Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — B. Riley Securities 25th Annual Investor Conference 2025
50 slides from Skywater Technology's conference presentation, May 21, 2025
Slide 1: Q2 Investor Presentation
Q2 Investor Presentation B. Riley Securities 25th Annual Investor Conference May 21, 2025 Craig-Hallum 22nd Annual Institutional Investor Conference May 28, 2025 TD Cowen 53rd Annual Technology, Media & Telecom Conference May 29, 2025
Slide 2: SkyWater Technology Forward-Looking Statements
SkyWater Technology Forward-Looking Statements This presentation and the accompanying oral presentation, including answers to questions, contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on SkyWater T
Slide 3: America's Foundry at a Glance
America’s Foundry at a Glance $342M SKYT >$350M Quality Revenue Traded on NASDAQ CapEx Funding (Fiscal 2024) since 2021 Co-Investment Certified (expected for 2020-2026) • IATF16949 (Auto) • AS9100 (Aero/Aviation) Front-end Wafer • ISO 9001 Processing • ISO 4001 • ISO 13485 (Medical) ~30% IFX Fab 25
Slide 4: SkyWater Opportunity
SkyWater Opportunity Domestic semiconductor trends and next-generation technologies fuel growth HIGH OPERATING UNIQUE TECH PORTFOLIO LEVERAGE BUSINESS MARGIN EXPANSION GROWTH MODEL FOUNDRY MODEL “Tech ETF” - USG and customer Demonstrated financial High-growth In-demand technology unique exposure to
Slide 5: Chip Technologies
Chip Technologies Mixed-Signal CMOS Rad-Hard MEMS Superconducting Photonics CONNECTED DEVICES, SENSORS ADVANCED COMPUTING & SENSOR INTEGRATION & ARTIFICIAL INTELLIGENCE Flexible Solutions Leading Strategic Microfluidics Foundry service Capabilities for for Commercial Rad-Hard Solutions Microbolomete
Slide 6: 2024 Revenue Drivers
2024 Revenue Drivers SkyWater Revenue Mix SkyWater End Market Mix* ATS A&D Wafer Services Advanced Compute Tools Automotive Bio-Med Industrial Consumer & Other • Total revenue up 19% YoY • Revenue strength driven primarily by A&D • Strong 13% growth in ATS revenue • Advanced Compute now #2 end marke
Slide 7: Q1 Results Demonstrate Strong Demand for ThermaView Platform
Q1 Results Demonstrate Strong Demand for ThermaView Platform Capturing Growth in the $9B Thermal Imaging Market • Over half of Q1 Wafer Services revenue from new products, including ThermaView sales to two leading U.S. defense prime customers • First category-specific brand highlights SkyWater’s lea
Slide 8: Vision for U.S. Semiconductor Sovereignty
Vision for U.S. Semiconductor Sovereignty Increase capacity at Revive domestic Incorporate diverse Build resilient and both advanced and packaging and test manufacturing secure US-based foundational nodes capabilities for formats (200mm, semiconductor heterogeneous 300mm, panel-based) supply chains
Slide 9: Fab 25: Positioned to Address Critical Market Needs
Fab 25: Positioned to Address Critical Market Needs Technology Capabilities • This slide now needs to be swapped out with Ross' new version (Friday) Strategic Advantages Market Needs 9 9
Slide 10: Enabling the Quantum Revolution
Enabling the Quantum Revolution SkyWater’s Advanced Manufacturing D-Wave, in partnership with SkyWater, has achieved a historic milestone by demonstrating quantum supremacy in simulation, validating the power of annealing quantum computing for real- world problems. What Sets SkyWater Apart? Custom N
Slide 11: Current Business Outlook
Current Business Outlook • Our ATS business continues to face challenges from prolonged U.S. federal budget negotiations, delaying the timing of key program funding for our A&D customers into the second half of the year. • Based on today’s visibility, we remain confident that increased program fundi
Slide 12: TaaS Business Model and Market Drivers
TaaS Business Model and Market Drivers
Slide 13: We streamline the concept to production journey.
