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SkyWater To Build Advanced $1.8B Fab

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Indiana facility will provide access to SkyWater’s development services, volume production and heterogeneous integration

SkyWater Technology has announced its plans to build a $1.8 billion US semiconductor R&D and production facility in Indiana through a public-private partnership with the State and Purdue University to pursue CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Act funding.

The Indiana facility, to be located on the Purdue campus in the Discovery Park District, will provide access to SkyWater's development services, volume production and heterogeneous integration solutions the company currently offers in its Minnesota and Florida facilities. SkyWater offers a range of technologies and integration expertise including MEMS, photonics, CMOS and PICs for monolithic or wafer-level integrations.

The ability to make this large of an investment will be the result of SkyWater, Purdue University and the State of Indiana working together to successfully obtain federal incentives in the form of grants as defined in the CHIPS Act currently making its way through Congress. Subsequently, SkyWater will continue implementing its co-investment business model through engagements with customers, suppliers and other agencies to ensure those resources are applied to advanced capabilities, new tools and scaled production.

According to US Senator Todd Young of Indiana, “For months, state leaders including Governor Holcomb, Secretary Chambers, President Daniels, and private enterprise have partnered to create a semiconductor corridor here in the Heartland. Today's announcement is a direct result of those efforts. In Washington, we are on the verge of passing a major investment in next generation technologies that is vital for the success of this and future projects, and that will ensure Indiana remains at the center of our high-tech national security economy.”

“This endeavour to bolster our chip fabrication facilities will rely on funding from the CHIPS Act. Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic reshoring of semiconductor manufacturing,” said Thomas Sonderman, SkyWater president and CEO. “Through our alliance with the Indiana Economic Development Corporation and Purdue Research Foundation, we have a unique opportunity to increase domestic production, shore up our supply chains and lay the groundwork for manufacturing technologies that will support growing demand for microelectronics.”

The aim of the new SkyWater facility is to accelerate US domestic semiconductor capabilities, ensure IP security and support a more resilient and comprehensive supply chain, providing powerful competitive advantages for its US government and commercial customers. By co-locating the fab at Purdue, SkyWater and its customers will benefit from close collaboration with the university and its pipeline of talent.

“SkyWater's investment in a new state-of-the-art semiconductor manufacturing facility at Purdue's Discovery Park District represents a major step forward and highlights the importance of public-private partnerships in fostering a robust and thriving domestic microelectronics industry,” said Dr. Devanand Shenoy, principal director of microelectronics, Office of the Under Secretary of Defense for Research and Engineering/Critical Technologies.

“Days like today prove that Indiana's investments in the economy of the future, infrastructure and talent development are cultivating an environment that enables innovators such as SkyWater to choose Indiana,” said Gov. Holcomb. “Our success and our mission to support industries of the future would not be possible without the incredible partnerships with our globally ranked universities, like Purdue University, helping us attract and retain quality, innovative talent.”

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