• Brian Chin from Stifel Nicolaus sets a price target of $35 for SkyWater Technology (NASDAQ: SKYT), indicating a potential upside.
• IonQ's acquisition of SkyWater valued at approximately $1.8 billion aligns with the price target, suggesting strategic benefits for both companies.
• The deal is expected to streamline production timelines for IonQ, advancing its quantum computing capabilities with a 200,000-qubit quantum processing unit planned for functional testing in 2028.

SkyWater Technology (NASDAQ: SKYT) is a U.S.-based semiconductor foundry known for its role in the semiconductor industry. Recently, Brian Chin from Stifel Nicolaus set a price target of $35 for SKYT, suggesting a potential upside of about 7.64% from its trading price of $32.51. This price target aligns with the acquisition offer from IonQ, a quantum computing company.

IonQ (NYSE: IONQ) has announced a definitive agreement to acquire SkyWater Technology in a deal valued at approximately $1.8 billion. The acquisition will be executed through a cash-and-stock transaction, with SkyWater shareholders receiving $35 per share. This aligns with the price target set by Stifel Nicolaus, providing a clear path for investors.

The acquisition is strategic for IonQ, as it aims to integrate semiconductor manufacturing into its operations. This move supports the development of IonQ's next-generation quantum processors and advances its fault-tolerant computing roadmap. By acquiring SkyWater, IonQ enhances its position as a technology partner for the U.S. government and allied nations.

IonQ plans to begin functional testing in 2028 for a 200,000-qubit quantum processing unit. This will enable around 8,000 high-fidelity logical qubits, marking a significant advancement in quantum computing. The acquisition of SkyWater is expected to streamline production timelines and reduce costs, creating a vertically integrated quantum platform.

SkyWater will operate as a wholly owned subsidiary of IonQ, retaining its name and leadership under CEO Thomas Sonderman. This acquisition marks IonQ's largest move to enhance its control over the quantum technology stack, aligning with increased federal support for advanced computing. The deal values SkyWater at $35 per share, with shareholders receiving $15 in cash and $20 in IonQ stock per share.