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Magnachip Semiconductor Corporation announced that the Board of Directors of the Company has approved an initiative intended to enhance independent Board oversight and feedback to management in conjunction with the Company’s previously announced transition to a pure-play Power business, implementation of management’s 3-3-3 strategy, and launch of new-generation Power discrete products.
The 3-3-3 strategy aims for Magnachip to achieve $300 million in annual revenue and a 30% gross margin over a three-year horizon to align Magnachip’s product roadmap, R&D investments, and operational priorities to drive structural improvements and sustainable profitability.
The Company’s Chairman, Camillo Martino, has agreed, on behalf of the Board to spend additional time on-site at the Company’s headquarters in Korea to meet with management and report back to the full Board during the implementation phase of its 3-3-3 strategy to achieve profitable growth and to maximize shareholder value. The Board expects Mr. Martino to spend several days each month in Korea for at least the remainder of 2025 in order to more closely oversee and report regularly to the Board’s other independent directors on the Company’s progress in its important strategy milestones, as well as to provide more timely feedback to management on behalf of the Board.
Camillo Martino, Chairman of Magnachip, said, “I look forward to spending more time on the ground with our management team in Korea to assist the full Board in its oversight responsibilities during the Company’s implementation of its 3-3-3 strategy as a pure-play Power business. Spending additional time on-site with the management team will allow more streamlined and timely communication with the rest of the independent Board members as Magnachip management implements its strategy to deliver new-generation Power discrete and Power IC products while also achieving its financial targets.”
YJ Kim, Magnachip’s CEO, said, “We welcome the additional support from Camillo on behalf of the Board, and look forward to continuing to provide timely feedback to the rest of the Board as we pursue these new exciting opportunities for Magnachip.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced financial results for the first quarter 2025.
Q1 Results Summary
- Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) of $44.7 million was in line with the mid-point of guidance range of $42.0 to $47.0 million. Excluding Transitional Foundry Services, revenue from continuing operations increased 12.1% year-over-year.
- Consolidated gross profit margin from continuing operations of 20.9% was above the high-end of guidance range of 18.5% to 20.5%.
- Repurchased approximately 0.3 million shares for an aggregate purchase price of $1.1 million during the quarter and ended Q1 with cash of $132.7 million.
- Announced the shutdown of Display business, which is now classified as discontinued operations from Q1 2025.
Q1 2025 Highlights
- Q1 was the fourth consecutive quarter of year-over-year growth from continuing operations primarily driven by Power Analog Solutions (PAS) growth in Communications, as well as strength in Power IC.
- PAS revenue from the Communication market was up 64% year-over-year.
- Power IC (PIC) business increased 44.1% year-over-year in Q1 driven by strength for both TV-LED and OLED power ICs.
- Released 27 new-generation PAS products that are ready for commercial sampling.
- 50 design-wins in Q1, up 13.6% from the 44 wins achieved in the year ago quarter. The design-wins include both new generation Gen 6 Super Junction products and low-voltage Gen 8 MOSFETs, as well as prior generation medium-voltage and Super Junction products.
YJ Kim, Magnachip’s CEO, said, “We delivered our fourth consecutive quarter of year-over-year growth from continuing operations, fueled by strong design-wins and momentum in Power Analog Solutions (PAS) and Power IC (PIC). In Q1 alone, we released 27 new-generation PAS products that are fully qualified and ready for commercial sampling, with design-wins spanning the Industrial, Automotive, Consumer, and Communication markets. We currently plan to launch a total of more than 40 new-generation PAS products in 2025 and approximately 55 more in 2026. These innovations not only open new revenue opportunities but are also expected to drive higher gross margins over time. While we remain mindful of geopolitical and macroeconomic uncertainties, we currently forecast sequential and year-over-year growth in revenue for continuing operations of PAS and PIC businesses in Q2.”
