On February 26, 2025, SkyWater Technology (Nasdaq: SKYT) announced an agreement with Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) to acquire Infineon's 200mm wafer fabrication facility (“Fab 25”) in Austin, Texas. The deal, which includes a long-term supply agreement, marks a significant step in strengthening the U.S. semiconductor supply chain, particularly for foundational chips critical to industrial, automotive, and defense applications.

Under the agreement, SkyWater will operate Fab 25 as a foundry, expanding U.S. production capacity for chips on nodes ranging from 130nm to 65nm. The facility will also enhance SkyWater's capabilities with advanced 65nm infrastructure, expanded copper processing, and high-voltage Bipolar-CMOS-DMOS (BCD) technology. This acquisition will significantly scale SkyWater's foundry operations, enabling it to serve a broader customer base while supporting dual sourcing strategies for critical industries.

The transaction, valued at $80million (including $55 million at closing and $25 million in silicon wafer supply credits), is expected to close within 90 to 120 days, pending regulatory approval. As part of the deal, nearly 1,000 Fab 25 employees will transition to SkyWater, securing long-term job stability and bolstering the local economy.

Infineon will retain a strong manufacturing presence in the U.S. through the long-term supply agreement, ensuring efficient and scalable production for its automotive, industrial, and communications customers. Fab 25 currently produces up to one billion semiconductor chips annually for major global companies.

“This transaction aligns with Infineon's strategy to collaborate with trusted foundry partners when in-house manufacturing lacks competitive advantages,” said Alexander Gorski, Infineon's Executive Vice President and Head of Frontend Operations. “Our partnership with SkyWater creates mutual benefits, supports profitable growth, and safeguards our long-term U.S. supply base.”

For SkyWater, a U.S.-based semiconductor manufacturer and a trusted supplier to the Department of Defense, the acquisition represents a strategic expansion. “This milestone significantly increases our U.S. foundry capacity and enhances supply chain resilience for foundational chips critical to national and economic security,” said Thomas Sonderman, SkyWater CEO. “By leveraging the expertise of the Austin team, we aim to position Fab 25 as a cornerstone of the U.S. semiconductor foundry network, supporting both defense programs and commercial markets.”

The partnership underscores the growing importance of foundational semiconductors in strengthening the U.S. industrial base and domestic supply chain. With the transition from an Integrated Device Manufacturer (IDM) model to a foundry, SkyWater plans to bring high-value manufacturing services to new customers while addressing the increasing demand for advanced semiconductor technologies.

About Infineon

Infineon Technologies AG is a global leader in power systems and IoT, driving decarbonization and digitalization. With approximately 58,060 employees worldwide, Infineon generated revenue of about €15 billion in the 2024 fiscal year. The company is listed on the Frankfurt Stock Exchange (IFX) and the OTCQX International market (IFNNY).

About SkyWater:

SkyWater Technology (NASDAQ: SKYT) is a U.S.-based semiconductor manufacturer and a DMEA-accredited Category 1A Trusted Supplier. Its Technology as a Service model supports innovation across mixed-signal CMOS, MEMS, photonics, and advanced packaging, serving markets such as aerospace, automotive, biomedical, and quantum computing.

This strategic acquisition highlights the ongoing efforts to bolster U.S. semiconductor resilience and innovation, ensuring a robust supply chain for critical technologies.