SkyWater Acquires Infineon U.S. 8-inch Wafer Fab
On February 26, 2025, SkyWater Technology, a leading U.S.-based semiconductor foundry, announced an agreement to acquire Infineon's 200mm (8-inch) wafer fabrication plant, known as "Fab 25," located in Austin, Texas. In addition to the acquisition, the two companies signed a long-term supply agreement.
SkyWater will operate Fab 25 as a foundry, enhancing U.S. semiconductor manufacturing capacity by advancing technology from 130nm to 65nm. This upgrade is crucial for numerous industries, including automotive, industrial, and defense applications. The expansion will significantly increase SkyWater's scale, introducing key capabilities such as a 65nm infrastructure, expanded copper processing capacity, and high-voltage bipolar CMOS-DMOS (BCD) technology.
The strategic partnership aims to strengthen the long-term viability and operational efficiency of Fab 25. As part of the agreement, all current employees at Fab 25 will transition to SkyWater, securing nearly 1,000 manufacturing jobs in the region. This move underscores the commitment to maintaining and expanding critical U.S. semiconductor jobs.
The deal involves an $80 million purchase price, with $55 million payable at the time of closing. Additionally, an estimated $30 million will be paid in working capital, with potential adjustments. The remaining $25 million will be settled through wafer capacity supply credits. The transaction is expected to conclude within 90 to 120 days, with completion anticipated by the end of Q3 2025, pending regulatory approval.
SkyWater, known for its trusted relationship with the U.S. Department of Defense, believes the acquisition will enable significant economies of scale and provide high-value manufacturing services to its diverse customer base. The company plans to transform Fab 25's business model from an Integrated Device Manufacturer (IDM) to a pure-play foundry, expanding its capacity to serve a broader range of customers in the future.
This partnership supports the U.S. government's strategic interest in securing the nation's semiconductor supply chain, which is critical to industries such as defense, automotive, and infrastructure. By strengthening domestic manufacturing capabilities, the agreement aims to bolster the resilience of key semiconductor technologies and secure a robust industrial foundation.
Alexander Gorski, Executive Vice President and Head of Front-End Operations at Infineon, stated, "This transaction aligns perfectly with our manufacturing strategy, creating synergies with a strategic foundry partner where in-house manufacturing cannot deliver a competitive advantage. Our collaboration with SkyWater ensures strong, scalable, and reliable manufacturing capabilities in the U.S. and provides us with a trusted partner to safeguard our long-term supply base."
Thomas Sonderman, CEO of SkyWater, added, "This milestone significantly expands our partnership with Infineon and increases our foundry capacity in the U.S. We anticipate it will strengthen the supply chain for critical semiconductor components needed in strategic applications, enhancing national and economic security. By leveraging the expertise of the talented Austin team, we are positioning this facility as a cornerstone of the U.S. semiconductor foundry network, which will support defense programs and create new commercial opportunities."
Infineon's U.S. operations are a key part of its global strategy, with approximately 4,000 employees, 15 R&D facilities, and 1,000 researchers. The company serves a wide range of U.S. customers in sectors such as automotive, industrial, infrastructure, consumer electronics, and communications. At Fab 25, Infineon produces up to one billion semiconductor chips annually for major automotive, industrial, and communication companies.