We streamline the concept to production journey. TECHNOLOGY AS A SERVICE (TaaS) ADVANCED TECHNOLOGY WAFER SERVICES SERVICES Enable co-creation of differentiated Supply customers with ICs and solutions which are the unique microdevices for commercial or expression of the combined mission ready produc
Slide 14: TaaS: Concept to Production Services
TaaS: Concept to Production Services Advanced Technology CONCEPT & FEASIBILITY Services (ATS) TECHNOLOGY DEMONSTRATION Wafer Services PROCESS DEVELOPMENT Technology DEVICE DESIGN as a Service: ✓ Efficient R&D DEVICE ✓ Accelerated QUALIFICATION Time-to-Market ✓ Volume Manufacturing VOLUME MANUFACTURI
Slide 15: Life of a SkyWater Wafer
Life of a SkyWater Wafer Cycles of learning through Advanced Technology Services (ATS) development enable customers to demonstrate and scale new ideas ATS CoL 3a Value is created through Cycles of Learning Learning and IP (CoL); end state product CoL 1 CoL 2 CoL 3b Prototype Generation, Process Wafe
Slide 16: Macro Trends Driving SkyWater's Business
Macro Trends Driving SkyWater’s Business AEROSPACE & DEFENSE MARKET COMMERCIAL MARKETS • Rising semiconductor content • More than Moore innovation • Onshore supply • Next-gen Biomed, Advanced Compute, Industrial 16
Slide 17: A&D Growth Drivers
A&D Growth Drivers Thermal Imaging High Reliability CMOS Trusted/Secure Technology CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Expanded use cases for infrared • Nuclear refresh • Assured domestic supply cameras • Commercialization of space • Technology innovation • Transition to higher reso
Slide 18: Targeting High-Potential Commercial Markets
Targeting High-Potential Commercial Markets NEXT-GENERATION MEDICAL ADVANCED COMPUTE INDUSTRIAL CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Increasing societal healthcare • Accelerating AI adoption • Sensorization of everything expenditure rates • Rise of chiplet technology • Edge computing
Slide 19: Meeting Demand for Innovation and Trusted Supply
Meeting Demand for Innovation and Trusted Supply ENABLING DEVELOPMENT OF AN CUSTOMIZING EXISTING TECHNOLOGY PROVIDING TRUSTED SUPPLY ENTIRELY CUSTOM TECHNOLOGY END MARKET: END MARKET: END MARKET: AI-enabled sensors Quantum Computing Secure A&D WHY SkyWater WINS: WHY SkyWater WINS: WHY SkyWater WINS:
Slide 20: Advanced Packaging Business to Begin Ramp in 2025
Advanced Packaging Business to Begin Ramp in 2025 • $120M in DOD program funding for 300mm wafer fan-out initiative ▪ Funding allocated to tool purchases, process development and integration ▪ Expected first ATS revenues in 2H-FY25 as tools are qualified Fan-Out Wafer- Hybrid Wafer • Support for dev
Slide 21: Benefits of Customer-Funded CapEx Model
Benefits of Customer-Funded CapEx Model 21
Slide 22: Significant Growth Opportunities
Significant Growth Opportunities Expand Capacity and Pursue M&A Opportunities Create Co-Develop Unique IP Next-Generation Expand Markets: Technologies Advanced Grow Advanced Packaging Technology & Other High Services Growth Diversify Customer Base 22
Slide 23: SkyWater Acquisition of Infineon's Austin Fab
SkyWater Acquisition of Infineon’s Austin Fab 25
Slide 24: SkyWater Acquisition of Infineon's Austin Fab 25
SkyWater Acquisition of Infineon’s Austin Fab 25 Announced February 26, 2025 • SkyWater to acquire fab for $110M Aerial view of Infineon’s Fab 25 facility in Austin,TX ▪ $80M purchase price + assumption of $30M in working capital ▪ Of the $80M purchase price, $55M is paid at closing − $25M deferred
Slide 25: A New Milestone in SkyWater's Leadership for U.S.-Based Semiconductors
