Semiconductor engineering and manufacturing foundry SkyWater Technology plans to build a state-of-the-art semiconductor R&D and production facility in Tippecanoe County, Indiana. The $1.8 billion project is expected to create 750 jobs.
The new facility, built in partnership with Purdue University, will allow the company to meet growing customer demand for accelerated access to domestic development, manufacturing and advanced packaging for microelectronics, and will house next-generation manufacturing advances, according to state officials.
“This effort to strengthen our chip manufacturing facilities will depend on funding from the CHIPS Act. The federal investment will allow SkyWater to more quickly expand our efforts to address the need for strategic relocation of semiconductor manufacturing,” said Thomas Sonderman, SkyWater President and CEO. “With the support and partnership of the Indiana Economic Development Corporation, we have a unique opportunity to increase domestic production, strengthen our supply chains, and lay the foundation for manufacturing technologies that will support the growing demand for microelectronics. .”
Indiana Economic Development Corporation (IEDC) has committed to invest in SkyWater Technology up to $29 million in conditional tax credits and $1 million in training grants based on job creation plans of the company. IEDC has also committed to invest $20 million in redevelopment tax credits based on the company’s investment plans; up to $20 million in contingent structured performance payments; up to $500,000 in innovation vouchers; and $1 million in manufacturing readiness grants.
These incentives are performance-based, meaning the company is eligible to claim state benefits once it makes qualifying investments in innovation activities and employees are hired and trained. Purdue University, Greater Lafayette Commerce, City of West Lafayette, City of Lafayette, County of Tippecanoe and Duke Energy offered additional incentives.
“SkyWater’s commitment to Indiana, along with its pure foundry model, reinforces IEDC’s strategic focus on building an economy of the future and is a testament to our new AMPD task force striving to continue Indiana’s momentum in this critically important industry,” said Commerce Secretary Brad Chambers. “We are thrilled to welcome Indiana’s first semiconductor fab to Indiana’s vibrant technology and innovation ecosystem as the state leverages its long-standing expertise in of advanced manufacturing and its workforce to support the future of microelectronics.
SkyWater is the only U.S.-owned and based pure-play semiconductor foundry and is a Department of Defense Accredited Supplier specializing in custom technology development, mass manufacturing, and advanced packaging services for integrated circuits and microelectronics at its two American sites. Last year, the company announced a partnership with the Purdue Research Foundation to host an initial SkyWater team at WestGate @ Crane Technology Park in Odon, Indiana, adjacent to the Naval Surface Warfare Center, Crane Division (NSWC Crane).