SkyWater's Q2 2025: Unpacking Contradictions on Fab 25 Capacity, Revenue Impact, and Growth Strategies

Generated by AI AgentEarnings Decrypt
Monday, Aug 11, 2025 6:27 am ET1min read
Aime RobotAime Summary

- SkyWater acquired Fab 25 for $93M, securing $1B+ supply deals with Infineon and becoming the largest U.S.-based pure-play foundry with 4x capacity expansion.

- Quantum computing revenue is projected to grow over 30% in 2025, driven by strategic national security priorities and enhanced superconducting technology capabilities.

- Advanced packaging operations face delayed Florida tool revenue recognition, with Q4 2025 expected to generate at least $5M from tariff-related uncertainties.

- Wafer Services growth is fueled by ThermaView's performance, supported by customer design qualifications and strategic alignment with industrial resilience initiatives.



Fab 25 Acquisition and Strategic Impact:
-
SkyWater Technology
completed the acquisition of Fab 25, with an upfront payment of $93 million, and secured a multiyear supply agreement with Infineon projected to exceed $1 billion.
- This acquisition establishes
SkyWater
as the largest exclusively U.S.-based pure-play foundry, enhancing its capacity by 4x and expanding revenue potential by over $300 million annually.
- The integration of Fab 25 supports SkyWater's strategic focus on dual-source support for foundational node 200-millimeter foundry capacity, aligning with national security and industrial resilience initiatives.

Quantum Computing Growth:
- SkyWater is experiencing strong momentum in quantum computing applications, with expected revenue growth exceeding 30% in 2025.
- Investments in superconducting film development, interposers, and chip operation enablement have expanded SkyWater's capabilities in this domain.
- This growth is driven by the strategic importance of quantum computing to both the economy and national security, as well as new customer engagements and platform developments.

Advanced Packaging and Tool Revenue Projections:
- SkyWater anticipates Florida tools revenue to be back-loaded in 2025, with a majority recognized in Q4, supporting meaningful
ATS
revenues towards year-end.
- The expectation for Q4 includes at least $5 million of incremental revenue from Florida.
- The progress in ramping up advanced packaging operations is attributed to ongoing tariff uncertainties, although it remains on schedule.

Wafer Services Mix and Performance:
- The Wafer Services business mix has been developing favorably, with ThermaView contributing despite uneven ramp-up.
- SkyWater expects ThermaView to be the engine for continued momentum in Wafer Services through year-end and into 2026.
- The favorable mix is attributed to customers' progress in design and system-level qualifications, supporting ongoing growth momentum.

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