San Mateo drone maker Skydio is going big on home turf, committing $3.5 billion over the next five years to scale up U.S. production and build a far larger factory. The company says the plan will direct more than $1 billion to domestic suppliers and help create more than 2,000 Skydio jobs, plus thousands more across its supply chain. The move is being framed as one of the largest U.S. manufacturing expansions yet by a Bay Area-born drone company.
In a press release via PR Newswire, Skydio described the program, dubbed SkyForge, as a push to expand domestic manufacturing, accelerate research and development, and "ensure the future of flight is built in America." CEO Adam Bry said, "Skydio has proven that American companies can compete and win in the civilian drone market against products from our adversaries." The company added that it has outgrown four U.S. production facilities in just eight years.
Supersized Factory, Big Job Gains For The Bay Area
The new U.S. manufacturing facility is expected to be roughly five times the size of Skydio's current Bay Area footprint to meet rising demand, according to Manufacturing Dive. Skydio projects more than 2,000 new company roles and over 3,000 additional jobs across its supplier ecosystem. Local industrial markets in Hayward and nearby cities could see notable leasing demand if Skydio follows through on the plan.
Supply Chains And Geopolitics
The expansion follows supply chain shocks that Skydio has publicly flagged. The company was reportedly blacklisted by Beijing last October, cutting off access to Chinese-made batteries and underscoring how dependent drone supply chains remain on overseas parts, as reported by the Los Angeles Times. Skydio also notes it serves public safety agencies and U.S. military customers, making secure domestic supply lines a strategic priority, according to the company. That dual-use demand helps explain why Skydio is pushing to onshore more component production.
Funding To Speed Production
The announcement follows a $110 million Series F round that the company said raised its valuation to about $4.4 billion, according to Skydio's blog. Company leaders said the fresh capital, together with SkyForge investments, will help scale production to meet demand from public safety, defense, and utilities customers while reducing reliance on foreign suppliers. That mix of private funding and supplier investment is central to Skydio's plan to build a domestic drone supply chain.
What To Watch
Skydio has not named a firm timeline or the exact site for the new factory, though it said most of the new jobs will be California-based. The state has previously negotiated incentives tied to the company's expansion. California GO Biz documents show a $10 million California Competes tax credit framework tied to prior Hayward and San Mateo investments, which may shape any new incentives for this buildout. Commercial real estate outlets have already begun tracking the potential demand impact; ConnectCRE reported on the new investment and the likely local implications.
If Skydio follows through, the plan would be a rare win for Bay Area manufacturing, with more factory floor, more suppliers, and more jobs in the region. It will also raise questions about who lands construction and supply contracts and how quickly production can ramp. Company spokespeople said they will share more details on sites, hiring, and supplier partners as plans firm up.
