SkyWater Technology completes acquisition of Fab 25
By adding approximately 400,000 wafer starts per year in capacity, Fab 25 brings meaningful scale to SkyWater’s exclusively US-based, pure-play foundry operation and enables SkyWater to enhance its advanced technology services (ATS) offering by incorporating the site’s current capabilities.
US-based pure-play foundry SkyWater Technology has announced that it has completed its acquisition of Fab 25, Infineon Technologies’ 200 mm semiconductor fab in Austin, Texas. Approximately 1,000 Fab 25 employees have now joined SkyWater.
SkyWater’s acquisition of Fab 25 consists of a USD 73 million payment at close plus an additional approximately USD 20 million payment at close for working capital, subject to adjustment. The transaction terms were modified from those previously announced on February 26 to increase the amount payable at close by USD 18 million and to eliminate the USD 25 million payable at the conclusion of the multi-year supply agreement, SkyWater said in a media release.
By adding approximately 400,000 wafer starts per year in capacity, Fab 25 brings meaningful scale to SkyWater’s exclusively US-based, pure-play foundry operation and enables SkyWater to enhance its advanced technology services (ATS) offering by incorporating the site’s current capabilities, the company said.
The facility will play a central role in expanding domestic manufacturing for foundational semiconductor technologies that support embedded processors/MCUs, memory, mixed signal, RF and power applications. In addition, the transaction advances the onshoring of semiconductor production by converting the fab’s capacity from serving a captive integrated device manufacturer (IDM) to operating as a pure-play, open-access semiconductor foundry.
This conversion significantly expands domestic foundry services for a broad base of SkyWater’s industrial, automotive, and defense customers. With the addition of Fab 25, SkyWater becomes the largest exclusively US-based, pure-play foundry service provider offering dual-sourced support for foundational node, 200 mm foundry capacity, the company said.
“Today’s successful completion of the Fab 25 acquisition marks a pivotal moment in our ongoing effort to strengthen the US semiconductor ecosystem,” said Thomas Sonderman, SkyWater CEO. “By transforming Fab 25 into an open-access, scalable foundry, we’re building on its impressive legacy while opening a new chapter that advances supply chain resilience, expands opportunities for our customers, and enhances US competitiveness in the technologies critical to industrial infrastructure, defense systems, and the transportation and auto industries.”
Fab 25 provides high-volume capacity and advanced capabilities that are increasingly scarce in the US, reinforcing SkyWater’s ability to support secure, scalable production at foundational nodes, the media release said.