YJ Kim added, “Through our 3-3-3 strategy—targeting $300 million in annual revenue, a 30% gross margin, and a three-year execution horizon—we are aligning our product roadmap, R&D investments, and operational priorities to drive structural improvements and sustainable profitability.”
Shinyoung Park, Magnachip’s CFO, said, “In Q1, Magnachip achieved 12.1% year-over-year revenue growth from continuing operations and increased gross margin to 20.9%, up from 17.6% a year ago on an equivalent basis and exceeding the high-end of guidance. We expect to realize significant cost savings from the shutdown of our Display business, resulting in a 30% to 35% reduction in annualized operating expenses. Our balance sheet remains strong, and we are focused on prudent capital allocation as we transition to a more efficient, growth-oriented business model. This structural shift is creating a foundation for sustainable profitability and positions us to create long-term value for shareholders.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced financial results for the fourth quarter and full-year 2024.
Q4 Results Summary
- Consolidated revenue of $63 million was above the mid-point of our guidance range of $59.0 to $64.0 million.
- Standard Product business revenue was down 5.1% sequentially due primarily to seasonality.
- Consolidated gross profit margin of 25.2% was above the high-end our guidance range of 21.5% to 23.5%.
- Standard Product business gross profit margin was 26.6%, up 2.2 percentage points sequentially.
- Repurchased approximately 0.7 million shares for aggregate purchase price of $2.9 million during the quarter and ended Q4 with cash of $138.6 million.
2024 Highlights
- Excluding Transitional Foundry Services, Standard Products business revenue increased 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024.
- PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets.
- Power IC revenue increased more than 50% year-over-year.
YJ Kim, Magnachip’s CEO, said, “Our Q4 revenue of $63 million was up 24% year-over-year, and gross profit margin of 25.2% was up 2.5 percentage points as compared to a year ago. For the year, Standard Products business revenue increased 13% year-over-year, in line with our guidance for double-digit growth that we provided at the beginning of 2024.”
YJ Kim added, “Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May.”
YJ Kim commented, “By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced the launch of two new 6th-generation (Gen6) 650V Insulated Gate Bipolar Transistors (IGBTs), specifically designed for solar inverters.
The newly introduced Gen6 IGBTs, incorporating polyimide insulation layers, demonstrate outstanding performance by passing high-voltage, high-humidity and high-temperature reverse bias (HV-H3TRB) tests. These products offer dependable reliability in industrial equipment operating under extreme conditions, including elevated temperatures and humidity.
Additionally, integrated fast recovery anti-parallel diodes ensure swift removal of residual current, reducing switching losses in applications while supporting an operating temperature range of up to 175°C.
Of the two new products, the MBQ40T65S6FHTH features exceptional conduction loss reduction. Compared to the previous generation, this IGBT decreases conduction loss by approximately 25% and boosts system efficiency by about 15% in 15kW solar inverters.
The MBQ40T65S6FSTH is engineered to significantly reduce switching loss. It cuts switching loss by 15% and conduction loss by approximately 8% compared to its predecessor, enhancing system efficiency by about 11% in 3kW solar inverters.
With these performance upgrades, the new IGBTs are suitable for applications that demand high reliability and efficiency, such as solar inverters, industrial motor drives, power supply units and uninterruptible power supplies.
According to market research firm Omdia, the discrete IGBT market in the renewable energy sector is expected to grow at a compound annual growth rate of 19% from 2025 to 2028.
“In the second half of this year, we plan to introduce a broader range of Gen6 650V IGBT products with current ratings from 5A to 75A, as part of our strategy to significantly expand our pipeline of new-generation Power products,” said YJ Kim, CEO of Magnachip. “We have a proven track record in Power with nearly 1,000 chip designs and the manufacture and shipment of more than 23 billion units since we entered the Power business in 2007. Moving forward, we will continue to strengthen our IGBT product family to drive innovation in renewable energy, automotive, industrial and AI applications.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced a significant expansion of its product lineup with the launch of 25 new 6th-generation (Gen6) SJ MOSFETs (Super Junction Metal-Oxide-Semiconductor Field-Effect Transistors).
