• Tue. May 21st, 2024

SkyWater Technology cancels $1.8B option on Indiana semiconductor plant land

BySamantha Johnson

Apr 8, 2024
SkyWater Technology cancels $1.8B option on Indiana semiconductor plant land

SkyWater Technology Inc. has decided to step back from its original plans to construct a $1.8 billion semiconductor production and R&D facility in Indiana. Despite releasing its option on the land, SkyWater remains a valuable partner with ongoing research opportunities, as stated by Tim Doty, a spokesperson for Purdue University where the project was intended to be located. The project was announced in July 2022 by Bloomington, Minn.-based SkyWater in collaboration with the state of Indiana and Purdue University. The plan involved seeking funding from the federal CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act.

Although SkyWater representatives did not provide an immediate response for comment, the company had previously identified potential risks associated with the Indiana project in its annual report to the Securities and Exchange Commission in March. The report indicated concerns about meeting obligations or realizing expected benefits from public-private partnerships, which could have a significant adverse impact on the business, financial condition, and results of operations. The CHIPS program aims to allocate nearly $53 million to enhance domestic manufacturing and supply chains, attracting attention when President Joe Biden recently announced a provisional agreement to provide $6.6 billion to Taiwan Semiconductor Manufacturing Company (TSMC) for the construction of three factories in Arizona.

In discussions related to the CHIPS program, SkyWater had submitted an application for modernization and upgrades at its existing manufacturing facility in Bloomington, as reported in its February earnings report. Polar Semiconductor, another company planning investments in upgrades for its Bloomington facility, is also waiting for news about its application for funding through the federal government. SkyWater, which became publicly traded in April 2021, experienced growth with reported revenue of $286.7 million for 2023, marking an increase of 34.6% from the previous year. Despite this growth, the company recorded a $25.1 million net loss for the year.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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