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Highlights

  • Acquisition includes USD 73 million closing payment and USD 20 million for working capital, debt-funded.
  • Fab 25 adds 400,000 annual wafer starts to SkyWater’s U.S.-based foundry capacity.
  • SkyWater replaces USD 130 million credit line with new USD 350 million facility to fund acquisition.

 SkyWater Technology (Nasdaq: SKYT) has completed the acquisition of Infineon Technologies AG’s 200 mm semiconductor fabrication facility in Austin, Texas, known as Fab 25, for a total upfront consideration of approximately USD 93 million. The transaction includes a USD 73 million closing payment and an estimated USD 20 million for working capital, financed through a new USD 350 million senior secured revolving credit facility provided by SkyWater’s lending partners. 

The acquisition adds roughly 400,000 wafer starts per year to SkyWater’s domestic production capacity and converts Fab 25 from a captive integrated device manufacturer (IDM) model into an open-access, pure-play foundry. The move supports the expansion of U.S.-based manufacturing for foundational semiconductor technologies across embedded processing, RF, memory, power, and mixed-signal applications, particularly in industrial, automotive, and defense sectors. 

With this transaction, SkyWater becomes the largest exclusively U.S.-based, pure-play foundry service provider offering dual-sourced support at the 200 mm node. The facility also brings over 1,000 former Infineon employees under SkyWater’s operations. 

The agreement includes a long-term supply arrangement that allows Infineon to maintain manufacturing access through the Fab 25 site. SkyWater plans to integrate the facility into its domestic foundry roadmap, which covers multiple nodes and end markets. Fab 25’s existing capabilities in high-voltage technology, copper processing, and 65 nm node infrastructure are seen as valuable additions to SkyWater’s portfolio. 

SkyWater’s revised financing arrangement replaces its previous USD 130 million revolving credit facility. As of closing, USD 137 million has been drawn from the new facility, USD 103 million to cover the acquisition and related costs, USD 26 million to settle the earlier facility, and USD 7 million added to the company’s cash balance. 

Additional details on the strategic and financial implications of the transaction are expected to be shared at SkyWater’s planned Capital Markets Day at Fab 25 in the second half of fiscal 2025.