By Thomas Sonderman, CEO, SkyWater Technology
Last week, we announced record third-quarter results. It’s a moment that reflects the progress we’ve made in advancing our financial performance and strategic market expansion and shows SkyWater’s commitment to securing America’s technological future.
When we say we’re America’s foundry, we mean it. Every day, our teams are helping restore the nation’s ability to design and build the advanced semiconductors that power everything from defense systems to quantum computers. This quarter showed what that mission looks like in action.
A Quarter That Set a New Bar
Our third quarter exceeded expectations across every major metric, with revenue reaching a record $151 million, about $9 million above the high end of the range provided last quarter. That strength came from our Advanced Technology Services business which performed ahead of plan, and our newly acquired Texas operations that delivered even stronger results than anticipated.
But what excites me most isn’t the numbers, it’s what’s behind them. With Fab 25 SkyWater is now the largest, exclusively U.S.-based, pure-play foundry semiconductor manufacturer. Our financial results reflect the continued growth of our business as we collaborate closely with customers to accelerate innovation, develop new technologies, and bring semiconductor manufacturing back to the United States.
Building on a Strong Foundation in Aerospace & Defense
A key part of our Advanced Technology Services business continues to come from Aerospace and Defense. The U.S. government has long supported SkyWater’s growth because they share our mission to secure domestic semiconductor manufacturing and safeguard the technologies that defend our nation. We’re proud to be part of that effort.
While the timing of certain government program releases can fluctuate, our long-term view remains strong. The programs we’re involved in are strategic, multi-year efforts that underpin critical national initiatives. As these programs continue, we expect to maintain a healthy baseline of A&D work, with growth through ATS in other parts of our business (e.g., Advanced Packaging and Quantum Computing) providing added momentum.
The Quantum Leap Forward
Quantum computing is a strategically important end market for SkyWater, and our investments are enabling us to play a central role as this industry transitions from research to scalable manufacturing.
In the past quarter alone, we signed four new quantum customers bringing us to seven total quantum customers including our newest Silicon Quantum Computing and QuamCore. While each represents a different architecture to building the future of computing, both will rely on SkyWater and our Technology-as-a-Service model to help turn groundbreaking research into scalable manufacturing.
We expect to exceed 30% growth in quantum-related revenue this year, with similar growth ahead in 2026. Quantum may still represent a small part of our total business today, but it’s our fastest-growing segment and one that we expect to shape our company for years to come.
Expanding Our Footprint in Texas
Our acquisition of Fab 25 in Austin earlier this year marked a turning point for SkyWater. The added capacity has nearly doubled the scale of our business and, more importantly, expanded what we’re able to deliver for our customers and the country.
In our first full quarter of operating Fab 25, we generated nearly $87 million in revenue, well ahead of expectations. The Texas team hit the ground running, and the integration across our sites in Minnesota and Florida has been seamless.
The Fab 25 acquisition expands our capacity, diversifies our customer base, and adds advanced manufacturing capabilities that open doors in new markets from automotive to industrial electronics.
It also reinforces our role in a broader national effort. The push for domestic semiconductor production isn’t just a policy goal anymore, it’s an economic and security imperative.
Leading in Advanced Packaging
Meanwhile, in Florida, we’re making great progress on one of the most forward-looking areas in our industry: Advanced Packaging.
Last year, we announced a $120 million program to expand our wafer-level fan-out capabilities. Since then, the focus has been on installing new tools and ramping up production infrastructure. We expect to begin customer prototypes in the second half of next year.
Advanced Packaging may sound technical, but its impact is easy to grasp. It’s what allows chips to become smaller, faster, and more efficient, enabling advances in everything from 5G and AI to defense systems and quantum devices.
As demand for higher performance and lower power grows, the need for these advanced solutions is growing. Analysts expect the global market for advanced packaging to reach nearly $80 billion by 2030 according to research from Yole Group. SkyWater’s expansion in Our Florida fab positions us to be a leader in that space, helping customers design and scale next-generation systems entirely within U.S. borders.
Restoring America’s Innovation Engine
As we look across our business, it’s important to pause and reflect on the broader mission that drives SkyWater. For decades, much of the world’s semiconductor production moved offshore. Today, roughly half of the foundational chips used in U.S. defense systems are built in Asia. That dependence touches everything from our power grids to our transportation networks, to our healthcare systems.
Semiconductors are the steel of the modern age. If you can’t make your own chips, you can’t control your own future.
SkyWater was created to change that. A catalyst to restore domestic capability, secure trusted production, and reignite the spirit of innovation that defines this country. And that’s what it means to be America’s foundry — a homegrown company, free of foreign control, working shoulder to shoulder with our customers to rebuild what was created here decades ago — and to ensure that America remains the place where the world’s most important technologies are born, built, and launched.
Looking Ahead
Our outlook remains strong. We expect to deliver record results again in Q4, driven by continued strength in Texas and ongoing momentum in Quantum and Advanced Packaging.
But more important than any number is what those results represent, which is the steady progress toward a future where America designs, builds, and scales its most critical technologies onshore.
We’re proud of what we’ve accomplished this year. But we’re even more excited about what’s ahead. From restoring trusted manufacturing to enabling breakthroughs in quantum computing, SkyWater is proving what’s possible when innovation, collaboration, and purpose align.
For more details on our third-quarter performance and outlook, as well as information on non-GAAP measures and risks and uncertainties relating to forward-looking statements, you can view our Investor Presentation on our investor relations site: Q3 2025 Quarterly Results