SkyWater Technology agrees to $16 million Performance Manufacturing Tool procurement with CHIPS for America program

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SkyWater Technology has signed a preliminary memorandum of terms valued at up to $16M with the CHIPS for America program, which is administered by the U.S. Department of Commerce. This funding will enhance production capabilities at SkyWater’s Minnesota facility and support customers in aerospace, defense, biomedical, industrial, thermal imaging, and quantum computing markets. The $16M award from the CHIPS Program will be combined with $19M in incentives from the State of Minnesota’s Forward Fund. This will complement SkyWater’s existing customer-funded investments, bringing the total outside investment to over $350M by 2026. The company will also utilize the Advanced Manufacturing Investment Tax Credit. Through this funding, SkyWater plans to increase its semiconductor technology development and production capacity by 30%, create 70 new jobs in Minnesota, and modernize its facility. The goal is to ensure a consistent supply of microelectronics for commercial and defense programs, as well as accelerate technology development and time to market for customers. This news was first reported on TheFly, a source for real-time financial news. This development represents a significant investment in domestic semiconductor production and is expected to have a positive impact on job creation and technological advancement. SkyWater is looking to position itself as a key player in the U.S. microelectronics market with the support of state and federal funding.

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