12 Small-Cap Semiconductor Stocks to Buy Now

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10. SkyWater Technology Inc. (NASDAQ:SKYT)

Market Capitalization: $464 million

Number of Hedge Funds: 15

SkyWater Technology Inc. (NASDAQ:SKYT) is a U.S.-based semiconductor foundry specializing in advanced semiconductor development, manufacturing, and packaging services for integrated circuits. The company offers a unique, pure-play technology foundry model through its Technology-as-a-Service (TaaS) approach. SkyWater provides a range of services, including custom semiconductor design, fabrication, and packaging, serving sectors such as aerospace, defense, automotive, and industrial applications.

SkyWater Technology Inc. (NASDAQ:SKYT) recently signed a preliminary memorandum of terms (PMT) with the U.S. Department of Commerce for up to $16 million under the CHIPS for America program. This funding aims to boost production capabilities at its Minnesota facility, benefiting markets like aerospace, defense, biomedical, industrial, thermal imaging, and quantum computing. The $16 million CHIPS Program funds will be combined with $19 million in incentives from Minnesota’s Forward Fund, complementing the company’s planned $320 million CapEx co-investments through 2026. This brings the total anticipated external investment to over $350 million this decade.

Additionally, SkyWater Technology Inc. (NASDAQ:SKYT) will leverage the Advanced Manufacturing Investment Tax Credit, expected to cover up to 25% of qualified capital expenditures. The company plans to use the funds to increase U.S.-based 200 mm semiconductor technology production capacity by 30%, create approximately 70 jobs in Bloomington, modernize the facility, ensure a consistent silicon supply for DOD and commercial programs, and accelerate technology development for customers.

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