SkyWater Technology, Inc. (SKYT): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how the chips that power our world are made, and who's behind them? SkyWater Technology (SKYT) stands out as a U.S.-based, solely U.S.-owned, and DMEA-accredited pure-play Technology Foundry, specializing in advanced Innovation Engineering Services and volume manufacturing of differentiated integrated circuits (ICs). With a trailing 12-month revenue of $342M as of December 31, 2024, and a market cap of $325M as of April 11, 2025, SkyWater is a key player in the semiconductor industry, but how exactly does it operate and generate revenue?

Dive in to discover SkyWater's history, its unique ownership structure, and its mission to revitalize U.S. semiconductor manufacturing. Learn about its innovative Technology as a Service (TaaS) model and the diverse range of technologies it offers, from mixed-signal CMOS to superconducting ICs, and find out how SkyWater is making waves in the consumer, industrial, military & defense, and automotive sectors.

SkyWater Technology, Inc. (SKYT) History

SkyWater Technology's Founding Timeline

Year established

SkyWater Technology was established in 2008.

Original location

The company is headquartered in Bloomington, Minnesota.

Founding team members

While specific names of the original founding team members are not readily available in the search results, SkyWater emerged from the acquisition of assets from Cypress Semiconductor’s Minnesota fab.

Initial capital/funding

Details on the initial capital and funding for SkyWater Technology's formation in 2008 are not explicitly available in the provided search results.

SkyWater Technology's Evolution Milestones

SkyWater Technology's Transformative Moments

• Acquisition by Oxbow Industries: In 2017, Oxbow Industries acquired SkyWater. This acquisition was a pivotal moment, transitioning SkyWater from being part of a larger corporation to a privately-held, independent entity focused on specialized technology solutions.
• Going Public (IPO): SkyWater's IPO in 2021 was a transformative event. It provided the company with substantial capital to invest in its facilities, research and development, and strategic growth initiatives. The IPO also increased SkyWater's visibility and credibility in the market.
• CHIPS Act Funding: Receiving $35 million in direct funding under the CHIPS Act in 2024 represents a significant endorsement of SkyWater's role in strengthening the U.S. semiconductor supply chain. This funding supports expansion and technological advancement, particularly for the aerospace and defense sectors.

To gain a deeper understanding of the company's financial performance, explore: Breaking Down SkyWater Technology, Inc. (SKYT) Financial Health: Key Insights for Investors

SkyWater Technology, Inc. (SKYT) Ownership Structure

SkyWater Technology operates as a publicly traded company with a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders.

SkyWater's Current Status

SkyWater Technology is a public company, trading on the NASDAQ stock exchange under the ticker symbol SKYT. This means that a portion of the company is owned by public investors who can buy and sell shares of the company's stock on the open market.

SkyWater's Ownership Breakdown

As SkyWater Technology operates as a public company, its shares are distributed among various types of shareholders. The table below summarizes the ownership breakdown:

SkyWater's Leadership

SkyWater’s leadership team is responsible for setting the strategic direction of the company and overseeing its operations. Key members of the leadership team as of April 2025 include:

• Thomas Sonderman: President and Chief Executive Officer
• Steven Melford: Chief Financial Officer
• Ross Miller: Chief Technology Officer

For more insights into SkyWater's financial standing, explore: Breaking Down SkyWater Technology, Inc. (SKYT) Financial Health: Key Insights for Investors

SkyWater Technology, Inc. (SKYT) Mission and Values

SkyWater Technology aims to revolutionize technology by offering innovative solutions. Their core values emphasize collaboration, trust, and delivering value to their customers.

SkyWater Technology's Core Purpose

Official mission statement

SkyWater Technology's mission statement is: 'To enable innovators to create new technologies that improve the world.'

• SkyWater focuses on partnering with innovators.
• Their goal is to facilitate the development of technologies.
• The ultimate aim is to contribute positively to global advancements.

Vision statement

SkyWater Technology strives to be the trusted and strategic technology partner, providing valuable contributions to their customers. This vision reflects their commitment to building long-term relationships and offering expertise that helps clients succeed.

• SkyWater aims to be a trusted partner.
• They want to be seen as strategic in their collaborations.
• The focus is on providing valuable contributions to customer projects.

Company slogan/tagline

SkyWater Technology's tagline is 'Innovate with Purpose.' This slogan encapsulates the company's dedication to not only innovating but also ensuring that their innovations serve a meaningful and beneficial purpose.

To gain more in-depth insights into SkyWater Technology's financial performance, see Breaking Down SkyWater Technology, Inc. (SKYT) Financial Health: Key Insights for Investors.

SkyWater Technology, Inc. (SKYT) How It Works

SkyWater Technology operates as a pure-play technology foundry, specializing in the development and manufacturing of advanced semiconductor solutions. They provide custom design and manufacturing services, catering to clients who require specialized processes and technologies.

