SKYT

Technology

SkyWater Technology, Inc. · Semiconductors · $2B

UQS Score — Balanced Preset
39.3
Below Average

SkyWater Technology, Inc. scores 39.3/100 using the Balanced preset.

UQS vs Technology Sector
SKYT
39.3
Sector avg
38.0
Quality
Weak
Moat
Weak
Growth
Good
Risk
Weak
Valuation
Good

What is SkyWater Technology, Inc.?

SkyWater Technology is a US-based semiconductor foundry offering custom chip development and manufacturing services. Headquartered in Bloomington, Minnesota, it serves a broad range of industries from aerospace and defense to bio-health and automotive.

SkyWater generates revenue by partnering with customers to co-develop and manufacture specialized semiconductor devices. Its services span process engineering, design support, and volume production of silicon-based analog, mixed-signal, power discrete, microelectromechanical systems (MEMS), and radiation-hardened integrated circuits. Rather than competing in the high-volume consumer chip market, SkyWater focuses on differentiated, application-specific programs — particularly for government and defense customers — where specialized process expertise commands a premium.

SkyWater Technology was incorporated in 2017 and is headquartered in Bloomington, Minnesota.

  • Custom semiconductor process development and engineering support
  • Analog and mixed-signal integrated circuit manufacturing
  • Radiation-hardened (rad-hard) chip fabrication for aerospace and defense
  • Microelectromechanical systems (MEMS) manufacturing services
  • Power discrete device production for automotive and industrial applications

Is SKYT a Good Stock to Buy?

UQS Score rates SKYT as Below Average overall, reflecting meaningful structural challenges alongside a pocket of genuine growth potential.

The Growth pillar stands out as the clearest bright spot in SkyWater's profile, suggesting the company is expanding its business at a pace that compares favorably within its niche. Valuation is rated Attractive, meaning the market may not yet be fully pricing in the company's growth trajectory — a combination that some investors find worth monitoring.

Quality, Moat, and Risk all carry Weak ratings, pointing to thin competitive insulation, below-average financial durability, and elevated business risk relative to sector peers.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does SKYT pay dividends?

No — SkyWater Technology, Inc. does not currently pay a dividend.

SkyWater Technology does not currently pay a dividend. As a growth-oriented semiconductor foundry still scaling its operations and customer programs, the company directs available capital toward process development, capacity expansion, and securing new program wins rather than returning cash to shareholders through distributions.

When does SKYT report earnings?

SkyWater Technology reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

SkyWater's quarterly results tend to reflect the project-driven nature of its business, where revenue can shift based on program milestones and government contract timing. Investors should watch for updates on program backlog, technology development agreements, and manufacturing utilization as key indicators of operational progress.

For the most recent quarter's results and management commentary, visit SkyWater Technology's investor relations page directly.

SKYT Price History

+29.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

SKYT Long-term Outlook

SkyWater's fundamental outlook is shaped by the tension between a Good Growth profile and Weak Quality and Risk ratings. The company operates in a segment — domestic, specialty semiconductor manufacturing — that benefits from long-term structural tailwinds, including US government investment in onshore chip production. However, the path to sustained profitability remains uncertain, and execution risk is elevated given the capital-intensive nature of foundry operations.

Growth drivers

  • Expanding US government and defense demand for domestically manufactured, radiation-hardened chips
  • Growing adoption of MEMS and specialty analog devices across automotive and industrial IoT markets
  • Technology development agreements that can convert into long-term volume manufacturing programs

Key risks

  • Weak Quality and Risk pillar ratings signal below-average financial resilience and potential balance sheet pressure
  • Thin competitive moat leaves SkyWater exposed to larger, better-capitalized foundry competitors
  • Program concentration and government contract dependency can create lumpy, unpredictable revenue

SKYT vs Peers

SkyWater operates in the specialty semiconductor services space alongside a range of niche foundry and semiconductor equipment peers.

IMOSSKYT scores higher
ChipMOS TECHNOLOGIES Inc.

ChipMOS focuses on semiconductor testing and assembly outsourcing, serving memory and display driver chip customers rather than custom process development.

DQSKYT scores higher
Daqo New Energy Corp.

Daqo operates in polysilicon production for solar applications, making it a materials supplier rather than a semiconductor foundry.

COHUSKYT scores higher
Cohu, Inc.

