the AGM.

Remote E-Voting and Key Dates

The company has provided remote e-voting facilities for members holding shares in physical or dematerialized form as of the cut-off date of August 4, 2026. Remote e-voting commences on August 7, 2026, at 9.00 a.m. IST and concludes on August 10, 2026, at 5.00 p.m. IST. Shareholders who cast votes remotely may attend the AGM but cannot vote again at the venue. The notice and annual report were dispatched electronically on July 10, 2026.

Tax Deduction for Resident Shareholders

Under the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders. For resident individuals with a valid PAN, the applicable withholding tax rate is 10%. If the PAN is not registered or is invalid, the rate increases to 20%. Resident individuals may submit a declaration in Form 121 to claim a NIL tax rate, provided eligibility conditions are met. Dividends up to ₹10,000 in FY 2026-27 are exempt from TDS for resident individuals.

Tax Deduction for Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), are subject to a TDS rate of 20% plus applicable surcharge and cess, or the tax treaty rate, whichever is lower. To avail of the lower tax treaty rate, shareholders must submit documents such as a Tax Residency Certificate (TRC), e-filed Form 41, and a self-declaration confirming beneficial ownership and the absence of a Permanent Establishment in India.

Key Deadlines and Documentation

Shareholders must submit necessary documents, such as PAN updates or tax exemption forms, to the company's Registrar and Transfer Agent, M/s. Integrated Registry Management Services Pvt Ltd, via the shareholder web portal by July 27, 2026. The company emphasized that it is not obligated to apply beneficial tax treaty rates if documentation is incomplete. TDS certificates will be emailed to shareholders post-payment, and credits will be available in Form No.168 on the income tax e-filing portal.

Table: Applicable Withholding Tax Rates