SkyWater Technology (SKY) announced that it has signed a preliminary memorandum of understanding, or PMT, worth up to $16 million with the CHIPS for America program, administered by the U.S. Department of Commerce. This proposed funding would provide federal incentives to improve the production capabilities of SkyWater’s facilities in Minnesota. This funding through the CHIPS Act will accelerate the modernization and upgrade of equipment to improve production for customers in the aerospace and defense markets as well as the biomedical, industrial, imaging markets thermal and quantum computing. The proposed CHIPS program price of $16 million will be combined with $19 million in incentives from the State of Minnesota’s Forward Fund. The newly announced state and federal incentives will complement SkyWater’s existing and planned customer-funded CapEx co-investments totaling $320 million through 2026, bringing the combined outside investment levels now expected to more than $350 million. dollars during this decade. SkyWater will also utilize the Advanced Manufacturing Investment Tax Credit, which is expected to represent up to 25% of eligible capital expenditures. With the proposed CHIPS funding, SkyWater plans to: Increase its US-based 200mm production capacity. semiconductor technological development and production capacity of 30%; create approximately 70 new jobs to support the Bloomington, Minnesota workforce; modernize its facilities to meet the growing demand for domestically produced microelectronic products; ensure a consistent supply of silicon for DOD and commercial programs, and accelerate technology development and time-to-market for customers.
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