SkyWater (SKYT) 27th Annual ICR Conference 2025 summary

Company Overview and Differentiation

• Positioned as the only U.S.-based pure-play semiconductor foundry, leveraging a technology foundry model and monetizing R&D and high-volume manufacturing since 2017.

• Over 50 active engagements split between DOD and commercial customers, leveraging a CMOS fab down to 90 nm.

• Integrates MEMS, superconducting films, and photonics into CMOS, driving differentiation and ATS growth.

• Focus on high-growth end markets, including defense, industrial, and medical sectors, with unique technology services and advanced packaging capabilities.

• Strategic partnerships in quantum computing and AI, including collaborations with D-Wave and PsiQuantum, drive scalable innovation.

Business Model, Investment, and Financials

• Operates as CapEx light, with customers funding tool investments, reducing need for external capital and enabling high operating leverage.

• $200M in tool investment planned from 2024–2026, aiming for a 5x increase in average selling price.

• Over $350M in total investment from customer, state, and federal sources, with debt levels stable since IPO.

• Achieved record revenue in Q3 2024, with a 9th consecutive quarter of positive adjusted EBITDA.

• Revenue for the last twelve months through Q3 2024 exceeded $300M, with a 35% three-year CAGR in ATS business.

Market Trends and Strategic Direction

• Unique as a 100% U.S. investor-owned pure-play foundry, positioned to benefit from reshoring, onshoring, and "Made in America" trends.

• Advanced solutions attract customers from Asian foundries, especially with 90 nm offerings.

• Macro trends such as rising semiconductor content and demand for trusted supply underpin long-term growth.

• Anticipates increased demand due to government focus on domestic manufacturing and potential tariffs.

• Growth strategy includes diversifying the customer base, expanding ATS, co-developing next-gen technologies, and pursuing M&A opportunities.