SkyWater Technology Inc. has decided not to proceed with the construction of a $1.8 billion semiconductor production and R&D facility in Indiana, despite previously holding an option on the land. According to Tim Doty, a spokesman for Purdue University, SkyWater remains a valuable partner with ongoing research opportunities. The project was initially announced in partnership between SkyWater, the state of Indiana, and Purdue University in July 2022, with plans to seek federal CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act funding.
Representatives of SkyWater did not provide immediate comments on the decision. However, the company outlined potential risks associated with the Indiana project in its annual report filed with the Securities and Exchange Commission in March. The report highlighted potential impacts on the company’s business, financial condition, and results of operations if obligations concerning public-private partnerships were not met.
The CHIPS program aims to revitalize domestic manufacturing and supply chains by providing nearly $53 million in funding. President Joe Biden recently announced a preliminary agreement to allocate $6.6 billion to Taiwan Semiconductor Manufacturing Company (TSMC) for the construction of three factories in Arizona. SkyWater submitted a CHIPS application in the fourth quarter for enhancements at its Bloomington manufacturing facility, while Polar Semiconductor also expressed interest in investing $420 million for upgrades to its Bloomington plant.
Surya Iyer, president of Polar Semiconductor, revealed that the company is anticipating feedback from the federal government regarding its CHIPS application. SkyWater, which went public in April 2021, reported revenue of $286.7 million for 2023, marking a 34.6% increase from the previous year
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