Cohu provides semiconductor test and handling equipment, sitting upstream in the chip supply chain rather than offering foundry manufacturing services.

Frequently Asked Questions

What does SkyWater Technology do?

SkyWater Technology is a specialty semiconductor foundry that partners with customers to develop and manufacture custom chips. Its focus areas include analog and mixed-signal circuits, radiation-hardened devices for aerospace and defense, MEMS, and power discrete components — serving industries where standard off-the-shelf chips are not sufficient.

Does SKYT pay dividends?

No, SkyWater Technology does not currently pay a dividend. The company is in a growth and investment phase, prioritizing capital allocation toward process development and program expansion over shareholder distributions.

When does SKYT report earnings?

SkyWater reports financial results on a quarterly basis, in line with standard US public company practice. For exact dates and the latest earnings releases, check SkyWater's official investor relations page.

Is SKYT a good stock to buy?

UQS Score rates SKYT as Below Average overall. While the Growth pillar and an Attractive Valuation rating offer some appeal, Weak scores across Quality, Moat, and Risk indicate meaningful challenges. Investors should weigh those structural concerns carefully. The full pillar breakdown is available to UQS Pro members.

Is SKYT overvalued?

Based on the UQS Valuation pillar, SKYT is rated Attractive — suggesting the current market price may not fully reflect the company's growth potential. However, an attractive valuation alone does not offset the Weak ratings in Quality and Risk, which are equally important to a complete investment picture.

How does SKYT compare to its competitors?

SkyWater occupies a distinct niche in specialty and government-focused semiconductor manufacturing, which differentiates it from peers like ChipMOS (testing and assembly), Cohu (test equipment), and Daqo (solar polysilicon). Its closest competitive overlap is with other domestic foundries targeting defense and advanced process programs.

What is SKYT's market cap bracket?

SkyWater Technology is classified as a small-cap company. This places it in a segment of the market that can offer higher growth potential but typically carries greater volatility and liquidity risk compared to large- or mega-cap peers.

Who founded SkyWater Technology?

SkyWater Technology was incorporated in 2017. The company traces its roots to the former Cypress Semiconductor fabrication facility in Bloomington, Minnesota, which was acquired and rebranded. Detailed founding history is publicly available through the company's official communications.

Is SKYT a long-term quality indicator?

From a long-term quality standpoint, SKYT's UQS profile presents a mixed picture. The Good Growth rating suggests expanding business momentum, but Weak Quality and Moat ratings indicate the company has not yet built the durable competitive advantages typically associated with long-term compounders. Sustained improvement in those pillars would strengthen the long-term case.

What is the main competitive advantage of SkyWater Technology?

SkyWater's primary differentiation lies in its position as one of the few US-based specialty foundries capable of producing radiation-hardened and MEMS devices for government and defense customers. This domestic manufacturing capability aligns with policy-driven demand for onshore semiconductor production, though the UQS Moat pillar currently rates this advantage as Weak.

What sector does SKYT belong to?

SkyWater Technology operates in the Technology sector, specifically within semiconductor manufacturing and foundry services. It sits in a specialized sub-segment focused on custom process development rather than high-volume commodity chip production.

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Pro Analysis

SKYT — Score History

303540455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 5 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 14, 202639.831.819.066.817.873.9-6.4
May 12, 202646.231.819.066.858.975.6+3.6
May 6, 202642.635.319.066.816.388.1+0.1
Apr 18, 202642.535.319.066.616.388.1-0.3
Apr 2, 202642.835.319.066.616.389.9

SKYT — Pillar Breakdown

Quality

31.8/100 (25%)

SkyWater Technology, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

66.8/100 (20%)

SkyWater Technology, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendModerate

Revenue trajectory over the last twelve months.

3Y Revenue CAGRModerate

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Risk

17.8/100 (15%)

SkyWater Technology, Inc. presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

70.6/100 (15%)

SkyWater Technology, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

19/100 (25%)

SkyWater Technology, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SKYT.

Score Composition

Quality
31.8×25%8.0
Growth
66.8×20%13.4
Risk
17.8×15%2.7
Valuation
70.6×15%10.6
Moat
19.0×25%4.8
Total
39.3Below Average

Financial Data

More Stock Analysis

How is the SKYT UQS Score Calculated?

The UQS (Unified Quality Score) for SkyWater Technology, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses SkyWater Technology, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether SkyWater Technology, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.