Indiana’s Economic Development Momentum Continues with State’s First Microelectronics Factory, Planned $1.8 Billion Investment from SkyWater Technology

The chip production facility is expected to create 750 well-paying jobs in Purdue’s Discovery Park district

WEST LAFAYETTE, Ind. – Governor Eric J. Holcomb and Commerce Secretary Brad Chambers today joined Purdue University President Mitch Daniels and executives from SkyWater Technology (NASDAQ: SKYT) to announce the company’s plans to build $1.8 billion state-of-the-art semiconductor R&D and production. installation in Indiana, supported by 750 new high-paying jobs in Tippecanoe County.

“Days like today prove that Indiana’s investments in the economy of the future, infrastructure and talent development cultivate an environment that enables innovators like SkyWater to choose Indiana,” the governor said. Holcomb. “Our success and our mission to support the industries of the future would not be possible without the incredible partnerships with our world-class universities, like Purdue University, which help us attract and retain quality, innovative talent.”

Based in Bloomington, Minnesota, SkyWater plans to build a 600,000 square foot semiconductor research, development and production facility in partnership with Purdue University in West Lafayette. The facility will allow SkyWater to meet growing customer demand for accelerated access to domestic development, manufacturing and advanced packaging for microelectronics, and will house next-generation advanced manufacturing facilities.

“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 Sec. Bedrooms. “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.

“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. .”

SkyWater’s plans for a new facility in the United States are in direct response to increased demand for domestic semiconductor manufacturing. The company’s ability to make such a large investment so quickly will be the result of the federal commitment to supporting American companies as defined in the US Act funding to create useful incentives for the production of semi- conductors (CHIPS).

“For months, heads of state, including Governor Holcomb, Secretary Chambers, President Daniels, and private companies have partnered to create a semiconductor corridor here in the Heartland,” said U.S. Senator Todd. Young. “Today’s announcement is a direct result of those efforts. In Washington, we are about to make a major investment in next-generation technologies that is vital to the success of this project and future projects, and that will ensure that Indiana remains at the center of our national security economy of high technology.

“I am thrilled to celebrate Skywater’s investment in Indiana, which is great for the people of Indiana and a credit to Governor Holcomb’s leadership,” said US Secretary of Commerce Gina Raimondo. “This investment will create hundreds of high-paying, good-quality jobs for Indiana residents and help secure our semiconductor supply chain here in the United States. Semiconductors keep our cars on the road, our military jets in the air, and literally keep the lights on. Today’s announcement is a victory for American economic and national security. It is up to Congress to build on this momentum and fully fund the CHIPS Act so that we can continue to make announcements like this.

Founded in 2017, Skywater employs 600 associates in Minnesota and Florida. Details of when hiring could begin at West Lafayette and the types of positions to be filled will be made available on line at a future date.

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 announcement a partnership with the Purdue Research Foundation to host an initial SkyWater team at the WestGate @ Crane Technology Park in Odon, Indiana, adjacent to the Naval Surface Warfare Center, Crane Division (NSWC Crane).

“Today’s announcement marks a dramatic step forward in Purdue’s multiple strategic objectives over the past decade,” Chairman Daniels said. “Enriched academic and professional opportunities for our students; new research opportunities for our faculty; a transformed and more attractive environment on and near our campus; and the latest demonstration that Purdue and Greater Lafayette are now the hot new tech hub of a growing and diversifying Indiana economy. Even for the place that specializes in it, this is a real giant step.

Based on the company’s plans to invest in its Indiana operations, IEDC has committed to invest in SkyWater Technology up to $29 million in the form of contingent tax credits and $1 million in training grants based on company job creation plans. 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, which means the company is eligible for state benefits once it has made qualifying investments in innovation activities and employees have been hired and trained. Purdue University, Greater Lafayette Commerce, City of West Lafayette, City of Lafayette, County of Tippecanoe and Duke Energy offered additional incentives.

“We are thrilled to see Greater Lafayette win the site selection process for this investment from SkyWater Technology,” said Scott Walker, President and CEO of Greater Lafayette Commerce. “This demonstrates the power of collaboration between our county, our cities, Purdue University, the Purdue Research Foundation and the State of Indiana. It also demonstrates our region’s assets for working with the industries of tomorrow. We are excited to work with them through the next phases of their process and to work with our partners at Purdue University and Ivy Tech to develop the necessary semiconductor workforce.

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