Summary of SkyWater Technology Conference Call Company Overview - **SkyWater Technology** is the largest exclusively U.S.-based pure-play semiconductor foundry, serving both commercial and U.S. defense customers. The company operates facilities in Minnesota, Florida, and Texas, focusing on foundational nodes and advanced packaging to support critical infrastructure and supply chain resilience [1][9][10]. Core Business Model - SkyWater employs a **technology as a service** model, which emphasizes monetized R&D capabilities and partnerships with the U.S. government for domestic sourcing. The company has shifted focus from aerospace and defense to include quantum foundry technologies [9][10][14]. Facilities and Capabilities - **Minnesota**: Development center focusing on aerospace, defense, and quantum technologies. - **Florida**: Advanced packaging center with a $120 million program for wafer fan-out solutions, expected to produce prototypes in the second half of the year. - **Texas**: Volume manufacturing facility acquired to diversify into industrial and automotive sectors, enhancing scalability [10][12][14]. Market Trends and Positioning - There is a growing demand for U.S.-made semiconductors, driven by the need for critical infrastructure and supply chain resilience post-COVID. SkyWater aims to capture this demand by focusing on non-consumer markets [13][14]. - The company anticipates an upcycle in semiconductor demand and is positioned to benefit from emerging technologies, particularly in quantum computing and advanced packaging [13][14]. Federal Funding Environment - The federal funding landscape remains unpredictable, with potential government shutdowns impacting budgets. However, SkyWater has developed a strong A&D business and is prepared to navigate these challenges [19][20]. - Increased defense budgets are expected to positively impact SkyWater's ATS (Advanced Technology Services) business [21][22]. Fab 25 Insights - Fab 25 is the most advanced 200-millimeter fab in the U.S., currently producing 65-nanometer NOR Flash products and qualifying 45-nanometer products. The facility is expected to generate approximately **$80 million in quarterly revenue** [26][30]. - The acquisition of Fab 25 has increased SkyWater's wafer capacity from 100,000 to 500,000 wafers annually and added 180 engineers, enhancing ATS revenue potential [27][28]. Quantum Computing Business - SkyWater services various qubit modalities, including silicon, superconducting, and ion trap qubits. The company has established unique capabilities in cryo-electronics and advanced packaging, which are critical for quantum technologies [35][36]. - The quantum computing segment is projected to grow at a **30% rate**, with expectations for continued customer acquisition and product development [42][43]. Revenue Outlook - SkyWater anticipates total revenue of around **$600 million** for 2026, with significant contributions from Fab 25 and customer-funded tooling [44][46]. - The company is focused on converting ATS customers to wafer services, with timelines varying based on technology maturity [49][50]. Risks and Opportunities - Potential risks include delays in government funding and reliance on Infineon for revenue. However, there are numerous opportunities for growth, particularly if government budgets are released as expected [47][48]. - The company is exploring partnerships with Asian foundries to enhance domestic sourcing capabilities, which could provide additional revenue streams [55][56]. Strategic Goals - SkyWater's primary goals include executing A&D platforms, establishing the quantum foundry, and transitioning the Texas facility to a foundry model while backfilling it with new customers [59][60]. This summary encapsulates the key points discussed during the conference call, highlighting SkyWater Technology's strategic positioning, market trends, and future outlook.