IonQ, a quantum computing company, has made a bold move by acquiring domestic manufacturing giant SkyWater for $1.8 billion to help secure long-term orders from the US Department of Defense.

According to reports, quantum computing company IonQ Inc. (IONQ.US) has agreed to acquire SkyWater Technology (SKYT.US), valuing the chip manufacturer at around 1.8 billion dollars. IonQ will acquire the Minnesota-based company in a cash and stock deal, offering $35 per share. The stock portion of the deal is reportedly subject to price range restrictions to limit any significant impact on IonQ's stock price. IonQ CEO Niccolo de Masi stated that this deal aligns with Trump's goal of revitalizing the American semiconductor industry. SkyWater touts itself as a fully American chip foundry, in contrast to most of its competitors which are based in Asia and Europe. Based in Maryland, IonQ is a quantum computing hardware and software company aiming to mainstream this technology. SkyWater is the only pure-play semiconductor foundry in the United States. By acquiring SkyWater, IonQ gains a trusted American production line, mitigating supply chain risks for quantum chips (QPUs) from design, prototyping to mass production. Due to SkyWater's "Made in the USA" attribute, IonQ now has easier access to long-term, lucrative contracts with the US Department of Defense and Security. This stability resembling "defense-like stocks" is something tech-focused companies lack. Companies like IonQ with in-house foundries (via SkyWater) may see a significant valuation premium by 2026, as they solve the biggest bottleneck in commercializing quantum computing: supply chain independence. IonQ recently established a federal department (IonQ Federal) and acquiring SkyWater will strengthen its position in supporting US defense and national security projects. Quantum computers encode data in units called quantum bits and leverage the unique properties of subatomic structures to generate immense computing power. While this technology holds immense potential in fields like science, finance, and healthcare, the cost of quantum computers remains high, primarily used by researchers. Some political officials believe this technology is crucial for national security, as it could potentially disrupt traditional computer network security systems. Last year, IonQ acquired quantum computing startup Oxford Ionics for 1.08 billion dollars. SkyWater's stock closed at $31.32 per share in New York last Friday, with a market cap of around 1.5 billion dollars; as of writing, pre-market trading on Monday saw its stock price rise by approximately 6%. IonQ's stock closed at $47.25 per share in New York last Friday.