On June 30, 2025, SkyWater Technology Inc. (NASDAQ: SKYT) completed its acquisition of Infineon Technologies AG’s Fab 25, a 200mm semiconductor fabrication facility located in Austin, Texas. This strategic move significantly enhances SkyWater’s domestic manufacturing capabilities, aligning with national efforts to bolster the U.S. semiconductor supply chain and reduce reliance on foreign production.
The acquisition, valued at approximately $110 million, comprises an $80 million purchase price and an estimated $30 million in working capital. SkyWater paid $55 million at closing, with the remaining $25 million deferred over four years through wafer credits under a long-term supply agreement with Infineon .
Fab 25 specializes in producing foundational semiconductors on process nodes ranging from 130nm to 65nm, which are critical for applications in the automotive, defense, and industrial sectors. The facility’s capabilities include advanced 65nm infrastructure, expanded copper processing, and high-voltage Bipolar-CMOS-DMOS (BCD) technology .
As part of the agreement, all approximately 1,000 existing Fab 25 employees will transition to SkyWater, ensuring job stability and continuity of operations . SkyWater plans to operate Fab 25 as a pure-play foundry, shifting from Infineon’s Integrated Device Manufacturer (IDM) model. This transition is expected to open the facility to a broader customer base, supporting dual-sourcing strategies for critical industries and enhancing the resilience of the U.S. semiconductor supply chain .
The acquisition is projected to add approximately $300 million in annual revenue for SkyWater, significantly expanding its market presence and production capacity . SkyWater’s Technology-as-a-Service model, which offers development services, high-volume production, and heterogeneous integration solutions, will be extended to Fab 25, further strengthening its position in the semiconductor industry .
SkyWater CEO Thomas Sonderman stated, “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.”
Infineon’s Executive Vice President and Head of Frontend Operations, Alexander Gorski, commented, “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.”
The completion of this acquisition marks a significant step in reinforcing the U.S. semiconductor manufacturing landscape, ensuring the availability of essential technologies for various critical sectors.
