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Revenue
 12 Months Ended
Dec. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue
The Company recognizes ATS development, tools, and Wafer Services revenues pursuant to its revenue recognition policies as described in Note 3 – Summary of Significant Accounting Policies. The following tables disclose revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers:
Fiscal Year Ended December 29, 2024
Topic 606 Revenue
Lease Revenue Per Topic 842
Point-in-TimeOver TimeTotal Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$— $140,482 $— $140,482 
Fixed price contracts12,665 80,830 — 93,495 
Other— — 4,668 4,668 
Total ATS development12,665 221,312 4,668 238,645 
Wafer Services
1,803 25,058 — 26,861 
Combined ATS development and Wafer Services14,468 246,370 4,668 265,506 
Tools
76,763 — — 76,763 
Total$91,231 $246,370 $4,668 $342,269 

Fiscal Year Ended December 31, 2023
Topic 606 Revenue
Lease Revenue Per Topic 842
Point-in-TimeOver TimeTotal Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts— $122,343 — $122,343 
Fixed price contracts— 83,893 — 83,893 
Other— — 4,668 4,668 
Total ATS development— 206,236 4,668 210,904 
Wafer Services
7,564 53,563 — 61,127 
Combined ATS development and Wafer Services7,564 259,799 4,668 272,031 
Tools14,651 — — 14,651 
Total$22,215 $259,799 $4,668 $286,682 

Fiscal Year Ended January 1, 2023
Topic 606 Revenue
Lease Revenue Per Topic 842
Point-in-TimeOver TimeTotal Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$— $85,294 $— $85,294 
Fixed price contracts— 47,938 — 47,938 
Other— — 4,668 4,668 
Total ATS development— 133,232 4,668 137,900 
Wafer Services (1)
20,212 53,283 $— $73,495 
Combined ATS development and Wafer Services20,212 186,515 4,668 211,395 
Tools1,546 — — 1,546 
Total$21,758 $186,515 $4,668 $212,941 

__________________
(1)As discussed in Note 3 – Summary of Significant Accounting Policies, in March 2022, the Company signed a new contract with a significant Wafer Services customer that resulted in a change from the point in time revenue recognition method to the over-time, input revenue recognition method. As a result of the transition, the Company recognized a one-time, cumulative adjustment to Wafer Services revenue of $8,290 for wafers still being manufactured at the time the new contract became enforceable. For the fiscal year ended January 1, 2023, $11,049 of Wafer Services revenues were recognized using the point in time method related to the period before the new contract was enforceable and $48,798 of Wafer Services revenues, inclusive of the one-time, cumulative adjustment, were recognized using the over-time, input method after the contract was enforceable.

