In a move poised to reshape the quantum landscape, IonQ (NYSE: IONQ) announced today it will acquire SkyWater Technology (NASDAQ: SKYT) for approximately $1.8 billion in a cash-and-stock transaction. This acquisition secures a crucial U.S.-based supply chain for IonQ, embedding access to a trusted domestic foundry and accelerating the development of its fault-tolerant quantum computing roadmap. The combined company will become the first vertically integrated quantum platform, with plans for 200,000 qubit QPUs enabling 8,000 ultra-high fidelity logical qubits expected to begin functional testing in 2028. “This transformational acquisition enables IonQ to materially accelerate its quantum computing roadmap and secure its fully scalable supply chain domestically,” said Niccolo de Masi, IonQ Chairman and Chief Executive Officer.
IonQ Acquires SkyWater for $1.8 Billion
The race to build a fully functional quantum computer just took a significant leap forward as IonQ (NYSE: IONQ) announced its acquisition of SkyWater Technology (NASDAQ: SKYT) in a deal valued at approximately $1.8 billion. The cash-and-stock transaction, set at $35.00 per share, isn’t simply about consolidation; it’s a strategic vertical integration poised to address critical supply chain vulnerabilities within the burgeoning quantum industry. IonQ anticipates the acquisition will accelerate its fault-tolerant quantum computing roadmap, with functional testing of 200,000-qubit QPUs – capable of 8,000 ultra-high fidelity logical qubits – slated to begin in 2028.
This ambitious timeline hinges on securing domestic manufacturing capabilities, a key driver behind the deal. The acquisition isn’t just about qubits; it’s about building a complete quantum ecosystem. IonQ plans to leverage SkyWater’s expertise as the largest exclusively U.S.-based, pure-play semiconductor foundry to streamline the entire process, from design to delivery, for its expanding portfolio of quantum technologies. This includes not only quantum computing itself but also quantum networking, security, and sensing applications, spanning land, sea, air, and space.
The move positions IonQ as a favored partner for the U.S. government and its allies, ensuring a secure and reliable source for advanced quantum systems. SkyWater will continue operating as a pure-play semiconductor foundry and merchant supplier, but with a sharpened focus on supporting IonQ’s ambitious goals and serving a broader quantum market. “SkyWater is an unrivaled technology innovation partner, and with IonQ’s existing quantum sensing and quantum networking capabilities it will become the preeminent quantum merchant supplier under the continued leadership of Thomas Sonderman,” de Masi continued.
The combined entity will also maintain SkyWater’s regional quantum production hubs in Minnesota, Florida, and Texas, solidifying a domestic manufacturing base. Thomas Sonderman, Chief Executive Officer of SkyWater Technology, emphasized the synergy, stating, “This combination marks a pivotal moment in SkyWater’s evolution.” He further explained that joining forces will “accelerate multiple engineering pathways for next-generation quantum chips, delivering speed, precision, and scale.” The deal, expected to close in the second or third quarter of 2026 pending shareholder and regulatory approvals, represents a bold bet on the future of quantum technology and a commitment to American leadership in this crucial field.
200,000 Qubit QPUs & 2028 Functional Testing Goals
IonQ is aggressively scaling its quantum processing capabilities, targeting a formidable 200,000-qubit quantum processing unit (QPU) and initiating functional testing by 2028. This ambitious goal, enabled by the acquisition of SkyWater Technology for approximately $1.8 billion, aims to deliver “8,000 ultra-high fidelity logical qubits,” a significant leap towards fault-tolerant quantum computation. The move isn’t simply about increasing qubit count, but about establishing a vertically integrated platform capable of handling the complexities of advanced quantum technologies. The acquisition of SkyWater, the largest exclusively U.S.-based pure-play semiconductor foundry, is central to realizing this roadmap.
SkyWater’s facilities in Minnesota, Florida, and Texas will function as “Regional Quantum Production Hubs,” ensuring a domestic source for critical chip fabrication. This strategic alignment aims to address supply chain vulnerabilities and bolster U.S. leadership in quantum technology. The company also anticipates that the acquisition will accelerate the development of a 2,000,000 qubit chip by up to one year. Beyond raw qubit numbers, IonQ emphasizes fidelity – the accuracy of quantum operations. In 2025, the company reported achieving “99.99% two-qubit gate fidelity,” a world record demonstrating significant progress in minimizing errors.
