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Magnachip Semiconductor Corporation has announced its financial results for the third quarter of 2025, delivering performance in line with guidance while executing key initiatives to improve operational efficiency and focus on its core power semiconductor business.
Consolidated revenue from continuing operations, which includes the Power Analog Solutions (PAS) and Power IC (PIC) businesses, was $45.9 million, falling near the mid-point of the company’s guidance range of $44.0 to $48.0 million. Gross profit margin from continuing operations was 18.6 percent, also within guidance, though at the low end of the 18.5 to 20.5 percent range.
Product revenue from the Communications segment showed strong momentum, growing 34 percent sequentially and 95 percent year-over-year.
Recent operational and strategic highlights include:
- Execution of several cost-reduction initiatives, including a headcount reduction program, which are expected to generate approximately $2.5 million in annualized savings
- A revised investment plan for the Gumi fab upgrade, reducing capital expenditures by over 50 percent compared to the previously forecasted $65 to $70 million over the next two years
- Introduction of 30 new-generation PAS products in the first nine months of 2025, with plans to launch at least 20 more in the fourth quarter
- Signing of a strategic agreement with Hyundai Mobis to expand Magnachip’s industrial business through co-developed IGBT technology
Camillo Martino, Chief Executive Officer of Magnachip, stated:
“Our top priority is to stabilize our financial position and establish a solid foundation for business recovery. At the same time, we have restructured our go-to-market organization and are revitalizing our product portfolio to enhance our competitiveness, particularly in China. In the first three quarters of 2025, we launched 30 new-generation products, compared to only two during the same period in 2024. We currently plan to launch at least another 20 by year-end, bringing our total for 2025 to at least 50, compared to just four in all of 2024.”He added, “We recognize that we are entering a challenging period ahead as we right-size into a pure-play power products company. However, we believe that we are moving in the right direction and are committed to exploring all strategic options to position Magnachip for success.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation has announced a strategic agreement with Hyundai Mobis Company Limited (Mobis) focused on the deployment and commercialization of high-performance Insulated Gate Bipolar Transistor (IGBT) technology. This collaboration supports Magnachip’s broader plan to expand its power semiconductor portfolio, with particular emphasis on high-growth automotive and industrial applications.
IGBTs are essential power devices used in high-voltage, high-current systems such as electric vehicle (EV) traction inverters. According to Omdia, the global IGBT market exceeded $11 billion in 2024 and is forecast to grow from $12.3 billion in 2025 to $16.9 billion by 2028, driven largely by demand from hybrid and battery electric vehicle platforms.
In the context of this accelerating market, Magnachip and Mobis have worked together since 2015 to co-develop IGBT solutions tailored for EV traction inverters. Under the collaboration, Mobis led structural design, while Magnachip contributed semiconductor process expertise. This long-term partnership has recently resulted in the development of new IGBT products that have successfully passed system-level evaluations and meet the stringent reliability and efficiency requirements of EV systems. Mobis plans to begin mass production of traction inverters using these jointly-developed IGBTs in 2026.
Magnachip also plans to leverage the co-developed IGBT design platform to drive its own product roadmap. The company expects to launch a new line of industrial-grade IGBTs in the first half of 2026 as part of its broader strategy to strengthen its position in the global power semiconductor market. The targeted end markets include industrial automation, AI infrastructure, and renewable energy systems.
“This strategic partnership marks an important step in advancing our IGBT capabilities,” said Camillo Martino, Chief Executive Officer of Magnachip. “The development of our new seventh-generation IGBT product family significantly enhances our portfolio and positions us to compete more effectively in high-performance, premium markets. Magnachip is actively targeting high-value opportunities in industrial, AI, and renewable energy applications, which we expect to represent a larger share of our product mix in the coming years.”
The company emphasized that expanding into the IGBT segment aligns with its transformation into a focused power semiconductor business and supports its long-term objective of capturing value in advanced, energy-efficient systems worldwide.
Original – Magnachip Semiconductor
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Magnachip Semiconductor announced two 650V Super Junction MOSFET products in a TO-Leadless (TOLL) package engineered for high-power, high-current consumer applications, including premium TVs, gaming monitors, AI laptop adaptors, and fast chargers.
Unlike Magnachip’s existing 80V–200V eXtreme Trench MOSFETs in 3-pin TOLL, the new 650V SJ MOSFETs adopt a 4-pin Kelvin configuration. By separating the gate-source return path, the design reduces parasitic inductance, helping to curb gate ringing, improve switching stability, and raise overall power efficiency—especially at higher dv/dt and di/dt.
Against conventional D2PAK packaging, the 4-pin TOLL format delivers more than a 100% increase in current capability, a 24% reduction in board footprint, and a 48% reduction in height. The result is a compact, thermally efficient package well suited to smaller PCBs and high-power-density products that demand strong heat dissipation.
The new devices are aimed at meeting the dual requirements of space savings and performance in slim form-factor systems. The company plans to broaden its 600V TOLL lineup to support next-generation platforms in AI datacenters and other high-power applications.