SkyWater Technology's Product/Service Portfolio

SkyWater Technology's Operational Framework

SkyWater operates a Technology Foundry model. The company focuses on:

• Custom Design and Manufacturing: SkyWater offers services encompassing the entire semiconductor manufacturing process, from initial design to final production. This includes process design, prototyping, and volume manufacturing.
• Technology Development: A significant aspect of SkyWater's operations involves developing and refining specialized semiconductor processes. They work closely with clients to create custom solutions tailored to specific application needs.
• Trusted Foundry Services: SkyWater provides trusted foundry services to the U.S. government and defense industry, ensuring secure and reliable manufacturing of critical components. In 2024, they were awarded a \$170 million contract by the Department of Defense (DOD) to enhance domestic production capabilities for radiation-hardened microelectronics.
• Open Source PDK: SkyWater supports the open-source hardware movement by providing open-source process design kits (PDKs). This allows designers and researchers to access and modify semiconductor designs, fostering innovation and collaboration.

SkyWater Technology's Strategic Advantages

SkyWater Technology distinguishes itself through several key strategic advantages:

• Specialized Technology Focus: SkyWater concentrates on niche markets and specialized technologies, allowing them to offer unique solutions that larger foundries may not prioritize.
• U.S.-Based Manufacturing: SkyWater operates a U.S.-based manufacturing facility, which is a significant advantage for clients requiring domestic production for security or supply chain reasons.
• Government Partnerships: Strong relationships with the U.S. government and defense agencies provide a stable revenue stream and opportunities for technology development.
• Open Source Initiatives: Their commitment to open-source PDKs fosters innovation and attracts a community of designers and researchers.
• Financial Performance: SkyWater reported revenue of \$73.3 million for the fourth quarter of 2024 and \$292.6 million for the full year 2024. They have seen increased revenue from both advanced packaging and development services.

More information about SkyWater Technology can be found here: Exploring SkyWater Technology, Inc. (SKYT) Investor Profile: Who’s Buying and Why?

SkyWater Technology, Inc. (SKYT) How It Makes Money

SkyWater Technology primarily generates revenue by providing semiconductor manufacturing services, specializing in the development and fabrication of integrated circuits and advanced microelectronics for a diverse range of industries.

SkyWater Technology's Revenue Breakdown

SkyWater Technology's Business Economics

SkyWater Technology operates with a business model centered on providing specialized semiconductor manufacturing services. Key aspects of their business economics include:

• Pricing Strategy: SkyWater employs a value-based pricing model, where prices are set based on the complexity and customization required for each project. This allows for higher margins on specialized solutions.
• Government Contracts: A significant portion of SkyWater's revenue is derived from government contracts, providing a stable income stream and supporting advanced technology development.
• Capacity Utilization: Efficient utilization of their manufacturing facilities is crucial. Higher utilization rates translate to better absorption of fixed costs and improved profitability.
• Strategic Partnerships: Collaborations with research institutions and other technology companies enhance their service offerings and expand their market reach.

SkyWater Technology's Financial Performance

Key highlights of SkyWater Technology's recent financial performance include:

• For the fiscal year 2024, SkyWater Technology reported revenue of $461.2 million, representing a 14.3% increase year-over-year.
• Gross profit for 2024 was $90.4 million, with a gross margin of 19.6%.
• The company's net loss for 2024 was $44.5 million, or $1.13 per share.
• SkyWater ended the year with a strong backlog of $522.1 million, providing visibility into future revenue.
• R&D Investments: SkyWater continues to invest in research and development to enhance its technological capabilities, with R&D expenses in 2024 totaling $63.9 million.

To gain more insights into SkyWater Technology, Inc. and its investors, check out: Exploring SkyWater Technology, Inc. (SKYT) Investor Profile: Who’s Buying and Why?

SkyWater Technology, Inc. (SKYT) Market Position & Future Outlook

SkyWater Technology is strategically positioned to capitalize on the growing demand for specialized semiconductor solutions, particularly in areas like strategic rad-hard electronics and complex mixed-signal technologies. The company's focus on providing custom design and manufacturing services, along with its engagement with government and commercial entities, offers a stable foundation for future growth, though it must navigate competitive pressures and technological advancements.

Competitive Landscape

Opportunities & Challenges

Industry Position

SkyWater Technology operates as a pure-play foundry, differentiating itself through its focus on specialized technologies and U.S.-based manufacturing. Key aspects of its industry position include:

• Niche Focus: SkyWater specializes in technologies like rad-hard and mixed-signal, catering to specific market segments.
• Domestic Manufacturing: Being a U.S.-based foundry provides an advantage, particularly with government and defense contracts.
• Strategic Partnerships: Collaborations with research institutions and other companies enhance its technological capabilities and market reach.

To learn more about the company's goals, see Mission Statement, Vision, & Core Values of SkyWater Technology, Inc. (SKYT).