Business
SkyWater to Acquire Infineon’s Austin Fab and Establish Strategic Partnership to Expand U.S. Foundry Capacity for Foundational Chips
Transaction strengthens U.S.-based production of essential chips for industrial, automotive and defense applications SkyWater plans to expand 200 mm
About this update from Skywater Technology, Inc.
[{"type":"text","content":"\n\nTransaction strengthens U.S.-based production of essential chips for industrial, automotive and defense applications\n\n\n\nSkyWater plans to expand 200 mm capacity, technology offerings and capabilities while supporting U.S.-based dual-sourcing strategies in critical industries\n\n\n\nLong-term supply agreement ensures Infineon a continued high-volume manufacturing base in the U.S.\n\n\n\n BLOOMINGTON, Minn. & MUNICH, Germany--(BUSINESS WIRE)--\nSkyWater Technology (Nasdaq: SKYT) has entered into an agreement with Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) for SkyWater to purchase Infineon’s 200 mm fab in Austin, Texas (“Fab 25”) and a corresponding long-term supply agreement. SkyWater will operate the fab as a foundry, increasing available capacity in the U.S. for foundational chips on nodes from 130 nanometers down to 65 nanometers that are critical for many industrial, automotive and defense applications. Fab 25 will also substantially increase SkyWater’s scale as a foundry and provide additional capabilities such as 65 nm infrastructure, expanded copper processing scale and high-voltage Bipolar-CMOS-DMOS (BCD) technology. The long-term supply agreement will enable Infineon to maintain a strong, efficient and scalable manufacturing footprint in the United States.\n\n\nInfineon and SkyWater believe that this strategic partnership will enhance the long-term viability and utilization of Fab 25. The transaction also affirms the long-term perspective for nearly 1,000 manufacturing jobs at Fab 25, since all current Fab 25 employees will become SkyWater employees as part of the agreement.\n\n\nSkyWater is a U.S.-based company with access to a broad customer base and a Trusted supplier of the U.S. Department of Defense. SkyWater believes the transaction will allow it to realize significant economies of scale, bring high-value manufacturing services to SkyWater’s customers and support dual sourcing strategies for critical industries. Furthermore, SkyWater plans to transition the Fab 25 business model from Integrated Device Manufacturer (IDM) to foundry to bring substantial manufacturing capacity to a broad base of new customers over time. Foundational semiconductors are of strategic importance for several U.S. industries, including the defense sector. The partnership will strengthen the industrial base and domestic semico...