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SkyWater to Leverage $36.5M Department of Commerce Grant to the Florida Semiconductor Coalition to Expand its Advanced Packaging Facility Operations in Florida

By: via Business Wire

Grant is part of $50.8M award from the Economic Development Administration’s Build Back Better Regional Challenge to grow Osceola County’s NeoCity as an innovation center for semiconductor research, design and manufacturing

SkyWater Technology(NASDAQ: SKYT), the trusted technology realization partner, today announced that $50.8M has been awarded to Osceola County Board of County Commissioners for building Central Florida’s Semiconductor Cluster for Broad-Based Prosperity, as part of the U.S. Department of Commerce Economic Development Administration’s (EDA’s) Build Back Better Regional Challenge. The Osceola County-led Prosperity Coalition Proposal will build upon the initial success of NeoCity, by investing in infrastructure, workforce development and community reinvestment that leverages new, high-demand production processes to propel Central Florida as a leader for semiconductor research, development and manufacturing.

EDA funds will be allocated among six component projects, two of which include $36.5M in federal funding for enhancements to SkyWater’s advanced packaging operations at the Center for Neovation: expansion and facilitization of the clean room and purchase and installation of tools and machinery. Pursuant to the award, SkyWater will provide a 20% “matching share” of the project costs associated with the facility.

Coalition partners include the Orlando Economic Partnership, the University of Central Florida (UCF), BRIDG, SkyWater, the Florida High Tech Corridor and Valencia College. The Osceola County coalition was one of 21 winners out of over 500 submissions and the only recipient from the semiconductor industry.

“The Biden Administration is committed to increasing domestic semiconductor production, strengthening R&D leadership, and growing a diverse workforce for this critical industry,” said U.S. Secretary of Commerce Gina Raimondo. “This is a transformative investment that will diversify the state’s economy, revitalize the community around an industry of the future, and support the development and manufacture of low-volume, highly customized semiconductor products that are vital to Florida’s aerospace, defense, and medical industries.”

“This Build Back Better Grant will help address the microchip shortage, lower costs and boost local high paying jobs,” said Congressman Darren Soto (FL-09).

“We are excited to participate in this Build Back Better award, which was secured through the exceptional efforts of Osceola County, BRIDG and members of the coalition, and we commend the Biden administration’s focus on public-private partnerships to propel American semiconductor R&D and manufacturing to the next level,” said SkyWater President and CEO, Thomas Sonderman. “The progress made to date at NeoCity in such a brief time is outstanding. SkyWater is committed to growing our operations at the Center for Neovation with the support of this funding to accelerate the reshoring of the semiconductor supply chain.”

SkyWater’s ecosystem partners at the Center for Neovation include BRIDG, a nonprofit focused on building the ecosystem at NeoCity, Interuniversity Microelectronics Centre (IMEC), an international research and development organization active in the fields of nanoelectronics and digital technologies; Tokyo Electron (TEL), a leading provider of semiconductor equipment; and SUSS MicroTec, a leading provider of advanced packaging and hybrid bonding tooling, among others. To learn more about NeoCity, visit Orlando.org/neocity.

About SkyWater Technology

SkyWater (NASDAQ: SKYT) is a U.S.-owned semiconductor manufacturer and a DMEA-accredited Category 1A Trusted Foundry. SkyWater’s Technology as a ServiceSM model streamlines the path to production for customers with development services, volume production and heterogeneous integration solutions in its world-class U.S. facilities. This pioneering model enables innovators to co-create the next wave of technology with diverse categories including mixed-signal CMOS, ROICs, rad-hard ICs, power management, MEMS, superconducting ICs, photonics, carbon nanotubes and interposers. SkyWater serves growing markets including aerospace & defense, automotive, biomedical, cloud & computing, consumer, industrial and IoT. For more information, visit: www.skywatertechnology.com.

SkyWater Technology Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on the Company’s current expectations or forecasts of future events, rather than past events and outcomes, and such statements are not guarantees of future performance. Forward-looking statements are subject to risks, uncertainties and assumptions, which may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Key factors that could cause the Company’s actual results to be different than expected or anticipated include, but are not limited to, factors discussed in the “Risk Factors” section of its annual report on Form 10-K and quarterly reports on Form 10-Q, and in other documents that the Company files with the SEC, which are available at http://www.sec.gov. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

SKYT-CORP

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