Dive Brief:
- IonQ on Monday said it will buy SkyWater Technology for $1.8 billion, accelerating its ability to develop and scale production of quantum computing goods and services for aerospace and defense customers.
- The combination will add semiconductor foundry capabilities to IonQ, positioning itself as a major vertically-integrated, full-stack quantum platform company in the U.S., according to a news release.
- The cash-and-stock transaction, which values SkyWater at $35 per share, is expected to close by the end of September pending standard regulatory and shareholder approvals.
Dive Insight:
The deal comes as competing quantum companies look to expand their partnerships with the U.S. government. D-Wave Quantum, which is relocating its headquarters from California to Florida, said it formed a U.S. government business unit in December to drive quantum adoption for national security and defense.
In September, IonQ created IonQ Federal to meet growing demand as some of its largest contracts and partnerships come from the U.S. government and allied countries. Earlier this month, the company hired Kate Arrington, a former state legislator and chief information officer for the Department of Defense, to lead as its CIO.
The combination with SkyWater, if approved, would quicken IonQ’s development of fault-tolerant quantum computers, which are designed to operate correctly even in the presence of errors. Quantum computers are able to solve problems too complex for typical computers, allowing for enhanced physical simulation, discovery and more.
The U.S. government has made quantum a priority as it looks to become a global technology leader and increase its ability to mitigate potential threats, including quantum computer attacks. In October, the Wall Street Journal reported that the government was looking to secure equity stakes in quantum companies. However, shortly after publication the Commerce Department denied that talks were happening.
“Skywater adds the final piece, semiconductors, to IonQ’s existing U.S.-based manufacturing,” IonQ CEO and Chairman Niccolo de Masi said on an investor call Monday. “We believe we will be the only completely U.S.-owned and U.S.-operated provider of these quantum technologies so critical to our nation’s future.”
SkyWater, considered to be a “trusted foundry” by the Defense Department, has production facilities in Minnesota, Florida and Texas, where it fabricates 200-millimeter chips for customers across aerospace, defense, automotive and quantum. CEO and Director Thomas Sonderman said on the call that there will be no changes to customer access or intellectual property protections following the acquisition.
SkyWater will act as a wholly-owned subsidiary under the SkyWater name, according to the release, with Sonderman leading the organization and reporting directly to de Masi.
IonQ expects to see a “significant reduction” in development and production cycles with SkyWater’s support, de Masi said, shortening turnaround times from design completion to first chip samples from nine to two months. He also said IonQ will now be able to test its first 200,000 quantum-bit chip samples in 2028.
IonQ is scheduled to report its fourth quarter and annual 2025 earnings in February. De Masi said the company expects to deliver full-year revenue near or above the $106 million to $110 million range. The company is also pushing back its investor day from March to sometime in the third quarter due to the pending deal with SkyWater.
