SkyWater Explores Fanout Packaging Innovation

US specialty chip maker SkyWater Technology is ramping up its fanout packaging technology to offer a new service to its customers. In the second quarter of this year, the company experienced a significant growth in revenues, reaching a record $93.3 million, a 34% increase year-over-year. However, the gross margin saw a slight decrease to 18.3% compared to 23.9% in the same period last year, resulting in a net income of $8.1 million, down from $10.3 million, and an overall loss of $1.9 million.

One of the key drivers of this growth is the increasing demand for capacity in SkyWater's 200mm fab, especially for its 130nm process. Additionally, the company has recently acquired its first fan-out wafer-level packaging tool, which has been deployed to SkyWater Florida in preparation for the anticipated 2025 launch of an advanced packaging service. SkyWater has secured substantial funding from the US CHIPS Act to support these initiatives.

Thomas Sonderman, the CEO of SkyWater, expressed optimism about the company's performance, stating, “Continued strong results for our unique and differentiated Advanced Technology Services business, coupled with record levels of customer-funded CapEx, drove another record revenue quarter and positive non-GAAP EPS.” He emphasized the progress in efficiency gains and projected a positive trajectory towards profitability and cash flow in the coming years.

The core of SkyWater's business lies in its Advanced Technology Services (ATS) division, which achieved a new revenue milestone in Q2, generating $61.7 million from various aerospace and defense programs. The company has also established a collaboration with Quantum-Si to explore next-generation medical applications and is transitioning its baseline technology to the Wafer Services within the fab.

Furthermore, SkyWater recently integrated Multibeam’s high-productivity, direct-write e-beam patterning system into its operations, enhancing its Technology as a Service model. This advancement enables advanced lithography capabilities, spanning from early-concept prototyping to full-scale production, positioning SkyWater as a leader in cutting-edge semiconductor technologies.