SkyWater Technology is a U.S.-based pure-play semiconductor foundry — it manufactures chips for other companies rather than selling its own. SkyWater operates fabs in Minnesota, Texas, and Florida, and positions itself as the largest exclusively U.S.-based pure-play foundry for foundational-node (mature process, primarily 200mm wafer) semiconductors. SkyWater's customers are primarily defense contractors, government agencies, quantum computing companies, and commercial firms in automotive, industrial, and medical end markets. Revenue falls into two categories: Advanced Technology Services (ATS), where customers fund co-development of specialized semiconductor processes, and Wafer Services, where customers pay for volume wafer manufacturing. ATS is the higher-margin business and is anchored by multi-year U.S. Department of Defense contracts. A key feature of SkyWater's model is the ATS-to-Wafer Services conversion pipeline, where customers develop a process at SkyWater under ATS and then transition into production at the same fab. SkyWater's Texas fab (acquired from Infineon in 2025) roughly doubled the company's revenue scale and is currently anchored by a take-or-pay supply agreement with Infineon. SkyWater is also building out an advanced packaging facility in Florida under a DoD-funded contract. Quantum computing has become SkyWater's second-largest ATS end market. In January 2026, SkyWater announced a merger agreement with IonQ, under which SkyWater would become a wholly owned subsidiary of IonQ.