- SkyWater Technology (SKYT, Financial) has completed the acquisition of Fab 25, a semiconductor fab in Austin, Texas, from Infineon Technologies AG (IFX).
- The $73 million transaction will expand SkyWater's U.S.-based foundry capacity and strengthen the domestic semiconductor ecosystem.
- The acquisition is supported by a $350 million senior secured revolving credit facility, enhancing SkyWater’s financial flexibility.
SkyWater Technology (SKYT), a leading U.S.-based semiconductor manufacturer, has officially acquired Infineon Technologies AG’s Fab 25 in Austin, Texas. This strategic move expands SkyWater's production capacity by approximately 400,000 wafer starts per year, reinforcing its status as the largest exclusively U.S.-based, pure-play foundry. The transformation of Fab 25 into an open-access infrastructure will enhance SkyWater’s capabilities to serve the industrial, automotive, and defense sectors with foundational semiconductor technologies.
The acquisition, valued at $73 million, includes an additional approximately $20 million payment for working capital at closing, subject to adjustments. Financing for the transaction comes from a $350 million senior secured revolving credit facility, involving lenders such as Siena Lending Group LLC, Great Rock Capital, Benefit Street Partners, and Ares Credit Group. This new facility replaces the company’s existing $130 million revolving credit setup, providing SkyWater with the capacity to fund acquisition costs, ongoing capital expenditures, and corporate needs.
CEO Thomas Sonderman expressed that this acquisition marks a pivotal moment in bolstering the U.S. semiconductor supply chain. Fab 25 will improve SkyWater’s ability to meet growing demand and national security requirements with its capabilities in copper processing, high-voltage technology, and 65 nm node infrastructure.
Under the terms of the deal, approximately 1,000 employees from Fab 25 have joined SkyWater, ensuring a continuing hub of semiconductor innovation and manufacturing excellence in Austin. The acquisition is anticipated to contribute significantly to SkyWater's revenue, adjusted EBITDA, and free cash flow generation, further promoting national onshoring and supply chain resilience.