The switching speeds of the newly developed Gen6 SJ MOSFETs have been improved by approximately 23%, reducing the RSP of applications by about 40% compared to the previous generation, thereby enhancing the Figure of Merit by 40%.
Additionally, a Zener diode is embedded between the gate and source to enhance reliability and protect the SJ MOSFETs from ESD-induced damage. The chip sizes of the new products are also approximately 30% smaller than their predecessor product.
The new product lineup consists of 600V, 650V, and 700V voltage ratings and is available in 7 package types, including TO220, TO220FT, SOT223, PDFN88, and D2PAK, with high-demand options, such as DPAK and TO220F.
As a result, these SJ MOSFETs are well-suited for various applications requiring high power efficiency, including AI TVs, smart refrigerators, AI laptop adapters and power supplies. According to market research firm Omdia, the global smart home device market is projected to grow by 20% annually from 2025 to 2028.
“With the successful launch of 25 new Gen6 SJ MOSFETs integrating Magnachip’s latest technology, we have further strengthened our product lineup to meet our customers’ evolving technical requirements,” said YJ Kim, CEO of Magnachip. “By delivering optimal power solutions for the AI, industrial applications and smart home appliances, we aim to contribute to the growth and success of our customers in these sectors, and further advance our technology and market leadership as we transition to a pure-play Power company.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced financial results for the third quarter 2024.
YJ Kim, Magnachip’s CEO, commented, “Our Q3 revenue was at the high-end of guidance driven by broad-based growth in our Standard Product businesses, which is comprised of our MSS and PAS businesses. Standard Product revenue increased 25.9% sequentially and 24% year-over-year. Our discrete Power business benefited from leaner inventory in distribution channels as well as new product designs wins resulting in better-than-seasonal growth. In MSS, the strong sequential growth was due to increased demand for products targeted for China smartphone OEMs, automotive displays, and OLED IT.”
YJ Kim added, “Looking ahead, we expect our Standard Product business revenue in Q4 will modestly decline sequentially, which is better than typical seasonality experienced in past years. We reiterate our full-year guidance for double-digit growth in both MSS and PAS businesses in 2024.”
Financial Highlights
- Q3 consolidated revenue was $66.5 million, at the high-end of guidance range of $61.5-66.5 million.
- Q3 standard product business revenue was up 25.9% sequentially.
- Q3 consolidated gross profit margin of 23.3% was in-line with the mid-point of guidance range of 22.5-24.5%.
- Q3 standard product business gross profit margin was 24.4%, up 1.3 percentage points sequentially.
- Ended Q3 with cash of $121.1 million; and an additional non-redeemable short-term financial investment of $30 million.
- Repurchased approximately 0.5 million shares for aggregate purchase price of $2.5 million during the quarter.
Operational Highlights
- Broad-based sequential revenue growth in our PAS business was driven by leaner distribution channels and better-than-typical seasonality. Relative strength was more evident in industrial, computing, and consumer applications. Automotive continues to show strength with additional design wins in Japan and China.
- Started initial DDIC production and shipments for a premium smartphone model from a leading China OEM.
- Received a purchase order from a second leading China smartphone OEM and commenced shipments in October 2024.
- Began sampling our new OLED driver designed with next-generation IP, including sub-pixel rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation.
- Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED IT in tablets and notebooks.
Original – Magnachip Semiconductor
- Q3 consolidated revenue was $66.5 million, at the high-end of guidance range of $61.5-66.5 million.
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Magnachip Semiconductor Corporation announced financial results for the second quarter 2024.
YJ Kim, Magnachip’s CEO, commented, “Our Q2 revenue was above the mid-point of guidance and gross margin was better than expected. Revenue in our Standard Products Business, which is comprised of our MSS and PAS businesses, increased sequentially by double digits in Q2. We benefited from a recovery in our Power business, increased demand for OLED drivers for China smartphones and European autos, and an upturn in Power IC demand for OLED IT panels and LED TVs.”
