Key Foundry, an 8-inch pure-play foundry in Korea, announced today that it has signed a long-term supply agreement with Vishay Intertechnology Inc. (NYSE: VSH) for multiple power MOSFET products.
Power MOSFETs are the typical power discrete device, characterized by low loss, high-speed switching, and high reliability during high-voltage, high-current operation, which are commonly used in almost every electronic device.
According to a market research firm OMDIA, the power discrete market is expected to grow at a CAGR of 6% from $21.2 billion in 2022, reaching a $28.4 billion market in 2027. Vishay is one of the global leading companies in the power discrete market, and its power semiconductors are widely applied to automotive DC-DC converters, battery management systems, HVAC (Heating, Ventilating, and Air Conditioning) control, LED lighting, as well as consumer and industrial products such as TVs, refrigerators, washing machines, and VR/AR.
Key Foundry and Vishay have signed this long-term foundry service agreement for multiple power MOSFET products, with a plan to start mass production in 2024. In addition, both parties have begun discussions for other future product development.
With this agreement, Vishay secures a reliable source of foundry services for MOSFET production, while Key Foundry engages with a large customer for automotive power discrete, which will increase its share of automotive semiconductor sales in the long term.
“With this agreement we are taking another step forward in our plan to expand capacity, both internally and externally. In particular, it will help us alleviate our current MOSFET supply constraints especially for our automotive and industrial customers,” said Joel Smejkal, President and CEO of Vishay. “In evaluating foundry partners, we decided to engage with Key Foundry because of its foundry’s capabilities and proactive response, and we look forward to the synergies we can achieve through cooperation with Key Foundry.”
“We are pleased to collaborate with Vishay, a leading automotive power semiconductor company,” said Derek D. Lee, CEO of Key Foundry. “Key Foundry will continue to improve process technologies as well as strengthen capabilities in marketing, quality, and production to expand supply of automotive semiconductors and grow into a leading specialty foundry.”