Magnachip Semiconductor Corp N Stock Price, News & Analysis

Magnachip Semiconductor (NYSE:MX) has announced plans to shut down its Display business by the end of Q2 2025, following unsuccessful attempts to find strategic alternatives. The company will transform into a pure-play Power business, focusing on Power discrete and Power IC operations.

The shutdown includes liquidating Magnachip Mixed-Signal subsidiary, while retaining the Power IC business which will operate alongside Power discrete operations in Magnachip Korea. The company expects a 30-35% reduction in annualized operating expenditures compared to 2024.

As part of their '3-3-3 strategy', Magnachip aims to:

• Achieve quarterly Adjusted EBITDA break-even from continuing operations by end of 2025
• Reach positive adjusted operating income by 2026
• Attain positive adjusted free cash flow by 2027
• Target $300 million annual revenue with 30% gross profit margin in 3 years

Magnachip Semiconductor (NYSE: MX) has launched 25 new 6th-generation (Gen6) SJ MOSFETs, significantly expanding its power product portfolio. The new Gen6 devices showcase substantial improvements over their predecessors, including:

• 23% faster switching speeds
• 40% reduction in specific on-resistance (RSP)
• 40% enhancement in Figure of Merit
• 30% smaller chip sizes
• Enhanced ESD protection through embedded Zener diodes

The new lineup features voltage ratings of 600V, 650V, and 700V, available in 7 package types including TO220, TO220FT, SOT223, PDFN88, and D2PAK. These components are specifically designed for high-power efficiency applications such as AI TVs, smart refrigerators, and AI laptop adapters. The launch aligns with projected 20% annual growth in the smart home device market from 2025 to 2028, according to Omdia.

Magnachip Semiconductor (NYSE: MX) has launched two new 6th-generation (Gen6) 650V Insulated Gate Bipolar Transistors (IGBTs) designed for solar inverters. The new IGBTs feature polyimide insulation layers and have passed high-voltage, high-humidity, and high-temperature reverse bias tests.

The MBQ40T65S6FHTH model reduces conduction loss by 25% and improves system efficiency by 15% in 15kW solar inverters compared to previous generation. The MBQ40T65S6FSTH model decreases switching loss by 15% and conduction loss by 8%, enhancing system efficiency by 11% in 3kW solar inverters.

These IGBTs support operating temperatures up to 175°C and include integrated fast recovery anti-parallel diodes. Magnachip plans to expand its Gen6 650V IGBT product range with current ratings from 5A to 75A in the second half of the year. The discrete IGBT market in renewable energy is projected to grow at 19% CAGR from 2025 to 2028, according to Omdia.

Magnachip Semiconductor (NYSE: MX) has announced its strategic transformation into a pure-play Power company, aiming to drive revenue growth and maximize shareholder value. The company will explore strategic options for its Display business, including sale, merger, joint venture, licensing, or wind-down, with completion expected by Q2 2025.

The company's Power business, which generated $185 million in revenue in 2024 (up 13% from 2023), serves diverse markets with longer product cycles. Magnachip plans to launch over 40 new-generation power products in 2025, including Gen 5 and Gen 6 IGBT, Gen 6 SuperJunction MOSFETs, and Gen 8 MOSFETs.

The company aims to achieve quarterly Adjusted EBITDA break-even by Q4 2025, positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. Their '3-3-3 Strategy' targets $300 million annual revenue run-rate with a 30% gross margin in three years. Magnachip will invest $65-70 million over three years to optimize its Gumi manufacturing facility, partially funded by a $26.5 million Equipment Financial Credit Agreement.

Magnachip (NYSE: MX) reported Q4 2024 results with consolidated revenue of $63 million, up 24% year-over-year and above guidance range of $59-64 million. Q4 gross profit margin reached 25.2%, exceeding guidance of 21.5-23.5%.

The company announced its strategic transition to become a pure-play Power company, exploring options for its Display business. Standard Products revenue grew 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Notable growth included Power IC revenue increasing over 50% year-over-year.

For Q1 2025, Magnachip expects continuing operations revenue of $42-47 million with gross margin of 18.5-20.5%. The company outlined its '3-3-3 strategy' targeting $300 million annual revenue run-rate with 30% gross margin in 3 years, expecting to achieve quarterly Adjusted EBITDA breakeven by Q4 2025.

Magnachip Semiconductor (NYSE: MX) has announced its participation in the 37th Annual ROTH Conference, scheduled to take place at The Laguna Cliffs Marriott in Dana Point on March 17th and 18th.

The company's leadership team, including CEO YJ Kim and CFO Shinyoung Park, will be available for one-on-one meetings with institutional investors during the event. Interested investors can arrange meetings through ROTH sales representatives.

Magnachip Semiconductor (NYSE: MX) has scheduled its fourth quarter 2024 financial results announcement for March 12, 2025, before market opens. The company will host two key events on the same day:

1. A conference call at 5:30 a.m. PT / 8:30 a.m. ET to discuss financial results

2. An in-person sell-side analyst briefing in New York City at 10:00 a.m. ET, led by CEO YJ Kim and CFO Shinyoung Park

Both events will be webcast live and require advance online registration. Materials from both presentations will be accessible through the company's website investor section.

Magnachip Semiconductor (NYSE: MX) reported Q3 2024 consolidated revenue of $66.5 million, reaching the high end of guidance. Standard product business revenue increased 25.9% sequentially and 24% year-over-year. Q3 gross profit margin was 23.3%. The company ended Q3 with $121.1 million in cash and $30 million in non-redeemable short-term investments. For Q4 2024, Magnachip expects consolidated revenue between $59-64 million. The company maintains its full-year guidance for double-digit growth in both MSS and PAS businesses, with consolidated revenue projected to be flattish and gross profit margin between 21-22%.

Magnachip Semiconductor (NYSE: MX) announced the expansion of production for its 7th generation MXT LV MOSFETs, featuring Super Short Channel FET technology. Production grew approximately 120% in the first three quarters of 2024 compared to the previous year. The company's MOSFETs have been integrated into premium and midrange smartphone models from a major global manufacturer. The technology offers low RSS(on) and uses a 100μm-thin wafer-level chip scale package, making it ideal for mobile devices like smartphones, smartwatches, and wireless earphones.