Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — 25th Annual Needham Growth Conference (January 2023)
38 slides from Skywater Technology's conference presentation, Jan 10, 2023
Slide 1: SkyWater Technology 25th Annual Needham Growth Conference
SkyWater Technology (Nasdaq: SKYT) 25 th Annual Needham Growth Conference Investor Presentation January 10, 2023
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation, including answers to questions by SkyWater Technology, Inc. (the “Company”) are strictly confidential and may not be reproduced or redistributed in whole or in part, nor may its contents be disclosed to any other person or entity.
Slide 3: Investment Highlights
Investment Highlights 01 High-Margin ATS Combined with Wafers Services Creates a Scalable Business Model 02 Uniquely Positioned to Serve Megatrends: Artificial Intelligence, Electrification, Medical Implants, Rapid Disease Screening, 5G/6G Communications, Commercialization of Space 03 Seasoned Manag
Slide 4: We streamline the concept to production journey
We streamline the concept to production journey. Technology as a Service Innovation as a Service Manufacturing as a Service Proprietary
Slide 5: SkyWater's Unique Model Accelerates Disruption
SkyWater’s Unique Model Accelerates Disruption WHO WE ARE Technology as a Service (TaaS) SM SM Innovation as a Service Manufacturing as a Service Advanced Technology Services (ATS) Wafer Services enable co-creation of differentiated solutions supply customers with ICs and which are the unique expres
Slide 6: SkyWater is Defining a New Category
SkyWater is Defining a New Category Ability to Transition “Frictionless Productization” to Volume Manufacturing Technology Foundry Specialty Conventional/ Advanced Technology Foundry Services Specialty Foundry Conventional + Target Foundry Moderate Wafer Services customization Minimal High cus
Slide 7: Enabling the Long Tail
Enabling the “Long Tail” Leading edge Smartphones & PCs Huge volumes, • Many “low millions” products fewer designs exist here • This is where future innovation is Production Volume expected to happen Internet of Things Edge computing Highly customized chips, lower volumes Chip designs Proprietary
Slide 8: TaaS Accelerates Concepts to Market
SM TaaS Accelerates Concepts to Market Technology as a Service Advanced Technology Services Wafer Services Scientific Research Technology Development Product Development Manufacturing Expanding boundaries of Co-dependent device and process Products designed on mature Qualified products produced curr
Slide 9: Model Enables Early Foundry Engagement
Model Enables Early Foundry Engagement Technology as a Service Advanced Technology Services (ATS) Wafer Services Concept & Technology Process Product Volume Product Design Feasibility Demonstration Development Qualification Manufacturing Mixed-Signal Custom Product Process Flows Design Kits Supercon
Slide 10: We are a leading U.S.-based pure-play foundry
We are a leading U.S.-based pure-play foundry. Extending a legacy of manufacturing excellence to meet the industry’s needs in a post-Moore’s Law reality Cypress SkyWater 2005 2008 2017 2018 2019 2020 2021 SkyWater SkyWater and $170 M rad-hard 3-year anniversary Florida $112M IPO closed 65 nm qualifi
Slide 11: Bloomington, Kissimmee, West Lafayette fabs
Fab Bloomington, MN Kissimmee, FL West Lafayette, IN OPERATION OPERATION OPERATION – Potential Location 200 mm equipment 200 mm equipment 200mm/300mm Capability 91,000 ft² Cleanroom - Class 10 + SMIF 35,400 ft2 Cleanroom (class 1,000 & class 10,000 30 ML CMOS wafers or 50,000 10,000) Embedded R&D Ca
Slide 12: CHIPS & Science Act of 2022 – How SkyWater Plans to Execute
CHIPS & Science Act of 2022 – How SkyWater Plans to Execute Minnesota Florida Indiana Legislation Criteria Department of Employment Enterprise Florida & Florida Indiana Economic and Economic Development Department of Economic Development Corporation Opportunity Workforce Development University of Mi
Slide 13: SkyWater's $1.8B Indiana Fab: Why Indiana?
