In addition, it has also signed a corresponding long-term supply agreement.
SkyWater will operate the fab as a foundry, increasing available capacity in the US for foundational chips on nodes from 130 nm down to 65 nm that are deemed critical for a number of industries including industrial, automotive and defence applications.
Fab 25 will substantially increase SkyWater’s scale as a foundry and provide additional capabilities such as 65 nm infrastructure, expanded copper processing scale and high-voltage Bipolar-CMOS-DMOS (BCD) technology.
The long-term supply agreement will enable Infineon to maintain a strong, efficient and scalable manufacturing footprint in the United States.
Infineon and SkyWater said that this strategic partnership would enhance the long-term viability and utilisation of Fab 25 and would secure 1,000 manufacturing jobs – all current Fab 25 employees will become SkyWater employees as part of the agreement.
SkyWater is a US-based company with access to a broad customer base and is also a Trusted supplier of the US Department of Defense.
According to the company the transaction will allow it to realise significant economies of scale, bring high-value manufacturing services to SkyWater’s customers and support dual sourcing strategies for critical industries.
In addition, SkyWater said that it plans to transition the Fab 25 business model from Integrated Device Manufacturer (IDM) to foundry to bring substantial manufacturing capacity to a broad base of new customers over time.
Foundational semiconductors are of strategic importance for several US industries, including the defence sector.
The partnership will also help to strengthen the industrial base and domestic semiconductor supply chain in the US as well as the resilience for critical foundational semiconductor technology.
The closing of the transaction is subject to regulatory approval in the US and is expected in the coming months.
"The transaction fully aligns with Infineon's manufacturing strategy to create synergies with strategic foundry partners when in-house manufacturing does not offer competitive advantages,” said Alexander Gorski, Executive Vice President and Head of Frontend Operations at Infineon. “The partnership with SkyWater creates mutual benefits and synergies, supports our profitable growth and provides us with a strong and trusted foundry partner, thereby safeguarding our long-term supply base in the US."
“This agreement increases our US foundry capacity. We expect it will also enhance supply chain resilience for foundational chips that are critical to sensitive strategic applications, thereby strengthening both national and economic security,” added Thomas Sonderman, SkyWater CEO. “We are positioning this fab as a cornerstone in the US semiconductor foundry network - one that will extend our capabilities to support defence programs while also enabling new opportunities in commercial markets.”
