On the 13th, domestic medium-sized system semiconductor corporation MagnaChip Semiconductor announced that it has decided to transition into a pure power semiconductor corporation.
MagnaChip is thus reviewing all strategic options related to the display business. Strategic options include sale, merger, joint venture establishment, licensing, and business suspension.
The display business is expected to be classified as a discontinued operation in the company's first-quarter performance announcement to be made in May.
To focus on the power semiconductor business, MagnaChip plans to launch more than 40 next-generation power semiconductor products this year.
They also plan to invest approximately 100 billion won ($65 million to $70 million) in facility upgrades at the Gumi plant over the next three years.
MagnaChip Semiconductor is a corporation that spun off from SK hynix when it separated the non-memory sector in October 2004, focusing on memory semiconductors.
It is listed on the New York Stock Exchange (NYSE) and has its headquarters and production facilities in South Korea, although its major shareholders are composed of U.S.-based hedge funds.
Kim Young-jun, CEO of MagnaChip, noted, "We will focus on the power semiconductor business to secure sustainable revenue and maximize shareholder value," adding, "The goal is to reach break-even by the end of the fourth quarter this year, adjusted operating profit by 2026, and free cash flow by 2027."