SkyWater will acquire Infineon's Austin Fab and form a strategic partnership

     SkyWater Technology has signed an agreement with Infineon Technologies AG to acquire Infineon's 200 mm manufacturing plant in Austin, Texas (Fab 25), along with a corresponding long-term supply agreement. Under the agreement, SkyWater will manage and operate Fab 25 as a foundry, expanding domestic semiconductor production capacity to produce critical chips from 130 nm to 65 nm that are critical for industrial, automotive and defense applications.

     The acquisition of Fab 25 will significantly increase SkyWater's scale as a foundry, while introducing advanced capabilities including 65nm infrastructure, expanded copper processing capabilities, and high-voltage bipolar cmos-dmos (BCD) technology. At the same time, long-term supply agreements ensure that Infineon can maintain an efficient and scalable production base in the United States.

     Both Infineon and SkyWater see this strategic partnership as a key step in strengthening Fab 25's long-term viability and optimizing utilization. In addition, the agreement secures the long-term future of nearly 1,000 manufacturing jobs at the facility as all existing Fab 25 employees transition to SkyWater.

     SkyWater, a U.S.-based semiconductor manufacturer and trusted supplier to the U.S. Department of Defense, expects the acquisition to deliver significant economies of scale, enhance high-value manufacturing services for its customers and support a dual-source strategy in key industries. SkyWater also plans to shift Fab 25's business model from integrated device manufacturer (IDM) to contract manufacturing, opening up a significant amount of manufacturing capacity to a wider range of new customers over time.

     Basic semiconductors play a strategic role in several U.S. industries, especially defense. The collaboration aims to strengthen the U.S. semiconductor supply chain, support the nation's industrial base, and improve the resilience of critical foundational chip technologies. The deal is subject to US regulatory approval and is expected to be finalised in the coming months.

     The United States remains Infineon's main market, with around 4,000 employees in 15 research and development centers and around 1,000 professionals dedicated to research and development. Infineon serves a wide variety of U.S. customers in its core market segments, including automotive, industrial and infrastructure, as well as consumer, computing and communications. Fab 25 currently produces up to 1 billion semiconductor chips per year for leading automotive, industrial and communications companies.