MicroVision MOVIA lidar gains support on NVIDIA DRIVE AGX platform
BLOOMINGTON, Minn. & MUNICH, Germany - In a move to bolster U.S. semiconductor manufacturing, SkyWater Technology (NASDAQ: SKYT) has agreed to acquire Infineon Technologies AG (OTC:IFNNY)’s (FSE: IFX / OTCQX: IFNNY) 200 mm fabrication facility in Austin, Texas. The agreement includes a long-term supply deal, ensuring Infineon a continued manufacturing presence in the U.S.
This strategic partnership aims to enhance the facility’s long-term viability and boost its utilization. The deal will preserve nearly 1,000 jobs, with all current employees at the Austin fab set to join SkyWater following the transaction’s closure, which is pending regulatory approval in the U.S. and expected in the coming months. The transaction comes as Infineon, which generated revenues of $15.2 billion in the last twelve months, continues to optimize its manufacturing footprint while maintaining its strong market position.
SkyWater, a trusted supplier of the U.S. Department of Defense, anticipates that the acquisition will enable significant economies of scale, extend high-value manufacturing services to its customers, and support dual sourcing strategies for essential industries. The Austin facility, also known as Fab 25, will increase SkyWater’s foundry scale and add capabilities including 65 nm infrastructure and high-voltage Bipolar-CMOS-DMOS (BCD) technology.
Infineon’s Executive Vice President Alexander Gorski highlighted the mutual benefits and synergies of the partnership, noting the alignment with Infineon’s manufacturing strategy. The agreement will secure Infineon’s supply base in the U.S. and reflects the company’s commitment to strategic foundry collaborations.
SkyWater CEO Thomas Sonderman expressed that the acquisition will enhance supply chain resilience for chips critical to strategic applications, thereby strengthening national and economic security. The expanded U.S. foundry capacity is expected to serve both defense and industrial customers more effectively.
Infineon, a leader in power systems and IoT, employs approximately 4,000 individuals in the U.S., with 15 R&D locations and 1,000 R&D staff members. The Austin fab currently produces up to one billion semiconductor chips annually for major automotive, industrial, and communications companies.
SkyWater will host a conference call today to discuss its fourth quarter and fiscal year 2024 financial results and provide further details on the Fab 25 transaction. Additional information regarding the transaction can be found in SkyWater’s Form 8-K filing with the U.S. Securities and Exchange Commission. For investors seeking deeper insights into Infineon’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available among 1,400+ top stocks, along with 12 additional ProTips and extensive financial metrics.
This article is based on a press release statement.
In other recent news, Infineon Technologies AG reported its first-quarter fiscal year 2025 revenue at EUR 3.42 billion, an 8% decrease from the previous year, primarily due to reduced demand across most segments. Despite this decline, the company has upgraded its fiscal year 2025 outlook, expecting flat or slightly increased revenue, driven by a surge in demand for AI-related products. CFRA, Citi, BofA Securities, and Susquehanna have all raised their price targets for Infineon, with CFRA setting it at EUR 41, Citi at EUR 43, BofA Securities at EUR 44, and Susquehanna at EUR 45, each maintaining a Buy rating. These adjustments reflect the analysts’ confidence in Infineon’s strategic positioning and growth prospects, particularly in the AI and semiconductor sectors.
Citi analysts highlighted Infineon’s potential to outperform peers due to its exposure to AI and the Chinese electric vehicle market. BofA Securities increased its revenue and EBITDA estimates for Infineon, noting expected growth in AI servers and microcontroller units. Susquehanna upgraded Infineon’s stock rating from Neutral to Positive, emphasizing the company’s opportunities in AI power solutions and its strong position in wide-bandgap semiconductors. TD Cowen reiterated a Buy rating, citing Infineon’s role in secular growth areas such as electric vehicles, advanced driver-assistance systems, and AI power management as key drivers for long-term growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.