SkyWater Submits Application for U.S. CHIPS and Science Act Funding to Modernize Equipment and Enhance Production at its Minnesota Facility

Rhea-AI Summary

SkyWater Technology (SKYT) Submits Full Application for CHIPS Funding, Aims to Modernize Semiconductor Manufacturing Facility

Market Research Analyst

The submission of SkyWater Technology's application for funding through the CHIPS and Science Act is a strategic move that may significantly influence the company's operational capabilities and market positioning. The emphasis on modernization and equipment upgrades at their Minnesota DOD Trusted semiconductor manufacturing facility is poised to address the acute need for strengthening domestic semiconductor production, a sector that has faced global supply chain disruptions.

From a market perspective, this initiative could enhance SkyWater's competitive edge, particularly in the aerospace, defense, automotive, biomedical and IOT sectors, where the demand for trusted and secure microelectronics is high. The potential infusion of federal funds would likely expedite technology development and reduce time to market for SkyWater's customers, which could, in turn, translate into increased revenue streams and a more robust market share for the company.

Investors and stakeholders should monitor the company's progress in securing the funding, as the outcome will have material implications for SkyWater's financial health and growth trajectory. A successful funding bid could also have a ripple effect, potentially benefiting the broader semiconductor industry by contributing to a more resilient supply chain.

Financial Analyst

The financial implications of SkyWater Technology's application for CHIPS and Science Act funding are multifaceted. If granted, the capital would alleviate the financial burden associated with modernizing their production facilities, which could improve the company's balance sheet by reducing capital expenditures and enhancing profitability through operational efficiencies.

Furthermore, as a supplier to the U.S. government, SkyWater's position may be seen as more secure, potentially attracting investor interest due to the perceived stability and strategic importance of their operations. The assurance of a consistent supply of silicon for critical DoD and commercial programs could result in long-term contracts, providing predictable revenue streams.

However, it's crucial to consider the execution risk associated with such expansions and upgrades. Delays or cost overruns could negatively impact financial projections. Stakeholders should weigh these risks against the potential benefits of increased capacity and technological advancements that could drive future growth.

Defense Industry Analyst

SkyWater's initiative to secure funding for upgrading its semiconductor manufacturing capabilities is a critical development within the defense sector. The enhancement of lab-to-fab capabilities is essential for maintaining the technological superiority of the U.S. defense programs. The move aligns with the broader government objective of securing the semiconductor supply chain, which is vital for national security.

The potential impact on the defense industry extends beyond SkyWater, as it could set a precedent for similar investments across the sector. A strengthened domestic microelectronics infrastructure would likely reduce dependence on foreign entities and mitigate risks associated with geopolitical tensions and trade disputes.

Moreover, the initiative could foster innovation by providing the necessary infrastructure for the development of next-generation microelectronics. This could lead to advancements in defense systems and capabilities, giving the U.S. a strategic advantage in an increasingly technology-driven global defense landscape.

BLOOMINGTON, Minn.--(BUSINESS WIRE)-- SkyWater Technology (NASDAQ: SKYT), the trusted technology realization partner, today announced it has submitted a full application to the CHIPS Program Office of the U.S. Department of Commerce for funding through the CHIPS and Science Act. The application is for modernization and equipment upgrades to enhance production at the company’s Minnesota DOD Trusted semiconductor manufacturing facility. SkyWater is now planning for the next phases of due diligence with federal and state partners’ program offices.

Given that semiconductor supply chain issues have implications for national security, SkyWater, a key supplier to the U.S. government, is committed to providing the lab-to-fab capabilities needed to support U.S. defense programs. Expanding the nation's domestic microelectronics infrastructure empowers commercial leaders like SkyWater to play a pivotal role in guiding the DOD’s efforts in microelectronics development, ensuring that cutting-edge technologies reach their full potential. SkyWater serves customers in aerospace and defense, along with growing commercial markets, including automotive, biomedical and IOT, among others.

"Our CHIPS submission represents a key stepping stone for SkyWater in modernizing and bolstering our production services, thereby ensuring a consistent supply of trusted silicon for critical DoD and commercial programs. This historic funding will accelerate technology development and time to market for our customers, meeting the escalating demand for domestically produced microelectronics," stated SkyWater President and COO, John Sakamoto. "SkyWater is committed to working hand-in-hand with DoD stakeholders, policymakers, and industry leaders to enhance national and economic security, fortify supply chain resilience and cultivate innovation."

For more information on the CHIPS Notice Of Funding Opportunity (NOFO), please click here.

About SkyWater Technology

SkyWater (NASDAQ: SKYT) is a U.S.-based semiconductor manufacturer and a DMEA-accredited Category 1A Trusted Foundry. SkyWater’s Technology as a Service model streamlines the path to production for customers with development services, volume production and heterogeneous integration solutions in its world-class U.S. facilities. This pioneering model enables innovators to co-create the next wave of technology with diverse categories including mixed-signal CMOS, read-out ICs, rad-hard ICs, power management, MEMS, superconducting ICs, photonics, carbon nanotubes and interposers. SkyWater serves growing markets including aerospace & defense, automotive, biomedical, cloud & computing, consumer, industrial and IoT. For more information, visit: www.skywatertechnology.com.

SkyWater Technology Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on the Company’s current expectations or forecasts of future events, rather than past events and outcomes, and such statements are not guarantees of future performance. Forward-looking statements are subject to risks, uncertainties and assumptions, which may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Key factors that could cause the Company’s actual results to be different than expected or anticipated include, but are not limited to, factors discussed in the “Risk Factors” section of its annual report on Form 10-K and quarterly reports on Form 10-Q, and in other documents that the Company files with the SEC, which are available at http://www.sec.gov. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

SKYT-CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20240102183579/en/

SkyWater Company Contact:

Tara Luther | +1 952-851-5023 | tara.luther@skywatertechnology.com

SkyWater Media Contact:

Lauri Julian | +1 949-280-5602 | lauri.julian@skywatertechnology.com

Source: SkyWater Technology

FAQ

What did SkyWater Technology (SKYT) announce?

SkyWater Technology (SKYT) announced that it has submitted a full application to the CHIPS Program Office of the U.S. Department of Commerce for funding through the CHIPS and Science Act.

What is the purpose of the application submitted by SkyWater Technology (SKYT)?

The application is for modernization and equipment upgrades to enhance production at the company’s Minnesota DOD Trusted semiconductor manufacturing facility.

Who is SkyWater Technology (SKYT) committed to providing lab-to-fab capabilities for?

SkyWater Technology (SKYT) is committed to providing the lab-to-fab capabilities needed to support U.S. defense programs.

What markets does SkyWater Technology (SKYT) serve?

SkyWater Technology (SKYT) serves customers in aerospace and defense, along with growing commercial markets, including automotive, biomedical, and IOT, among others.

What did SkyWater Technology (SKYT) President and COO, John Sakamoto, state about the CHIPS submission?

John Sakamoto stated that the CHIPS submission represents a key stepping stone for SkyWater in modernizing and bolstering production services, ensuring a consistent supply of trusted silicon for critical DoD and commercial programs.

What is SkyWater Technology (SKYT) committed to working hand-in-hand with?

SkyWater Technology (SKYT) is committed to working hand-in-hand with DoD stakeholders, policymakers, and industry leaders to enhance national and economic security, fortify supply chain resilience, and cultivate innovation.