Deferred Contract Costs
The Company recognizes an asset for the incremental costs of obtaining a contract with a customer (i.e., deferred contract costs) when costs are considered recoverable and the duration of the contract is in excess of one year. Deferred costs are amortized as the related revenue is recognized. The Company recognized amortization of deferred contract costs totaling $172, $847, and $1,885 for the fiscal years ended December 29, 2024, December 31, 2023, and January 1, 2023, respectively. There were no deferred contract costs capitalized as of December 29, 2024.
Contract Assets
Contract assets represent SkyWater’s rights to payments for services it has transferred to its customers, but has not yet billed to its customers. Contract assets were $20,890 and $29,666 at December 29, 2024 and December 31, 2023, respectively, and are presented net of allowances for credit losses of $42 and $99, respectively. The table below shows contract asset detail information on a gross basis:
Balance at January 1, 2023$34,625 
Transfers to accounts receivable, net(33,868)
Increase due to revenue recognized in advance of customer billings29,008 
Balance at December 31, 202329,765 
   Transfers to accounts receivable, net(29,230)
   Increase due to revenue recognized in advance of customer billings 20,397 
Balance at December 29, 2024$20,932 
Contract Liabilities
The Company’s contract liabilities principally consist of deferred revenue on customer contracts and deferred lease revenue representing customer prepayments on a leasing arrangement in which the Company serves as lessor. Deferred revenue on customer contracts represents payments from customers for which performance obligations have not yet been satisfied. In some instances, cash may be received, or payment may be contractually due by a customer before the related revenue is recognized. The contract liabilities and other significant components of contract liabilities at December 29, 2024 and December 31, 2023 are as follows:
 December 29, 2024December 31, 2023
Contract
Deferred
Revenue (1)
Lease Deferred 
Revenue
Total
Contract
Liabilities
Contract
Deferred
Revenue (1)
Lease Deferred
Revenue
Total
Contract
Liabilities
Current contract liabilities$53,222 $1,944 $55,166 $44,883 $4,668 $49,551 
Long-term contract liabilities51,901 — 51,901 63,810 1,944 65,754 
Total contract liabilities$105,123 $1,944 $107,067 $108,693 $6,612 $115,305 
__________________
(1)Contract deferred revenue includes $48,200 and $59,323 at December 29, 2024 and December 31, 2023, respectively, related to material rights provided to a significant customer in exchange for funding additional manufacturing capacity. Of these amounts, $11,123 and $11,123 were classified as current in the consolidated balance sheets at December 29, 2024 and December 31, 2023, respectively
The change in contract liabilities is as follows:
Balance at January 1, 2023$84,875 
Revenue recognized included in the balance at the beginning of the year(22,014)
Increase due to payments received, excluding amounts recognized as revenue
45,832 
Balance at December 31, 2023108,693 
Revenue recognized included in the balance at the beginning of the year(63,575)
Increase due to payments received, excluding amounts recognized as revenue
60,005 
Balance at December 29, 2024$105,123 
Remaining Performance Obligations
At December 29, 2024, the Company had $213,529 of remaining performance obligations that had not been fully satisfied on contracts with original expected durations of one year or more, which were primarily related to ATS development and tools contracts. The Company expects to recognize the revenue associated with these performance obligations as it satisfies the performance obligations within the next 4.3 years.
The Company does not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Furthermore, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between when it transfers a promised good or service to a customer and when the customer pays for that good or service is expected to be one year or less.
Contract Estimates
Transaction prices are established at, or prior to, entering into customer arrangements. The Company recognizes transaction prices as revenue by allocating the transaction price associated with a contract to the performance obligations included in that contract based on estimates of the selling price for those performance obligations on a standalone basis. The terms of a contract and historical business practices can, but generally do not, give rise to the inclusion of variable consideration in the Company’s customer contracts. To the extent a customer contract includes variable consideration, the allocated transaction price reflects the Company’s estimates of variable consideration. Estimates of variable consideration reflect the amount the Company expects to receive from its customers and considers the uncertainty of meeting the conditions to earn the variable consideration so as to avoid significant reversals of revenue as those uncertainties are resolved. Estimates of variable consideration are based largely on an assessment of the Company’s anticipated performance and all historical, current, and forecasted information that is reasonably available at contract inception. There are no significant instances where variable consideration is constrained and not considered as part of the allocated contract consideration.
Contract Modifications
When contracts are modified to account for changes in contract specifications and requirements, the Company evaluates whether the modification either creates new, or changes existing, enforceable rights and obligations in the original contract. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original product or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is adjusted prospectively with either an upward or downward revision to revenue recognized using the cumulative catch-up method. When a contract modification adds new performance obligations to the original contract, the old contract is terminated and the modified contract is treated as a new contract for accounting purposes with revenue recognition commencing with a new accounting basis. During the year ended December 29, 2024, the Company had two significant contract modifications with customers which include (1) a modification of a customer contract that decreased project scope and resulted in a $5,616 decrease in the estimate of future costs to complete their program; and (2) a contract termination and related establishment of a new contract for a customer, which resulted in recognition of $1,902 of revenue previously recorded as a contract liability. During the year ended December 31, 2023, the Company modified a contract that terminated a portion of the contract and resulted in recognition of $3,601 of revenue previously recorded as a contract liability. During the year ended January 1, 2023, the Company had a significant contract modification with a customer pursuant to which the customer’s option to purchase discounted services expired during the fourth quarter of fiscal year 2022, resulting in a recognition of $4,700 of revenue previously recorded as a contract liability.