A New Milestone in SkyWater’s Leadership 2025 for U.S.–Based Semiconductors Acquisition of IFX Fab 25 +$300M Revenue Addition of 65nm, 2024 Cu interconnect at $120M program scale, high-voltage process 2021 funded by DOD for 300mm fan out SKYT begins packaging line 2021 trading on Expansion with NASD
Slide 26: Positions SkyWater to Meet Long-Term Demand for U.S.-Sourced Foundational Semiconductors
Positions SkyWater to Meet Long-Term Demand for U.S.-Sourced Foundational Semiconductors TECHNOLOGY ADDITIONS APPLICATIONS MARKETS ▪ High-voltage mixed-signal ▪ High-voltage and mixed- ▪ Industrial Controls & technology signal ASICs Automation ▪ At-scale Cu Interconnect ▪ Power Management ICs ▪ Auto
Slide 27: Transaction Transforms SkyWater's Profile
Transaction Transforms SkyWater’s Profile Secure Manufacturing Center $300M+ Expands SAM High-Volume Advanced Incremental annual revenue for a new expected total of >$600M by >$3B* Manufacturing Center Packaging Center WS ATS Positions SkyWater as Leader in Balances Wafer Services +1000 U.S.–based e
Slide 28: Domestic Semiconductor Tailwinds
Domestic Semiconductor Tailwinds Industry driven demand for onshoring & supply chain diversity U.S. Government Support for Onshore Semiconductor Production Expanding Foundry Offerings for Aerospace & Defense Continuing domestic fab-lite IDM trend creating additional foundry opportunity 28
Slide 29: Transaction Expands SkyWater Share of 200mm U.S. Foundry Capacity
Transaction Expands SkyWater Share of 200mm U.S. Foundry Capacity for Foundational Nodes Foundational Nodes Capacity Pre-Transaction ≥ 65nm Other Global Capacity Post-Transaction 22% Foundries 23% Global Other Foundries TSMC 19% 20% Tower 17% Semiconductor TSMC 33% 15% Tower Semiconductor 29% SkyWat
Slide 30: Long View for 200mm Foundry Services in the U.S. is Strong
Long View for 200mm Foundry Services in the U.S. is Strong • Strong demand in industrial, We believe F25 in Austin is the most automotive, and defense capable 200mm fab in the western • Edge AI & IoT growth driving analog, hemisphere, perfectly suited to meet power, and RF needs long-term foundry de
Slide 31: Fab 25 Financial Impact
Fab 25 Financial Impact Strong Revenue, Adjusted EBITDA, FCF Contribution SkyWater SkyWater Fab 25 Expected Illustrative Combined Fiscal 2024 Actual Fiscal 2025 Prelim. Annual P&L Contribution P&L Results Results Outlook (at Midpt) Combined ATS development + $266M +5% growth ~$300M >$575M WS revenue
Slide 32: Strategic Diversification of Revenue Mix
Strategic Diversification of Revenue Mix Illustrative Combined Revenue Mix 2025E (>$600M) Illustrative Combined End Market Mix 2025E Wafer Services A&D ATS Automotive Tools Industrial Consumer & Other Advanced Compute Bio-Med Fab 25 transaction expected to close mid-2025. Analysis shown for illustra
Slide 33: Financials
FINANCIALS MAY 7, 2025 • NASDAQ: SKYT
Slide 34: Revenue Trend
Revenue Trend Wafer Services Returned to Growth in Q1 Driven by New Products; ATS Growth to Resume in 2H 2025; Tools Revenue in 2025 Expected to be 2H-Weighted in USD $ millions * Q2 2023 ATS development revenue excludes impact of modified customer contracts 34
Slide 35: Revenue Summary
Revenue Summary $'s in USD millions Q1 2025 Q4 2024 Q/Q* Q1 2024 Y/Y * ATS development revenue $52.5 $59.4 (12)% $61.2 (14)% Wafer Services revenue $7.5 $4.4 72% $10.0 (25)% Combined ATS development and Wafer Services revenue * $60.1 $63.8 (6)% $71.2 (16)% Tools revenue $1.2 $11.7 (89)% $8.5 (85)% T
Slide 36: Gross Margin Summary
Gross Margin Summary $'s in USD millions Q1 2025 Q4 2024 Q/Q * Q1 2024 Y/Y * GAAP gross profit $14.3 $19.3 (26)% $13.0 10% GAAP gross margin * 23.3% 25.6% (226) bps 16.3% 700 bps Adjustments: Equity-based compensation $(0.6) $0.6 (196)% $0.5 (225)% Management transition expense $— $— —% $— —% Busine
Slide 37: Adjusted EBITDA Summary
