SkyWater to build $1.8bn chip facility in Indiana

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SkyWater Technology, the US semiconductor manufacturer, has announced that it is to invest $1.8bn in a chip research and production facility in Indiana, in partnership with the state and Purdue University.

The announcement follows the news that the US Senate voted to move ahead with the CHIPS Act to provide the semiconductor industry with subsidies and tax credits worth billions of dollars.

Commenting Thomas Sonderman, chief executive of SkyWater, said, “This endeavour to bolster our chip fabrication facilities will rely on funding from the CHIPS Act. Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic reshoring of semiconductor manufacturing."

SkyWater said that work on the new facilities would begin next year, but that the timing would depend on whether the chip legislation is passed.

The Indiana facility will be located on the Purdue University campus in West Lafayette. The location is seen by the company as a benefit to both itself and its customers because of collaboration with the university and its pipeline of talent.

SkyWater produces semiconductors at its Minnesota factory for automotive, aerospace, biomedical, cloud and computing firms and the US government. It also has an advanced packaging facility for chips in Kissimmee, Florida which is ramping up production.