Pentagon’s push to limit IonQ-SkyWater merger fails as FTC approves deal

The FTC authorized IonQ’s $2 billion acquisition of SkyWater despite objections from Pentagon undersecretary Emil Michael, who had sought restrictions to protect government quantum investments.

The Federal Trade Commission gave final approval to IonQ’s $2 billion takeover of U.S. foundry SkyWater, ending a clash with a senior Pentagon official. Undersecretary for research and engineering Emil Michael had privately urged FTC Chairman Andrew Ferguson to require guarantees that other quantum firms could still obtain SkyWater’s chips and that IonQ would protect rivals’ confidential information. FTC staff negotiated a settlement containing those protections, but Republican commissioner Mark Meador rejected the measures, arguing the merger would be pro-competitive.

With the agency reduced to two commissioners after prior dismissals, the FTC could not block the transaction, and IonQ completed the acquisition without the agreed-upon conditions. The outcome represents a setback for the Pentagon’s attempt to shield its $2 billion quantum research investments, even as the government continues to promote domestic quantum-chip production through other incentives. A Pentagon spokesperson declined comment; IonQ and SkyWater did not respond.