SkyWater (SKYT) 28th Annual Needham Growth Conference Virtual summary

Business Overview and Strategy

• Operates as the largest exclusively U.S.-based pure-play semiconductor foundry, serving commercial and defense sectors, and quadrupled 200mm market share post-Fab 25 acquisition.

• Utilizes a technology as a service (TaaS) model, focusing on R&D monetization, partnerships with the U.S. government, and efficient time-to-market for differentiated solutions.

• Facilities in Minnesota (development), Florida (advanced packaging), and Texas (volume manufacturing) provide integrated capabilities.

• Recent expansion into quantum foundry and advanced packaging, with significant government-funded programs and $120M in DOD support.

• Diversification into industrial, automotive, medical, and quantum markets to reduce reliance on aerospace and defense.

Market Trends and Positioning

• Strong demand for domestic semiconductor manufacturing driven by supply chain resilience, federal policy, and a focus on critical infrastructure markets.

• Advanced packaging and quantum technologies are key differentiators and growth drivers, targeting on-shore solutions for defense, AI, and high-performance compute.

• Volume manufacturing capability in Texas enables scaling and attracts new customers.

• Partnerships with commercial and government sectors accelerate solution delivery and relevance.

• Vision includes building resilient, secure U.S. semiconductor supply chains and reviving domestic packaging and test capabilities.

Fab 25 and Operational Capabilities

• Fab 25 in Texas is the most advanced 200mm fab in the U.S., running 65nm and qualifying 45nm NOR Flash products.

• Fab 25 increases annual wafer capacity to 500,000 and adds 180 engineers, supporting ATS revenue growth.

• Current revenue from Fab 25 is about $80 million per quarter, primarily from Infineon under a take-or-pay agreement.

• Fab 25 outperformed expectations in revenue and profitability, now operating as two segments: Legacy and Texas.

• New business at Fab 25 is expected to yield higher margins as market pricing replaces initial contract terms.