SkyWater Technology (Nasdaq: SKYT) announced the successful completion of its acquisition of Infineon Technologies AG’s 200 mm semiconductor fabrication plant, known as Fab 25, located in Austin, Texas. The deal marks a significant expansion of SkyWater’s domestic foundry capacity and underscores its strategic push to support U.S. semiconductor self-reliance.
The newly acquired facility adds approximately 400,000 wafer starts per year to SkyWater’s capacity, reinforcing the company’s position as the largest exclusively U.S.-based, pure-play semiconductor foundry service provider. The site is expected to enhance SkyWater’s advanced technology services by contributing capabilities in copper processing, high-voltage technologies, and infrastructure at the 65 nm node—technologies that are increasingly rare in the U.S.
“Today’s successful completion of the Fab 25 acquisition marks a pivotal moment in our ongoing effort to strengthen the U.S. semiconductor ecosystem,” said SkyWater CEO Thomas Sonderman. “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 U.S. competitiveness.”
The Austin-based site, previously operated by Infineon as a captive integrated device manufacturer (IDM) facility, will now function as an open-access foundry—broadening its utility to a wider range of SkyWater’s customers in industrial, automotive, and defense sectors. The move aligns with national onshoring and reindustrialization efforts, including U.S. Department of Defense mandates to secure critical technology supply chains.
Approximately 1,000 Fab 25 employees have joined SkyWater as part of the transition. The company has committed to investing in the site’s long-term growth and local economic development.
A long-term supply agreement between SkyWater and Infineon accompanies the transaction, ensuring Infineon maintains an efficient manufacturing presence in the U.S. while enabling SkyWater to deliver scalable services to new and existing customers.
The total consideration includes a $73 million payment at closing, plus approximately $20 million for working capital. The final terms, revised from those initially disclosed in February 2025, eliminate a previously planned $25 million payment at the end of the supply agreement and increase the upfront payment by $18 million.
Debt financing for the transaction was secured through a new five-year, senior secured revolving credit facility of up to $350 million, provided by lending partners Siena Lending Group LLC, Great Rock Capital, Benefit Street Partners, and Ares Credit Group. This replaces SkyWater’s previous $130 million credit facility and provides added financial flexibility. As of the transaction’s close, SkyWater has drawn $137 million under the new facility to cover the acquisition, retire previous credit obligations, and bolster its cash reserves.
The acquisition is expected to drive significant revenue growth, strengthen adjusted EBITDA, and generate positive free cash flow. SkyWater plans to share further financial and strategic details at an anticipated Capital Markets Day to be held at Fab 25 in the second half of fiscal 2025.
