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

Business Overview and Strategic Positioning

• 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 model, focusing on monetized R&D, 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.

• Advanced packaging and quantum foundry capabilities are key differentiators, supporting critical infrastructure, supply chain resilience, and on-shore solutions for defense, AI, and high-performance compute.

• Positioned to benefit from increased domestic manufacturing demand, federal investment, and DOD funding in semiconductors.

Market Trends and Customer Demand

• Growing demand for domestic semiconductor manufacturing, especially for critical infrastructure, is driving business opportunities.

• Volume manufacturing capability in Texas (Fab 25) has enabled engagement with larger customers and diversified end markets.

• Advanced packaging is increasingly prioritized by customers, with significant investment and customer interest in U.S.-based solutions.

• End markets include automotive, industrial, medical devices, aerospace, defense, and quantum computing, often with federal funding.

• Strong momentum in defense, medical, and industrial markets, with the ThermaView thermal imaging platform gaining traction.

Financial Performance, Outlook, and Growth Drivers

• Q3 2025 revenue reached $150.7M, exceeding guidance by ~$15M, driven by ATS pull-in and strong Texas wafer services.

• Non-GAAP gross margin for Q3 2025 was 24.6%, with most revenue upside flowing to gross profit and ~$5M in non-recurring cost savings.

• Fab 25 is expected to generate around $80 million in quarterly revenue through 2026, primarily from Infineon under a take-or-pay agreement.

• Overall revenue is projected to reach over $600 million in 2026, including customer-funded tooling, with $60M+ Adjusted EBITDA.

• Upside drivers include increased government funding, new customer ramps, and successful technology qualifications, while delays in federal budgets remain a risk.