SkyWater Technology (NASDAQ: SKYT) is a U.S.-based pure-play semiconductor foundry that manufactures wafers and provides technology development services at domestic fabrication facilities. It makes money through two integrated service lines: Advanced Technology Services (ATS), where customers co-fund process and technology development directly within production-oriented manufacturing environments, and Wafer Services (WS), which provides production-volume wafer manufacturing for both platform and customer-specific technologies. SkyWater operates fabs in Bloomington, Minnesota, Austin, Texas (SkyWater Texas, acquired and integrated in FY2025), and an advanced packaging facility in Kissimmee, Florida, through the Center for NeoVation. The ATS-to-WS model allows customers to transition from development to volume manufacturing without transferring processes or intellectual property to a third-party foundry, creating meaningful switching costs. End markets served include aerospace and defense, automotive, industrial, and medical devices, all of which require long-lifecycle, foundational-node semiconductor components.

Revenue model

SkyWater earns revenue through two service lines disclosed in its FY2025 10-K. ATS revenue comes from customer-funded development programs covering materials, devices, process flows, and packaging architectures. WS revenue comes from production-volume wafer manufacturing, including technologies that mature out of ATS programs. The integrated model supports continuity of supply and retains customer IP within SkyWater's facilities.

Products and services

SkyWater provides foundational-node wafer fabrication at technology nodes ranging from 130 nm to 65 nm (FY2025 10-K), advanced packaging solutions including fan-out wafer-level packaging, silicon interposers, and hybrid wafer bonding, and customer co-development programs spanning materials, devices, process flows, and packaging architectures. The Texas facility, acquired in FY2025, added 200 mm wafer manufacturing capacity.

Customers and end markets

Customers operate across aerospace and defense, automotive, industrial, and medical device end markets, which require semiconductor components with extended product life cycles and stable manufacturing platforms. The filing notes increasing customer and government emphasis on domestic sourcing and supply chain security. SkyWater signed a preliminary memorandum of terms in December 2024 for up to $16 million in CHIPS and Science Act funding combined with $19 million from Minnesota's Forward Fund.

Value-chain role

SkyWater occupies the foundry position in the semiconductor value chain, sitting between materials suppliers and fabless chip designers or systems integrators. Its differentiation is a domestic-only, secure manufacturing footprint with an integrated development-to-production model that eliminates process requalification transfers and can reduce time to market by 12 to 24 months compared to splitting development and manufacturing across separate foundries.

Geographic exposure

All manufacturing facilities are located in the United States: Bloomington, Minnesota (primary fab); Austin, Texas (SkyWater Texas, integrated in FY2025); and Kissimmee, Florida (advanced packaging, Center for NeoVation). The company operates under ISO 14001 environmental certification and is subject to U.S. federal, state, and EU RoHS-equivalent regulations.

Source: SEC 10-K, filed 2026-03-11

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