This focus on high-fidelity qubits is essential for building practical, reliable quantum computers capable of tackling complex problems. The combined IonQ and SkyWater platform is designed to facilitate “secure end-to-end design through delivery” of these advanced quantum technologies. This collaboration signifies a shift towards a more robust and integrated quantum ecosystem, poised to drive innovation across multiple sectors.
U.S. Domestic Supply Chain for Quantum Technologies
This move isn’t simply about consolidating companies; it’s a strategic maneuver to secure a fully scalable, U.S.-based supply chain critical for the development and deployment of quantum technologies. IonQ, described as “the world’s leading quantum company,” is integrating vertically, bringing chip fabrication, design, and packaging under one roof to accelerate progress in a field heavily reliant on specialized manufacturing. The acquisition aims to address vulnerabilities in the current supply chain, mitigating risks associated with reliance on foreign foundries for these sensitive technologies. This integration is projected to have a tangible impact on IonQ’s ambitious development roadmap.
IonQ intends to leverage SkyWater’s capabilities to support applications “for land, sea, air, and space,” positioning the combined entity as a key partner for the U.S. government and its allies. “We are confident that uniting our revolutionary quantum platform with SkyWater’s leading capabilities in parallel innovation, engineering, and manufacturing, will accelerate America’s ability to deploy quantum technology for mission critical applications,” de Masi continued. The deal signals a clear intent to establish the U.S. as a dominant force in quantum technology, not just in innovation, but also in manufacturing.
Sonderman emphasized that, “As the largest pure-play semiconductor foundry based in the U.S., SkyWater is already the partner of choice for advanced development and manufacturing services in both the public and private sectors as quantum computing and manufacturing increasingly align.” The combination creates a “first of its kind, vertically integrated quantum platform company,” poised to deliver breakthroughs across diverse industries, from pharmaceuticals to finance.
SkyWater to Remain Quantum Merchant Supplier
Crucially, the agreement ensures SkyWater will not be absorbed into IonQ’s operations, but rather will continue functioning as a dedicated, independent semiconductor foundry – a “pure-play merchant supplier,” as the companies emphasize. This preservation of SkyWater’s existing business model is a key element of the acquisition, securing a vital domestic supply chain for advanced quantum technologies. The deal, announced today, represents a significant step towards bolstering U.S. leadership in a strategically important field. This isn’t simply about adding qubit manufacturing capacity; it’s about establishing a fully integrated platform.
The combined entity aims to streamline the development process, from initial design to final chip fabrication, encompassing quantum computing, networking, security, and sensing applications. SkyWater shareholders will receive $15.00 in cash and $20.00 in IonQ stock per share, potentially owning between 4.4% and 6.7% of the combined company.
99% Two-Qubit Gate Fidelity Achieved in 2025
IonQ demonstrated a significant leap forward in quantum computing precision in 2025, achieving 99.99% two-qubit gate fidelity – a new world record. This benchmark signifies a substantial reduction in error rates, crucial for executing complex quantum algorithms and bringing fault-tolerant quantum computers closer to reality. While still requiring error correction, this level of fidelity dramatically improves the reliability of quantum operations, moving beyond the noisy intermediate-scale quantum (NISQ) era. The achievement underscores IonQ’s commitment to pushing the boundaries of quantum performance and solidifies its position as a leader in the field.
This breakthrough wasn’t simply a matter of incremental improvement; it represents a critical step toward scalable and practical quantum computation. Two-qubit gates, which entangle and manipulate pairs of qubits, are fundamental building blocks for any quantum algorithm. Higher fidelity in these gates directly translates to fewer errors accumulating during calculations, enabling more complex and lengthy quantum programs to run successfully. IonQ’s success is particularly noteworthy given the inherent challenges in maintaining qubit coherence and controlling quantum states with extreme precision.
The company’s proprietary technology and architecture, combined with ongoing advancements in qubit control, are demonstrably yielding results. “In 2025, the company achieved 99.99% two-qubit gate fidelity, setting a world record in quantum computing performance,” the company stated. The implications of this achievement extend beyond basic research. IonQ anticipates that this improved fidelity will accelerate progress in diverse fields, including drug discovery, materials science, financial modeling, and cybersecurity. The company highlights existing partnerships with organizations like Amazon Web Services, AstraZeneca, and NVIDIA as proof of concept for applying quantum computing to real-world problems.
These QPUs aim to deliver 8,000 ultra-high fidelity logical qubits, representing another significant advance in quantum processing power. Looking ahead, IonQ’s recent acquisition of SkyWater Technology is positioned to further accelerate this progress.