SkyWater’s $1.8B Indiana Fab Why Indiana? • Indiana offers a robust business culture and manufacturing know how • Purdue is creating strong microelectronics ecosystem Semiconductor Degrees Program Birck Nanotechnology Center Thomas Sonderman offers remarks in the Neil Armstrong Hall of Engineeri
Slide 14: Partnership Pathways: Prototype to Production
Partnership Pathways: Prototype to Production Research Commercialization Advanced Wafer Technology Qualification Services Services R&d: r&D: r&d: Primary Activity Proof of Concept Maturing & Qualifying Volume Tech Demonstration Capabilities, Process Flows, and Production Process Development Products
Slide 15: MRLs and Development Phases
MRLs and Development Phases Technology Demonstration / Process Development Manufacturability & High Volume Proof of Concept & Base Process Qual Product Qual Production Scoping Project Kickoff Development MFG Integration Production Ramp Low Rate Full Rate Scoping and business Kickoff meeting to Execu
Slide 16: Diverse Vertical Markets Served by Differentiated Platforms
Diverse Vertical Markets Served by Differentiated Platforms Aerospace Industrial Bio-Health Automotive & Advanced Consumer & Defense and IoT Transportation Computing TaaSSM model supports disruptive trends across markets TaaSSM feeds recurring revenue through differentiated engagements Advanced Tech
Slide 17: Diverse Markets and Technologies Enable Rapid Growth
Diverse Markets and Technologies Enable Rapid Growth Aerospace & Advanced Automotive & Platform Bio-Health Consumer Industrial / IoT Defense Computing Transportation Mixed Signal ● ● ● ● ● Rad-Hard ● ● Discrete Power ● ● ● ● Advanced Packaging ● ● ● ● ● ● Superconducting ● ● 3DSoCs ● ● ● ● ● ● Silic
Slide 18: Technology Categories
Technology Categories Mixed-Signal Rad-Hard MEMS Power Superconducting Photonics Carbon Advanced CMOS Leading Microfluidics Discrete Foundry service Capabilities for Nanotubes Packaging & Flexible Solutions Strategic Rad- MOSFET provider for quantum passive photonic CNT enabled Interposers for Comme
Slide 19: Enabling the Next Wave…SkyWater Chips in Action
Enabling the Next Wave…SkyWater Chips in Action Technology Platform Real World Application Mixed-Signal CMOS Smart Sensors & Edge Processing Power Battery Wearables Management Management Rad-Hard Strategic Defense Commercial & Implantable Nuclear Power Systems Deep Space Medical Devices Generation M
Slide 20: Select Partners & Customers
Select Partners & Customers Strategic Technology Partners Customers Proprietary
Slide 21: Synergistic Innovation
Synergistic Innovation Open-Source Drives Exponential Growth in New Designs Proprietary 21
Slide 22: Financial Summary
Financial Summary Proprietary 22
Slide 23: Q3 2022 Financial Summary
Q3 2022 Financial Summary Revenue • Total revenue +49% YoY ◦ ATS growth of 57% reflects momentum in multiple In USD millions Q3 22 Q3 21 Y/Y programs ◦ Wafer Services growth of 36% reflects improved pricing ATS Revenue $35.2 $22.4 57% with large historical customer Wafer Services Revenue $17.2 $12.7
Slide 24: Revenues Increased in Both ATS & WS
Revenues Increased in Both ATS & WS in USD $ millions +6% (3)% * Q1 2022 wafer services amount excludes impact of new contract with significant customer Proprietary 24
Slide 25: Demonstrated ATS Growth
Demonstrated ATS Growth ATS Revenue by Customer • 43% Revenue growth in 2020 (each color band is a distinct customer) • ATS revenues grew 19% in 2021 • The number of ATS customers continues to grow • Most ATS customer programs have been multi-year development programs • ATS Program spend tends to 20
Slide 26: Recent Business Highlights
Recent Business Highlights Improved pricing and revenue recognition terms with largest historical customer are evident in both YTD revenue growth and improved GM Strategic Investments in RadHard and HI Platforms are a near-term headwind to GM and are expected to be absorbed as we transition to reven
Slide 27: Multiple Drivers of Future Revenue and Margin Growth
Multiple Drivers of Future Revenue and Margin Growth Extreme Environment Point of Care Diagnostics High Performance Power Advanced Packaging Microelectronics & Genetic Sequencing Management & IoT Execute on 90 nm FDSOI Execute existing programs; Increase penetration with TaaS Enable leading-edge pow
Slide 28: Investment Highlights
Investment Highlights 01 High-Margin ATS Combined with Wafers Services Creates a Scalable Business Model 02 Uniquely Positioned to Serve Megatrends: Artificial Intelligence, Electrification, Medical Implants, Rapid Disease Screening, 5G/6G Communications, Commercialization of Space 03 Seasoned Manag
Slide 29: SkyWater
S SKywater
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental non-GAAP financial information that our management utilizes to evaluate our ongoing financial performance and provide additional insight to investors as supplemental information to our U.S. GAAP results. We provide non-GAAP gross profit, non-GA
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (In Thousands) Revenue $140,438 $ 48,101 $ 41,189 $ 35,025 $ 38,533 $ 162,848 $ 48,121 $ 47,407 $52,326 Estimated impact of additional operating week (2,491) — — — — — — — — Tool revenue (8,428) (15,405) (2,346) (281) (1,1
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (In Thousands) GAAP net loss to shareholders $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) Inventory write-down — — — — 13,442 13,442 — — — Paycheck Protection Program loan
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (In Thousands) Net loss to shareholders $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) Interest expense 5,499 1,058 912 733 839 3,542 1,029 1,040 1,331 Income tax expense (b
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (In Thousands) GAAP EPS Net loss attributable to SkyWater Technology, Inc. $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) Undistributed preferred return to Class B preferred
Slide 35: Proprietary
z= SKY Wwoter Proprietary
Slide 36: National Semiconductor Technology Centers to Drive Synergistic Innovation
National Semiconductor Technology Centers to Drive Synergistic Innovation Incubation at university labs, national labs and private labs Coalesce best new ideas w/ predefined corridors to scale Mechanism to rapidly move innovations to defense & commercial markets Domestically available R/D centers an
Slide 37: CHIPS & Science Act of 2022 – Potential SkyWater Targets
CHIPS & Science Act of 2022 – Potential SkyWater Targets CHIPS Funding Source Amount SkyWater Target Vision Budgets are notional totals • IN: $1.8B for new 300mm frontend fab construction & tools Grant program for building and expanding • FL: Fab expansion/tools for AP (Deca, GaN, Interposer) $39B s
Slide 38: Potential Technology Evolution by Site
Potential Technology Evolution by Site SkyWater Site Technology Platforms Today Technology Platforms Future Innovation Hub 90nm, 130nm CMOS 45nm, 90nm, 130nm CMOS Minnesota MEMS, Superconducting, MEMS, Superconducting, SiPho SiPho GaN and SiC Innovation Hub Florida 200mm Hybrid Integration 300mm Hyb
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