YJ Kim added, “Looking ahead, we currently expect Standard Product Business revenue will increase sequentially once again in Q3, driven by leaner distribution channels in Power, as well as seasonality, and an increase in OLED and Power IC businesses.”
Financial Highlights
- Q2 consolidated revenue was $53.2 million, above the mid-point of guidance range of $49-54 million.
- Q2 standard product business revenue was up 11.6% sequentially.
- Q2 consolidated gross profit margin was 21.8%, above the upper end of guidance range of 17-19%.
- Q2 standard product business gross profit margin was 23.1%, up nearly two percentage points sequentially.
- Ended Q2 with cash of $132.5 million; and also have an additional short-term financial investment of $30 million.
- Repurchased approximately 0.5 million shares for aggregate purchase price of $2.3 million during the quarter.
Operational Highlights
- Held formal opening ceremony in China for newly formed subsidiary, Magnachip Technology Company, Ltd. (MTC).
- Secured a purchase commitment for OLED driver targeted for a premium smartphone OEM; mass production and revenue currently expected to begin by year-end.
- Delivered samples of our next-generation OLED driver to a panel supplier for a leading Chinese smartphone OEM’s winter 2024 model, now in the final design validation phase.
- Taped out a new OLED driver designed with next-generation IP including sub-pixel rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation.
- Sampled our first OLED smartwatch DDIC in Q2 following a Q1 tape-out, demonstrating our expansion into new, adjacent markets.
- Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED IT monitors.
- Sequential revenue growth in PAS segment was driven by industrial, communication and consumer applications. Automotive rebounded with new design wins in Japan and China.
- Launched new 75A/1200V IGBT for a design opportunity in solar applications; expected to begin mass production in the second half of the year.
Original – Magnachip Semiconductor
- Q2 consolidated revenue was $53.2 million, above the mid-point of guidance range of $49-54 million.
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Magnachip Semiconductor Corporation announced financial results for the first quarter 2024.
YJ Kim, Magnachip’s Chief Executive Officer, commented, “In Q1 we started the initial revenue ramp for OLED DDICs for the after-service market, and we were awarded two new designs targeted for a leading China smartphone OEM and also for a leading European EV maker. Our Power Analog Solutions (PAS) business revenue grew 12% sequentially driven by smartphones, e-motors, consumer appliances and server power applications, and we now are launching a slate of next-gen power products to help sustain our momentum. We also are encouraged that the power channel inventory showed signs of improvement in the first quarter.”
YJ continued, “Looking forward, we expect sequential revenue growth in Mixed-Signal Solutions (MSS) and PAS to continue in Q2 and we reiterate our prior full-year guidance for double digit growth in both MSS and PAS businesses.”
Financial Highlights
- Q1 consolidated revenue was $49.1 million, within our guidance range of $46-51 million.
- Q1 standard product business revenue was up 10.6% sequentially.
- Q1 consolidated gross profit margin was 18.3%, within our guidance range of 17-20%.
- Q1 standard product business gross profit margin was down 170 basis points sequentially, mostly due to lower Gumi fab utilization driven by the wind-down of Transitional Foundry Services.
- Ended Q1 with $29.7 million in long-term borrowing and $171.6 million in cash.
- Repurchased approximately $4.1 million or 0.6 million shares during the quarter.
Operational Highlights
- Secured a new high-end smartphone OLED DDIC design for a top tier China smartphone OEM.
- Secured a new EV automotive OLED DDIC design win for a leading European automaker.
- Began operations of our new China entity called Magnachip Technology Company (MTC). Our China headquarters is now up and running.
- Started initial ramp in Q1 for our first-generation OLED DDIC chip for China for the after-service market.
