English – Magnachip Semiconductor

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.

SEOUL, South Korea–(BUSINESS WIRE)–Oct. 30, 2024– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today 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.”

Q3 2024 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q3 2024		Q2 2024		Q/Q change			Q3 2023		Y/Y change
Consolidated Revenues	66,460		53,171		up	25.0	%	61,245		up	8.5	%
Standard Products Business	64,020		50,835		up	25.9	%	51,619		up	24.0	%
Mixed-Signal Solutions	16,446		11,595		up	41.8	%	10,644		up	54.5	%
Power Analog Solutions	47,574		39,240		up	21.2	%	40,975		up	16.1	%
Transitional Fab 3 foundry services⁽¹⁾	2,440		2,336		up	4.5	%	9,626		down	74.7	%
Consolidated Gross Profit Margin	23.3	%	21.8	%	up	1.5	%pts	23.6	%	down	0.3	%pts
Standard Products Business	24.4	%	23.1	%	up	1.3	%pts	28.7	%	down	4.3	%pts
Mixed-Signal Solutions	38.7	%	34.6	%	up	4.1	%pts	28.8	%	up	9.9	%pts
Power Analog Solutions	19.4	%	19.7	%	down	0.3	%pts	28.6	%	down	9.2	%pts
Operating Loss	(11,003	)	(12,824	)	up	n/a		(9,235	)	down	n/a
Net Loss	(9,617	)	(12,997	)	up	n/a		(5,165	)	down	n/a
Basic Loss per Common Share	(0.26	)	(0.34	)	up	n/a		(0.13	)	down	n/a
Diluted Loss per Common Share	(0.26	)	(0.34	)	up	n/a		(0.13	)	down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q3 2024		Q2 2024		Q/Q change			Q3 2023		Y/Y change
Adjusted Operating Loss	(9,026	)	(11,608	)	up	n/a		(7,064	)	down	n/a
Adjusted EBITDA	(4,949	)	(7,569	)	up	n/a		(2,735	)	down	n/a
Adjusted Net Loss	(12,797	)	(8,134	)	down	n/a		(1,591	)	down	n/a
Adjusted Loss per Common Share—Diluted	(0.34	)	(0.21	)	down	n/a		(0.04	)	down	n/a

___________
(1)		Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and have begun to convert portions of the idle capacity to PAS products during the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses.

(2)		Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q4 and Full-year 2024 Financial Guidance

Beginning in Q1 of 2024, the Company began reporting results under its newly organized businesses: MSS (Mixed-Signal Solutions) and PAS (Power Analog Solutions). While actual results may vary, Magnachip currently expects the following:

For Q4 2024:

Consolidated revenue to be in the range of $59.0 to $64.0 million, including approximately $2.0 million of Transitional Foundry Services.
- MSS revenue to be in the range of $15 to $17 million, down 2.7% sequentially but up 87% year-over-year at the mid-point. This compares with MSS revenue of $16.4 million in Q3 2024 and MSS equivalent revenue of $8.6 million in Q4 2023.
- PAS revenue to be in the range of $42 to $45 million, down 8.6% sequentially but up 33.3% year-over-year at the mid-point. This compares with PAS revenue of $47.6 million in Q3 2024 and PAS equivalent revenue of $32.6 million in Q4 2023.
Consolidated gross profit margin to be in the range of 21.5% to 23.5%.
- MSS gross profit margin to be in the range of 37.5% to 40.5%. This compares with MSS gross profit margin of 38.7% in Q3 2024 and MSS equivalent gross profit margin of 41.3% in Q4 2023.
- PAS gross profit margin to be in the range of 17% to 19%. This compares with PAS gross profit margin of 19.4% in Q3 2024 and PAS equivalent gross profit margin of 18.1% in Q4 2023.

For the full-year 2024, we currently expect:

MSS revenue to grow double digits year-over-year as compared with MSS equivalent revenue of $44.4 million in 2023, consistent with what we communicated throughout the year.
PAS revenue to grow double digits year-over-year as compared with PAS equivalent revenue of $151.3 million in 2023, consistent with what we communicated throughout the year.
Transitional Foundry Services revenue will be wound down by the end of 2024, as expected. We expect any remaining amounts to be immaterial beyond Q4 2024.
Consolidated revenue flattish, as compared to our prior expectation of flattish-to-slightly down.
Consolidated gross profit margin between 21% to 22%, as compared to our prior expectation of 19% to 22%. This compares with the consolidated gross profit margin of 22.4% in 2023.

Q3 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, October 30, 2024, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register.vevent.com/register/BId4ac9a385dd74e4f813c5964a3ac6546

