Business
SkyWater Announces Proposed CHIPS Funding to Enhance Domestic Semiconductor Production and Capabilities
Federal investment of up to $16M and State of MN pledge of $19M expected to result in total outside CapEx investments exceeding $350M during this decade
About this update from Skywater Technology, Inc.
[{"type":"text","content":"\nFederal investment of up to $16M and State of MN pledge of $19M expected to result in total outside CapEx investments exceeding $350M during this decade\n\n\n BLOOMINGTON, Minn.--(BUSINESS WIRE)--\nSkyWater Technology (NASDAQ: SKYT), the trusted technology realization partner, announced that it has signed a preliminary memorandum of terms (PMT) valued at up to $16 million with the CHIPS for America program, which is administered by the U.S. Department of Commerce. This proposed funding would provide federal incentives to enhance production capabilities at SkyWater’s Minnesota facility.\n\n\nThis funding through the CHIPS Act will accelerate modernization and equipment upgrades to enhance production for customers in the aerospace and defense as well as biomedical, industrial, thermal imaging and quantum computing markets. As a Department of Defense (DOD) DMEA Category 1A Trusted Supplier, SkyWater is a key semiconductor supplier to the U.S. government and is committed to providing the lab-to-fab capabilities needed to support the nation’s defense programs.\n\n\nThe proposed $16 million CHIPS Program award will be combined with $19 million in incentives from the State of Minnesota’s Forward Fund. The newly announced state and federal incentives will complement SkyWater’s existing and planned customer-funded CapEx co-investments totaling $320 million through 2026, bringing the expected combined outside investment levels now to over $350 million during this decade. SkyWater will also utilize the Advanced Manufacturing Investment Tax Credit which is expected to be up to 25% of qualified capital expenditures.\n\n\nThrough the proposed CHIPS funding, SkyWater expects to:\n\n\n\nIncrease its U.S.-based 200 mm semiconductor technology development and production capacity by 30%\n\n\n\nCreate approximately 70 new jobs to support the workforce in Bloomington, Minnesota\n\n\n\nModernize its facility to meet the escalating demand for domestically produced microelectronics\n\n\n\nEnsure a consistent supply of trusted silicon for critical DOD and commercial programs\n\n\n\nAccelerate technology development and time to market for customers.\n\n\n\nFrom the outset of the government plan to create a program to support the semiconductor industry, SkyWater was working to bolster the nation’s supply of chips. Today, the company is immersed in many ...