SK keyfoundry and Elmos Secure 11-Year Deal for 130nm Automotive Chips
The long-term agreement ensures critical legacy node capacity for Elmos through 2037 amid a global tightening of 200mm wafer supply.
SK keyfoundry and Elmos Semiconductor have signed an 11-year foundry agreement to secure the production of 130-nanometer automotive semiconductors. The deal extends their strategic partnership through 2037, ensuring a stable supply of critical legacy node capacity for the automotive chip designer.
Under the terms of the agreement, SK keyfoundry will provide 130nm foundry services to Elmos. As part of the technical cooperation, SK keyfoundry is providing deep trench isolation (DTI) capability, which allows for high-voltage, highly integrated designs with low substrate current. This partnership builds upon a long history between the two firms; Elmos previously utilized SK keyfoundry's 350-nanometer process technology for 18 years.
The Legacy Node Crunch
The agreement comes at a pivotal moment for the semiconductor industry. While cutting-edge chips move toward 3nm and below, the automotive sector relies heavily on "legacy nodes"—older, proven processes like 130nm that offer the reliability and cost-efficiency required for vehicle systems.
Currently, the global supply of 200mm (8-inch) wafers is tightening. Industry giants such as TSMC and Samsung have been shifting their production focus and capacity toward 300mm wafers to maximize efficiency for advanced logic and memory. This shift has left a gap in the market, making long-term capacity guarantees essential for automotive designers who cannot simply migrate their existing designs to newer, larger wafer formats without significant cost and redesign risks.
Strategic Implications
For Elmos, the deal mitigates the risk of production bottlenecks in an era of shrinking 200mm availability. By locking in capacity for over a decade, the company protects its roadmap against market volatility. For SK keyfoundry, a Korean pure-play foundry specializing in power and automotive chips, the contract provides a guaranteed revenue stream and reinforces its position as a primary partner for specialized automotive silicon.
"Elmos is an outstanding company in the automotive semiconductor market," an SK keyfoundry official stated, noting that the agreement is meaningful for both revenue and technological growth. Lee Dong-jae, CEO of SK keyfoundry, added that the company intends to accelerate its automotive semiconductor supply, starting with Elmos.
Future Outlook
Moving forward, the partnership will focus on higher-value integrated power management solutions. Arne Schneider, CEO of Elmos, described SK keyfoundry as a "trusted partner for many years" that will support the company's continued growth. Industry observers will be watching to see if other automotive chip designers seek similar long-term legacy agreements to hedge against the industry's broader migration toward 300mm production.