SkyWater acquires Infineon’s Austin fab in strategic expansion
US-based semiconductor foundry, SkyWater Technology, has entered into an agreement to acquire Infineon Technologies’ 200mm fabrication facility in Austin, Texas (Fab 25). The transaction includes a long-term supply agreement between the two companies.
SkyWater plans to operate Fab 25 as a foundry, increasing available capacity in the US for chips on nodes ranging from 130 nanometers down to 65 nanometers. Chips that are critical for many industrial, automotive and defence applications.
The acquisition of Fab 25 is expected to bolster SkyWater’s scale and technological capacity, particularly in areas such as 65 nm infrastructure, expanded copper processing scale, and high-voltage Bipolar-CMOS-DMOS (BCD) technology.
The long-term supply agreement between the companies will allow Infineon to maintain an efficient and scalable manufacturing footprint in the US. Infineon’s Executive Vice President and Head of Frontend Operations, Alexander Gorski, stated that the agreement aligns with the company’s manufacturing strategy, emphasising synergies with strategic foundry partners.
“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 US," says Alexander Gorski in the press release.
The acquisition also ensures job stability for the nearly 1,000 employees at Fab 25, all of whom will transition to SkyWater. Infineon currently employs around 4,000 people across 15 US locations, with 1,000 employees dedicated to research and development. Fab 25 has historically produced up to one billion semiconductor chips annually for major automotive, industrial, and communications companies.
“This milestone expands our partnership with Infineon and significantly increases our US 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,” says Thomas Sonderman, SkyWater CEO.
He continues to state that the investment is an expansion that enhances the company's ability to serve both its defence and industrial customers.