SkyWater Technology, LLC
SkyWater Technology, Inc. is a U.S.-based independent pure-play semiconductor foundry serving customers that need specialized process development, foundational-node wafer manufacturing, and advanced packaging. Its integrated operating network spans fabrication and packaging facilities in Minnesota, Texas, and Florida, with reportable segments covering Legacy SkyWater and SkyWater Texas.
Fiscal year 2025 · change from previous year
Development 2021–2025
Business
Share of revenueCo-development, process integration, and technology realization for specialized semiconductor applications.
Production wafer manufacturing across foundational-node and specialized semiconductor processes.
Packaging and integration services for complex devices and emerging technology architectures.
Products
Reported · share of revenue- Wafer Services45.4 %
- Advanced Technology Services Time and Materials and Cost Plus Fixed Fee Contracts31.9 %
- Advanced Technology Services Fixed Price15.8 %
- Tool6.5 %
- Advanced Technology Services Other0.4 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
SkyWater serves commercial and government customers ranging from semiconductor designers producing relatively high-volume chips to organizations developing specialized next-generation devices. Aerospace and defense customers buy secure domestic manufacturing, traceability, reliability, and long product-life support, while automotive, industrial, medical, and bio-health customers require stable supply and application-specific processes. Quantum computing companies use SkyWater for process development, fabrication, and packaging across superconducting, photonic, spin-based, and other architectures.
Buy secure, traceable, reliable domestic fabrication for sensitive government and defense programs.
Use process development, wafer fabrication, and packaging for emerging quantum architectures.
Purchase reliable semiconductor production with stable supply and extended product availability.
Buy sensing, control, power-management, and other specialized semiconductor technologies.
Use specialized devices for diagnostics, imaging, and medical applications.
Strategy
SkyWater’s strategy centers on combining domestic wafer manufacturing with advanced technology development and packaging so customers can move from process design to production within one operating network. The company is expanding scale and production capability through the Texas platform while developing quantum computing, advanced packaging, defense, and other specialized markets. Maintaining trusted domestic manufacturing status is intended to differentiate SkyWater where supply security and program eligibility matter as much as device cost.
Additional high-volume capacity broadens SkyWater's production offering and domestic scale.
Quantum devices require specialized process integration that fits SkyWater's ATS model.
Moving customers from ATS into Wafer Services can deepen relationships and improve capacity utilization.
U.S. ownership and controlled facilities support sensitive defense and government supply chains.
Geography
SkyWater operates exclusively in the United States through fabrication and packaging facilities in Bloomington, Minnesota; Austin, Texas; and Kissimmee, Florida. Minnesota combines technology development and wafer manufacturing, Texas provides high-volume 200 mm production, and Florida supplies advanced packaging. The domestic footprint supports customers that prioritize secure supply chains, U.S. government eligibility, and close engineering collaboration.
Risks
SkyWater is exposed to semiconductor cyclicality, customer concentration, program-funding delays, and the substantial capital requirements of operating fabrication facilities. Its defense and trusted-foundry activities increase cybersecurity, regulatory, and information-security exposure, while disruptions at any site could affect customer programs. Acquisition integration, leverage, and the ability to convert development projects into sustained production also affect the business model’s execution risk.
- Cybersecurity and sensitive information exposureImpact: CriticalLikelihood: Medium
Trusted-foundry and defense programs make facilities, systems, trade secrets, and customer data attractive targets.
Exposure - Customer concentrationImpact: HighLikelihood: Medium
A small number of customers represent a large share of revenue, increasing the impact of lost or delayed programs.
Exposure: Infineon represented 43% of fiscal 2025 revenue; two other customers represented 21% in aggregate.
- Government program funding delaysImpact: HighLikelihood: Medium
Defense-related ATS engagements depend partly on federal budgets and program approvals.
Exposure: Continuing resolutions and delayed Department of Defense funding can defer customer activity.
- Semiconductor cyclicality and competitionImpact: HighLikelihood: Medium
Demand, pricing, utilization, and customer inventories fluctuate across semiconductor markets.
Exposure: Foundational-node manufacturing competes for programs that may be consolidated or reprioritized.
- Fab and acquisition executionImpact: HighLikelihood: Medium
New capacity and acquired operations require integration, qualification, staffing, and sustained utilization.
Exposure: Failure to achieve expected production or customer ramp could increase fixed-cost pressure.
Accounting
Judgemental itemsDevelopment milestones, qualification activities, wafer production, and packaging may have different recognition triggers.
Impact: Timing can shift revenue and margins between quarters.
The acquired facility requires valuation of tangible assets, identifiable intangibles, goodwill, and assumed liabilities.
Impact: Future depreciation, amortization, impairment, and reported earnings are affected.
Semiconductor fabs contain specialized equipment with significant useful-life and residual-value judgments.
Impact: Changes in utilization or estimated lives affect depreciation and asset carrying values.
Specialized wafers and materials may be difficult to redeploy if customer programs or processes change.
Impact: Demand changes can produce inventory write-downs and gross-margin volatility.
Fiscal years end on the Sunday closest to the end of December and may contain different operating-week patterns.
Impact: Weekly production and shipment timing can affect period-to-period comparisons.
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Last updated: 24/09/2026