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Infineon Sells US Wafer Fab to SkyWater
February 27, 2025
SkyWater Technology, a semiconductor foundry based in Bloomington, Minnesota, has recently made a significant announcement regarding its acquisition of Infineon's 200mm wafer fab located in Austin, Texas. The deal, valued at US$110 million, marks a strategic move for SkyWater as it aims to bolster its position as a key domestic supplier of foundry services in the United States.
As part of the agreement, SkyWater will also enter into a legacy chip supply arrangement with Infineon, further solidifying the partnership between the two companies. The transaction involves a total price of US$80 million, with US$55 million to be paid upon the deal's closure, along with an additional estimated US$30 million for working capital, subject to adjustments. The remaining US$25 million will be settled through wafer credits.
Financing for the acquisition is set to be facilitated through debt, as outlined in SkyWater's 8K filing. The completion of the deal is anticipated to occur within the next 90 to 120 days, ensuring that the transition process is finalized before the conclusion of the third quarter of 2025.
The Austin-based wafer fab, known as 'Fab 25,' currently has the capacity to produce up to one billion semiconductor chips annually, catering to a range of industries including automotive, industrial, and communications sectors. Following the acquisition, all 1,000 employees at 'Fab 25' will be transferred to SkyWater, which will take over operations and utilize manufacturing process nodes ranging from 130nm down to 65nm.
Moreover, the deal will enable SkyWater to expand its copper processing capabilities and incorporate high-voltage Bipolar-CMOS-DMOS (BCD) technology into its portfolio. Thomas Sonderman, the CEO of SkyWater, expressed his enthusiasm for the acquisition, highlighting the potential benefits it brings in terms of enhancing supply chain resilience and strengthening national and economic security through the production of critical semiconductor chips for strategic applications.
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