SkyWater Unveils Plans To Build $1.8 Billion Chip Facility In Indiana

U.S. semiconductor manufacturer SkyWater Technology Inc on Wednesday announced plans to invest $1.8 billion for a chip research and production facility in Indiana, in partnership with the state and Purdue University.

The announcement comes a day after the U.S. Senate voted to move ahead with a slimmed-down version of a legislation, known as the CHIPS Act, to give billions of dollars in subsidies and tax credits for the semiconductor industry.

"This endeavor to bolster our chip fabrication facilities will rely on funding from the CHIPS Act," said Thomas Sonderman, chief executive of Bloomington, Minnesota-based SkyWater.

"Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic reshoring of semiconductor manufacturing."

SkyWater expects the ground breaking for the new facilities to happen in 2023, according to its spokesperson, but the timing would depend on whether the chip legislation is passed.

The Indiana facility will be located on the Purdue campus in West Lafayette, SkyWater said, adding that the location would help the company and its customers benefit from collaboration with the university and its pipeline of talent.

"We are on the verge of passing a major investment in next generation technologies that is vital for the success of this and future projects, and that will ensure Indiana remains at the center of our high-tech national security economy," U.S. Senator of Indiana Todd Young said in the SkyWater statement.

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