- Captured our first medium voltage MOSFET automotive design-win for an electric cooling fan with a China-based SUV supplier, as well as an additional automotive power steering related win in Korea.
- Began to see initial signs of inventory reductions in the distribution channel for our Power Analog Solutions products.
Original – Magnachip Semiconductor
- Q1 consolidated revenue was $49.1 million, within our guidance range of $46-51 million.
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Magnachip Semiconductor Corporation announced the release of its new 40V MXT MV MOSFET. With this latest addition, the Company now offers 13 MOSFET and IGBT products for a wide range of automotive applications.
As the automotive industry adopts advanced technologies such as autonomous driving and enhanced infotainment systems, the demand for high-efficiency power solutions increases. According to Omdia, a global market research firm, the automotive power discrete market is projected to grow 14% annually from 2024 to 2027.
Magnachip entered the automotive sector in April 2022 with its first 40V MOSFET and has since broadened its product offerings by releasing 30V, -40V (P-channel MOSFET), 60V, and 250V MOSFETs for vehicles. In September 2023, the Company introduced 650V and 1200V IGBTs for positive temperature coefficient heaters and e-compressors for automotive. In the last two years, Magnachip’s power products have been integrated into vehicles of major automotive manufacturers in the United States, Korea, Japan and China.
Leveraging its technological capabilities, Magnachip now unveils this 40V MXT MV MOSFET (AMDD040N055RH) in the Decawatt Package (DPAK). The new MOSFET offers exceptional versatility for various automotive applications, such as motor control systems or power seat modules and electric stability control systems for reverse battery protection.
“Magnachip is committed to supplying premium products that meet the evolving demands of the automotive sector,” said YJ Kim, CEO of Magnachip. “Our technical innovation, coupled with a steady supply and a comprehensive range of product offerings, will strengthen our foothold in the automotive industry and broaden our global market presence.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced financial results for the fourth quarter and full-year 2023.
YJ Kim, Magnachip’s Chief Executive Officer commented, “As we reflect on the past year and look ahead, we’re shaping our future with the transformation of our business. First, we have shifted our Display business to be laser-focused on the burgeoning OLED market in China and our efforts there are already showing promising results. We now have two design-wins and a dedicated team on the ground to help build on this momentum. Additionally, we are working to optimize our Gumi Fab to transition from lower-margin Transitional Foundry Services to higher-margin Power products. Finally, we’ve restructured our company to streamline operations, enhance shareholder value and increase transparency for our investors with the completion of our legal separation of historical Display and Power businesses into MSS and PAS.”
YJ continued, “Looking ahead, for full year 2024, we currently expect double-digit revenue growth in both the newly organized MSS and PAS businesses. We currently expect total consolidated company revenue for full year 2024 to remain relatively flat to slightly up due to the phase-out of Transitional Foundry Services. We also anticipate PAS gross margin to be challenged during the transition period while we convert the Transitional Foundry Services capacity to Power capacity, but we are committed to navigating this period with a clear focus on long-term value creation for shareholders.”
Financial Highlights
- Q4 revenue of $50.8 million was near the low-end of our guidance range.
- Q4 gross profit margin was 22.7%, near the low-end of our guidance range.
- Ended Q4 with no debt and cash of $158.1 million.
- Repurchased approximately $8.2 million of stock during the quarter.
- Full-year revenue of $230.1 million decreased 31.9% YoY.
- Full-year gross profit margin was 22.4%, down 760 bps YoY.
Operational Highlights
- Secured 1st design-win and began initial shipment in Q4 for first generation OLED DDIC for after-service market.
- Secured 2nd design-win following quarter close with leading Chinese smartphone OEM for spring launch.
- Entered into strategic commercial partnership with Chinese watch solution provider to collaborate on OLED smartwatch display market.
- Display and Power business separation and entity restructuring completed effective with the start of 2024; New businesses MSS (Mixed-Signal Solutions) and PAS (Power-Analog Solutions)
Original – Magnachip Semiconductor
