SkyWater to Acquire Infineon’s 8-Inch Austin Fab to Expand U.S. Semiconductor Production

February 26, 2025 – SkyWater Technology has announced a strategic agreement to acquire Infineon's 200mm (8-inch) Fab 25 in Austin, Texas. This acquisition will significantly boost U.S. semiconductor manufacturing capacity, particularly in 130nm to 65nm process nodes, strengthening SkyWater’s role as a key domestic foundry.

SkyWater’s Expansion Strategy – Key Highlights

Acquisition Overview:
Fab 25 Transformation – The facility will be converted into a SkyWater foundry, expanding its production capabilities
Process Nodes – Focused on 130nm to 65nm technology for foundational semiconductors
Workforce Retention – Nearly 1,000 current Infineon employees will transition to SkyWater
Strategic Partnership – SkyWater & Infineon sign long-term supply agreement to maintain fab utilization

Why It Matters:

Boosts U.S. semiconductor independence amid increasing demand for domestic chip manufacturing

Expands SkyWater’s foundry business, reinforcing its presence in the U.S. CHIPS Act-backed ecosystem

Ensures Infineon maintains supply stability while optimizing its manufacturing footprint

Infineon’s Manufacturing Strategy – Aligning with Market Trends

Infineon is strategically shifting its production focus, prioritizing external foundry collaborations for nodes where in-house manufacturing no longer offers a competitive edge.

Alexander Gorski, Infineon’s EVP of Front-End Operations:
“This transaction aligns with our strategy of leveraging foundry partners where internal production is not advantageous. SkyWater is an ideal partner to ensure long-term supply stability and operational efficiency in the U.S.”

Strengthening the U.S. Semiconductor Supply Chain

SkyWater’s acquisition of Fab 25 supports U.S. initiatives to enhance chip manufacturing resilience. By increasing domestic foundry capacity, SkyWater strengthens its ability to support sectors such as automotive, industrial, and IoT semiconductor markets.

Thomas Sonderman, CEO of SkyWater:
“This is a milestone acquisition that deepens our partnership with Infineon and significantly enhances our domestic foundry capabilities. This move reinforces the U.S. semiconductor supply chain and strengthens our ability to serve critical industries.”

What’s Next?

Regulatory Approval: The transaction is subject to U.S. regulatory approval, expected to be completed in the coming months.
Fab Integration: Once finalized, SkyWater will take full operational control, ensuring seamless production continuity.

With this move, SkyWater is positioning itself as a key player in the U.S. semiconductor manufacturing resurgence, supporting the country’s goal of reducing reliance on overseas fabs while maintaining a secure chip supply.