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced that YJ Kim has agreed to step down as CEO and as a member of the Board of Directors, effective immediately. Camillo Martino, Chairman of the Board of Directors, has also been appointed Interim Chief Executive Officer, effective immediately.
Magnachip’s Interim CEO and Chairman Camillo Martino said, “YJ Kim became CEO during a turbulent period in the Company’s history, and has led the firm for the past decade. However, Magnachip now faces several strategic, operational and financial challenges as it transitions to become a pure play power semiconductor company, and this requires new leadership. On behalf of the Board of Directors, I thank YJ for his service and wish him well in his future endeavors.”
Mr. Martino commented, “I am fully committed as Interim CEO and will spend most of my time in South Korea to accelerate our transition to a pure-play power company, while also focusing intensely on achieving sustainable profitability and maximizing shareholder value. Among the first actions being taken in our plan is cutting capital expenditures by more than 50% over the next two-plus years as we prioritize capital allocation. As part of our capital allocation plans, it is important that we invest in our Gumi fab to support the growth of our new-generation power products that are critical to our financial recovery. New-generation products are expected to increase our market competitiveness and result in higher average selling prices and gross profit margins. Capital expenditures, which recently had been forecast to range between $65-70 million through 2027, now are forecast to be in the range of $30-35 million, but the total net cash outlay by Magnachip currently is expected to range between $12-13 million, with the remainder covered by our bank equipment loan facility.
“In addition, we will continue to review all other available cost reduction initiatives to align our spending consistent with our goal to achieve Adjusted EBITDA1 breakeven as soon as possible. One of the right-sizing initiatives being undertaken is headcount reduction, primarily through shared corporate functions. We are currently targeting to achieve annual savings of $2-3 million in operating expenses, with a payback period of 1.5 years.”
In concluding comment, Mr. Martino said, “As part of Magnachip’s capital allocation process, the Board will review all strategic alternatives including, but not limited to, a potential sale of the Company. The Board and management share the frustration of shareholders regarding the performance of the Company, and we are determined to optimize capital returns to shareholders. I will work closely with our management team to execute our strategic and financial plans and our new-generation power product roadmap.”
YJ Kim said, “I wish to thank Magnachip’s employees for their dedication to the Company, and the Board of Directors for its support. It’s been an honor to lead Magnachip over the past 10 years.”
Original – Magnachip Semiconductor
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Magnachip Semiconductor Corporation announced financial results for the second quarter 2025.
Y.J. Kim, Magnachip’s CEO said, “In Q2, Magnachip delivered our fifth consecutive quarter of year-over-year revenue growth from continuing operations, driven primarily by strong performances in our communications and computing applications businesses. The quarter also benefited from some pull-in activity by customers, which contributed to the overall strength of the results. In industrial applications, we continued to see solid demand across key end markets, including e-motors, LED lighting, and 5G battery management systems.”
Mr. Kim added, “Looking to the back half of the year, we face an uncertain environment due to tariffs and pricing pressures on older-generation products, particularly in China. As a result, we currently anticipate a softer second half of the year relative to our prior expectations, and we now forecast 2025 revenue from continuing operations to be flattish as compared to our prior outlook for mid-to-high single-digit growth.”
Mr. Kim added, “While headwinds are impacting our near-term outlook, we are being proactive and decisive by taking structural actions to optimize operational efficiency and we are accelerating the development of a full array of a new generation of feature-rich power products which we expect will command higher prices and margins to drive future growth and profitability. We remain firmly committed to our 3-3-3 strategy of achieving $300 million in revenue with 30% gross margin, although the exact timing will depend largely upon various macroeconomic factors.”
Q2 Results Summary
- Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) increased 8.1% year-over-year to $47.6 million and was above the mid-point of our guidance range of $45.0 to $49.0 million.
- Consolidated gross profit margin from continuing operations of 20.4% was within our guidance range of 19.5% to 21.5%.
- Repurchased approximately 0.7 million shares for an aggregate purchase price of $2.3 million.
Q2 2025 Highlights
- Q2 was the fifth consecutive quarter of year-over-year growth from continuing operations primarily driven by Power Analog Solutions (PAS) growth in communications and computing applications, as well as strength in Power IC products.
- PAS revenue from the communication applications market increased 46.7% year-over-year, representing 20% of PAS revenue, while computing applications market revenue grew 45.1% year-over year and represented 8% of PAS revenue.
- Power IC (PIC) business increased 11.1% year-over-year in Q2 driven by strength for both TV-LED and OLED power ICs.
- Launched 28 new-generation PAS products in the first half of 2025.
- Had 71 design-wins in Q2, up 61% from the 44 wins achieved in the year ago quarter. The design-wins include both our new generation Gen 6 Super Junction products and low-voltage Gen 8 MOSFETs, as well as our prior generation medium-voltage and Super Junction products.
Original – Magnachip Semiconductor
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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
