Quantum chipmaker IonQ to acquire fab operator SkyWater for $1.8B

Quantum chip developer IonQ Inc. today announced plans to acquire SkyWater Technology Foundry Inc. for $1.8 billion.

SkyWater was formed in 2017 from a former unit of Cypress Semiconductor Corp., an early memory manufacturer. One of its specialties is making cryogenic control electronics for quantum computers. That capability may have been one of the factors behind IonQ’s decision to swoop in.

NYSE-listed IonQ makes quantum processors powered by ions, atoms with an electrical charge. Last year, it inked a $1.075 billion deal to acquire Oxford Ionics Ltd., a fellow quantum chip developer that also uses ions as qubits. Those qubits are coordinated by cryogenic control electronics, one of the hardware varieties that SkyWater can make at its fabs.

Oxford Ionics implemented its control electronics on a compact silicon chip. The chip can be placed inside the cryogenic fridge that contains the host quantum computer’s ion qubits. According to the company, its quantum control chip can be made using standard semiconductor manufacturing processes. That makes the technology more cost-efficient than the highly specialized laser devices typically used to control ion qubits.

Besides quantum computer components, SkyWater also makes a range of other products. Its fabs can produce parts for fiber-optic networks, including modulators that encode data into light beams. In the auto sector, SkyWater offers infotainment system processors and vehicle sensors such as lidars.

The company’s flagship Texas fab has more than 91,000 square feet of cleanroom space dedicated to chip manufacturing. It also hosts a 30,000-square-foot facility that can be used for tasks such as testing new processor designs. The fab makes chips based on 65-nanometer technology, which is slower and more cost-efficient than the nodes used to make cutting-edge processors such as graphics cards. 

IonQ says the acquisition will enable it to accelerate its quantum hardware development efforts. In particular, the company plans to test multiple prototypes in parallel and speed up wafer iteration times. IonQ disclosed that it intends to start testing a 200,000-qubit processor in 2028.

“Joining forces with IonQ will accelerate multiple engineering pathways for next-generation quantum chips, delivering speed, precision and scale,” said SkyWater Chief Executive Officer Thomas Sonderman.

The companies also expects the deal to unlock other benefits. After the acquisition closes, SkyWater will promote IonQ’s quantum sensors and network equipment to its customers. That network equipment includes, among other products, appliances capable of encrypting traffic using post-quantum cryptography. IonQ’s sensors, in turn, can be used for tasks such as measuring the host system’s position.

SkyWater will continue making chips for other customers, including quantum hardware makers. That means IonQ could become a supplier to some of its competitors. Several other companies make quantum processors based on ion-powered qubits. There are also quantum chips that swap ions for superconducting circuits, which SkyWater can produce as well.

The fab operator’s investors are set to receive $15 in cash and $20 worth of IonQ stock for each share. The companies expect to close the acquisition in the second or third quarter.

Photo: IonQ