Semiconductor engineering and fabrication 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, constructed in partnership with Purdue University, will allow the company to respond to increasing customer demand for accelerated access to domestic development, manufacturing and advanced packaging for microelectronics, and will house advanced next generation fabrication facilities, according to state officials.
“This endeavor to bolster our chip fabrication facilities will rely on funding from the CHIPS Act. Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic reshoring of semiconductor manufacturing,” said Thomas Sonderman, SkyWater president and CEO. “Through the support and partnership of the Indiana Economic Development Corporation, we have a unique opportunity to increase domestic production, shore up our supply chains and lay the groundwork for manufacturing technologies that will support growing demand for microelectronics.”
Indiana Economic Development Corporation (IEDC) committed an investment in SkyWater Technology of up to $29 million in the form of conditional tax credits and $1 million in training grants based on the company’s job creation plans. The IEDC also committed an investment of $20 million in redevelopment tax credits based on the company’s investment plans; up to $20 million in conditional 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 the company makes eligible investments in innovation activities and employees are hired and trained. Purdue University, Greater Lafayette Commerce, the city of West Lafayette, the city of Lafayette, Tippecanoe County and Duke Energy offered additional incentives.
“SkyWater’s commitment to Indiana, along with its pure-play foundry model, reinforces the IEDC’s strategic focus on building an economy of the future and is a testament to our newly launched AMPD taskforce which is working to continue Indiana’s momentum in this critically important industry,” said Secretary of Commerce Brad Chambers. “We are thrilled to welcome Indiana’s first semiconductor fabrication facility into Indiana’s vibrant technology and innovation ecosystem as the state leverages its long-standing advanced manufacturing expertise and workforce to support the future of microelectronics.”
SkyWater is the only U.S. investor-owned and based pure-play semiconductor foundry and is a Department of Defense accredited supplier, specializing in custom technology development, volume manufacturing and advanced packaging services for integrated circuits and microelectronics in its two U.S. locations. Last year, the company announced a partnership with the Purdue Research Foundation to accommodate an initial SkyWater team in the WestGate@Crane Technology Park in Odon, Indiana, adjacent to the Naval Surface Warfare Center, Crane Division (NSWC Crane).