SkyWater Technology, Inc (NASDAQ: SKYT)

SkyWater Technology, Inc., a company publicly traded under the symbol SKYT, operates in the semiconductor industry as an independent, pure-play technology foundry. Based in the United States, SkyWater offers advanced semiconductor development and manufacturing services from its facilities in Minnesota and Florida, catering to a diverse range of end markets including advanced compute, aerospace and defense (A&D), automotive, bio-health, and industrial.

SkyWater's main business activities revolve around providing Technology-as-a-Service (TaaS), leveraging its proprietary technology, engineering know-how, and microelectronics manufacturing capacity to co-develop process technology intellectual property (IP) with its customers. This approach enables disruptive concepts in diverse microelectronics and related micro- and nanotechnology applications. SkyWater's primary products and services include advanced technology services (ATS), wafer services, and advanced packaging services. The ATS offers engineering and process development support to co-create advanced technologies, while wafer services provide semiconductor manufacturing services for a wide variety of silicon-based analog and mixed-signal, MEMS, and rad-hard ICs. Advanced packaging services offer development and manufacturing of advanced packaging solutions, including 2.5D, 3D, and System-in-Package (SiP) technologies.

SkyWater's competitive advantages in the industry stem from its status as a publicly-traded, U.S.-based, U.S.-headquartered pure-play technology foundry with Defense Microelectronics Activity (DMEA) Category 1A Trusted Accreditation from the DoD. This unique IP model, combined with its accelerated time-to-market advantage and expertise in highly customized projects in a low-volume research and development environment, sets SkyWater apart from its competitors, which include other pure-play foundries, fabless semiconductor companies, and integrated device manufacturers (IDMs).

The company's customers include a diverse array of companies, from those producing near-commodity volume chips to those requiring highly specialized next-generation technology solutions. SkyWater's largest customers include Infineon, which accounted for 17% of its revenue for the fiscal year ended December 31, 2023, and three other customers, which accounted for 24%, 15%, and 10% of its revenue for the same period.

SkyWater's growth strategy includes diversifying its customer base, growing its presence in existing markets, and expanding into new end markets. The company plans to leverage its Trusted Foundry status and find USG investments to add to its capabilities and expand its markets. SkyWater also plans to expand its U.S.-based pure-play advanced packaging foundry services, expand its capabilities in the rad-hard market, co-develop next-generation technologies with its customers, and invest in design block IP development and enable third-party creation of IP.

In terms of its manufacturing process, SkyWater's Minnesota facility offers a range of process technologies, including CMOS, MEMS, and superconducting processes. The company's Florida facility provides advanced packaging services, including 2.5D, 3D, and SiP technologies. SkyWater's manufacturing process is highly customized, with a focus on low-volume, high-mix production.

SkyWater relies on a combination of copyright, trademark, and trade secret laws to protect its proprietary technology. The company also seeks to protect its intellectual property rights by requiring its employees and independent contractors involved in development of intellectual property on its behalf to enter into agreements acknowledging that all works or other intellectual property generated or conceived by them on its behalf are its property.

SkyWater has implemented a range of initiatives to reduce its environmental impact and improve its safety and quality performance. The company has achieved ISO 14001 and ISO 9001 certifications, and is committed to environmental, social, and governance best practices with a company-wide focus on sustainability.

SkyWater employs 731 individuals, all of whom reside in the United States. The company strives to attract and retain highly qualified, passionate, and agile personnel and considers its employee relations to be good, having never experienced a work stoppage.