February 28, 2025 /SemiMedia/ — SkyWater has announced an agreement to acquire Infineon's 200mm wafer fab (Fab25) in Austin, Texas, and enter into a long-term supply agreement. SkyWater will operate the fab as a foundry, increasing U.S. semiconductor manufacturing capacity, particularly for 130nm to 65nm node chips, which are critical for industrial, automotive, and defense applications.

This acquisition will significantly expand SkyWater's foundry capacity, enhance its copper processing capabilities, and support high-voltage Bipolar-CMOS-DMOS (BCD) technologies. The long-term supply agreement will enable Infineon to maintain a strong and scalable manufacturing presence in the U.S. Both companies believe this strategic partnership will enhance the long-term viability and utilization of Fab25.

As part of the agreement, nearly 1,000 existing Fab25 employees will transition to SkyWater. SkyWater expects this deal to provide significant economies of scale, offering valuable manufacturing services to its customers and supporting dual-source strategies for critical industries.

SkyWater plans to transition Fab25 from an Integrated Device Manufacturer (IDM) model to a foundry, enabling the company to provide manufacturing capacity for a broader customer base, thereby strengthening the U.S. industrial base and domestic semiconductor supply chain. This partnership will also bolster the resilience of key foundational semiconductor technologies, particularly for defense and other critical sectors.

Alexander Gorski, Executive Vice President and Head of Front-End Operations at Infineon, stated, "This transaction aligns with Infineon’s manufacturing strategy to collaborate with strategic foundry partners when in-house manufacturing no longer provides a competitive advantage. The collaboration with SkyWater creates mutual synergies, supporting our growth and providing us with a reliable and trusted foundry partner to ensure our long-term U.S. supply base."

SkyWater CEO Thomas Sonderman added, “This milestone expands our partnership with Infineon and significantly increases our foundry capacity in the U.S., strengthening the supply chain resilience for critical chips essential to national and economic security.”

The deal is expected to close within the next few months, pending approval from U.S. regulators.