Adjusted EBITDA Summary $'s in USD millions Q1 2025 Q4 2024 Q/Q * Q1 2024 Y/Y * Net Income (Loss) $(7.3) $(0.7) (982)% $(5.7) (28)% Net income (loss) as a percentage of total revenue * (12.0)% (0.9)% (1,110) bps (7.2)% (480) bps Interest expense $1.8 $2.0 (8)% $2.4 (24)% Income tax (benefit) expense
Slide 38: Adjusted EBITDA and Non-GAAP Net Income (Loss)
Adjusted EBITDA and Non-GAAP Net Income (Loss) Continued Positive Adjusted EBITDA 38
Slide 39: Financial Details of Current Business Outlook
Financial Details of Current Business Outlook We continue to expect modest year-over-year growth in both our ATS and Wafer Services businesses for fiscal 2025 • We expect combined ATS and Wafer Services revenue growth of approximately 5% ( ± 2% ) • We expect tools revenue of ~$30 million dollars, mo
Slide 40: Appendix
Appendix
Slide 41: SkyWater's Role in the Quantum Computing Ecosystem
SkyWater’s Role in the Quantum Computing Ecosystem Creating a U.S. foundry model foundation for quantum innovation • Trusted Foundry for Quantum: DMEA- accredited, ensuring secure, domestic quantum chip production. • Broad Architecture Support: Technology capabilities and support for a wide range of
Slide 42: Quantum Computing Architectures & SkyWater's Role
Quantum Computing Architectures & SkyWater’s Role Quantum Architecture SkyWater’s Role Superconducting Actively Supporting Qubits (D-Wave) Actively Supporting Photonic Qubits (PsiQuantum) Trapped Ions Capability match Silicon Spin Capability match Qubits Topological Capability match Qubits 42
Slide 43: Technical Capabilities for Quantum Applications
Technical Capabilities for Quantum Applications SkyWater Capabilities Proprietary Nb film processing Superconducting Josephson-Junction fabrication Qubits Multi-layer Nb wiring Ultra low-loss dielectrics Images Courtesy of D-Wave Low-loss SiN waveguide fabrication Photonics Qubits Optical coupler fa
Slide 44: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental, non-GAAP financial information that our management regularly evaluates to provide additional insight to investors as supplemental information to our results reported using U.S. generally accepted accounting principles (GAAP). We provide non-GA
Slide 45: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 GAAP revenue $ 66,094 $ 69,811 $ 71,624 $ 79,154 $286,682 $ 79,636 $ 93,329 $ 93,817 $ 75,487 $342,269 $ 61,296 GAAP cost of revenue $ 49,626 $ 53,144 $ 57,477 $ 67,143 $227,390 $ 66,656 $ 76,215 $ 73,582 $ 56,190 $272,643 $ 47,039
Slide 46: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 GAAP selling, general, and administrative expense $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 $ 11,169 $ 12,332 $ 12,095 $ 12,430 $ 48,026 $ 15,030 Equity-based compensation expense (1,178) (1,459) (1,197) (1,008) (4,841) (1,510)
Slide 47: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Equity-based compensation expense allocation in the consolidated statements of operations: Cost of revenue $ 513 $ 291 $ 438 $ 313 $ 1,555 $ 455 $ 504 $ 565 $ 589 $ 2,113 $ 567 Research and development expense 162 217 218 (134) 464
Slide 48: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Net income (loss) to shareholders $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) $ (7,345) Interest expense 2,471 2,950 2,507 2,898 10,826 2,390 2,482 1,988 1,977 8,837 1,812 Incom
Slide 49: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 GAAP EPS Numerator: Net income (loss) attributable to SkyWater Technology, Inc. $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) $ 1,512 $ (679) $ (6,793) $ (7,345) Denominator: Weighted-average common shares
Slide 50: Slide 50
SkyWater Technology — B. Riley Securities 25th Annual Investor Conference 2025 on 6ix