SkyWater Technology has agreed with Infineon Technologies for SkyWater to purchase Infineon’s 200 mm fab in Austin, Texas (Fab 25) and a corresponding long-term supply agreement. And SkyWater will operate the fab as a foundry, increasing available capacity in the U.S. for foundational chips on nodes from 130 to 65 nanometers, which is critical for many industrial, automotive, and defense applications.
Fab 25 will also substantially increase SkyWater’s scale as a foundry and offer additional capabilities like 65 nm infrastructure, expanded copper processing scale, and high-voltage Bipolar-CMOS-DMOS (BCD) technology. This long-term supply agreement will enable Infineon to maintain a strong, efficient and scalable manufacturing footprint in the US.
Infineon and SkyWater believe this strategic partnership will enhance the long-term viability and utilization of Fab 25. The deal 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.
SkyWater has access to a broad customer base and a Trusted supplier of the U.S. Department of Defense. And SkyWater believes the deal 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. Plus, 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.
The partnership will strengthen the industrial base and domestic semiconductor supply chain in the U.S. and the resilience for critical foundational semiconductor technology. The closing of the transaction is subject to regulatory approval in the U.S. and is expected in the coming months.
The U.S. is a major business region for Infineon with around 4,000 employees, 15 locations dedicated to research and development activities and 1,000 employees in R&D roles. And Infineon serves a multitude of American customers across all its market segments in automotive, industrial & infrastructure, and consumer, computing & communications. Currently, up to one billion semiconductor chips per year for major automotive, industrial and communications companies are manufactured in Fab 25.
KEY QUOTES:
“The transaction fully aligns with Infineon’s manufacturing strategy to create synergies with strategic foundry partners when in-house manufacturing does not offer competitive advantages. The partnership with SkyWater creates mutual benefits and synergies, supports our profitable growth and provides us with a strong and trusted foundry partner, thereby safeguarding our long-term supply base in the U.S. We commend the contributions the Fab 25 team has made to our operations and thank the Austin community and our local and federal partners for their support and collaboration.”
– Alexander Gorski, Executive Vice President and Head of Frontend Operations at Infineon
“This milestone expands our partnership with Infineon and significantly increases our U.S. foundry capacity. We expect it will also enhance supply chain resilience for foundational chips that are critical to sensitive strategic applications, thereby strengthening both national and economic security. This investment is an expansion that enhances our ability to serve both our defense and industrial customers. By leveraging the proven expertise of the talented team in Austin, we are positioning this fab as a cornerstone in the U.S. semiconductor foundry network—one that will extend our capabilities to support defense programs while also enabling new opportunities in commercial markets.”
– Thomas Sonderman, SkyWater CEO