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including fourth quarter and full year 2024 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s fourth quarter and full year 2024 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Revenues:
Net sales – standard products business	$	64,020		$	50,835		$	51,619		$	160,396		$	154,508
Net sales – transitional Fab 3 foundry services		2,440			2,336			9,626			8,302			24,721
Total revenues		66,460			53,171			61,245			168,698			179,229
Cost of sales:
Cost of sales – standard products business		48,400			39,113			36,829			123,401			112,008
Cost of sales – transitional Fab 3 foundry services		2,599			2,457			9,935			9,267			27,108
Total cost of sales		50,999			41,570			46,764			132,668			139,116
Gross profit		15,461			11,601			14,481			36,030			40,113
Gross profit as a percentage of standard products business net sales		24.4%			23.1%			28.7%			23.1%			27.5%
Gross profit as a percentage of total revenues		23.3%			21.8%			23.6%			21.4%			22.4%
Operating expenses:
Selling, general and administrative expenses		12,091			11,734			12,089			35,089			36,391
Research and development expenses		14,373			12,691			11,627			38,227			36,180
Early termination and other charges		—			—			—			—			9,251
Total operating expenses		26,464			24,425			23,716			73,316			81,822
Operating loss		(11,003	)		(12,824	)		(9,235	)		(37,286	)		(41,709	)
Interest income		2,051			2,228			2,382			6,492			7,916
Interest expense		(574	)		(554	)		(189	)		(1,366	)		(645	)
Foreign currency gain (loss), net		5,066			(3,557	)		(2,583	)		(3,492	)		(4,776	)
Other income (loss), net		(31	)		108			87			121			55
Loss before income tax expense (benefit)		(4,491	)		(14,599	)		(9,538	)		(35,531	)		(39,159	)
Income tax expense (benefit)		5,126			(1,602	)		(4,373	)		2,500			(8,577	)
Net loss	$	(9,617	)	$	(12,997	)	$	(5,165	)	$	(38,031	)	$	(30,582	)
Basic loss per common share—	$	(0.26	)	$	(0.34	)	$	(0.13	)	$	(1.00	)	$	(0.73	)
Diluted loss per common share—	$	(0.26	)	$	(0.34	)	$	(0.13	)	$	(1.00	)	$	(0.73	)
Weighted average number of shares—
Basic		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255
Diluted		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) (Unaudited)

	September 30, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		$	121,095			$	158,092
Short-term financial instruments			30,000				—
Accounts receivable, net			28,693				32,641
Inventories, net			36,127				32,733
Other receivables			5,301				4,295
Prepaid expenses			11,614				7,390
Hedge collateral			1,000				1,000
Other current assets			8,208				9,283
Total current assets			242,038				245,434
Property, plant and equipment, net			92,383				100,122
Operating lease right-of-use assets			3,810				4,639
Intangible assets, net			1,353				1,537
Long-term prepaid expenses			615				5,736
Deferred income taxes			46,643				50,836
Other non-current assets			24,513				12,187
Total assets		$	411,355			$	420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	24,644			$	24,443
Other accounts payable			11,768				5,292
Accrued expenses			9,133				10,457
Accrued income taxes			32				1,496
Operating lease liabilities			1,754				1,914
Other current liabilities			3,005				3,286
Total current liabilities			50,336				46,888
Long-term borrowing			30,312				—
Accrued severance benefits, net			17,347				16,020
Non-current operating lease liabilities			2,191				2,897
Other non-current liabilities			11,596				10,088
Total liabilities			111,782				75,893
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,032,206 shares issued and 37,292,044 outstanding at September 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023			569				569
Additional paid-in capital			277,306				273,256
Retained earnings			260,853				298,884
Treasury stock, 19,740,162 shares at September 30, 2024 and 18,118,652 shares at December 31, 2023, respectively			(222,503	)			(213,454	)
Accumulated other comprehensive loss			(16,652	)			(14,657	)
Total stockholders’ equity			299,573				344,598
Total liabilities and stockholders’ equity		$	411,355			$	420,491

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended			Nine Months Ended
	September 30, 2024			September 30, 2024			September 30, 2023
Cash flows from operating activities
Net loss	$	(9,617	)	$	(38,031	)	$	(30,582	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		4,056			12,171			12,583
Provision for severance benefits		1,582			4,552			5,358
Loss (gain) on foreign currency, net		(10,708	)		6,140			14,532
Provision for inventory reserves		(591	)		(1,615	)		3,035
Stock-based compensation		1,977			4,093			5,383
Deferred income taxes		(47	)		3,111			88
Others, net		126			552			592
Changes in operating assets and liabilities
Accounts receivable, net		3,795			3,560			(6,409	)
Inventories		1,084			(2,365	)		3,635
Other receivables		(1,631	)		(1,030	)		4,993
Prepaid expenses		1,818			5,645			5,653
Other current assets		4,086			1,155			(7,944	)
Accounts payable		(1,325	)		619			6,066
Other accounts payable		(3,521	)		(10,197	)		(6,738	)
Accrued expenses		(912	)		(1,339	)		619
Accrued income taxes		(1,442	)		(1,459	)		(3,014	)
Other current liabilities		(693	)		(240	)		(741	)
Other non-current liabilities		(99	)		(345	)		(279	)
Payment of severance benefits		(527	)		(1,889	)		(6,183	)
Others, net		(316	)		(1,077	)		(841	)
Net cash used in operating activities		(12,905	)		(17,989	)		(194	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		627			627			3,335
Payment of hedge collateral		—			(612	)		(3,154	)
Purchase of property, plant and equipment		(2,609	)		(4,175	)		(2,280	)
Payment for intellectual property registration		(85	)		(263	)		(230	)
Collection of guarantee deposits		15			1,153			4,984
Payment of guarantee deposits		(180	)		(2,090	)		(7,276	)
Increase in short-term financial instruments		—			(30,000	)		—
Others, net		(37	)		(37	)		—
Net cash used in investing activities		(2,269	)		(35,397	)		(4,621	)
Cash flows from financing activities
Proceeds from long-term borrowing		—			30,059			—
Proceeds from exercise of stock options		—			—			27
Acquisition of treasury stock		(2,648	)		(9,507	)		(43,087	)
Repayment of financing related to water treatment facility arrangement		(119	)		(357	)		(371	)
Repayment of principal portion of finance lease liabilities		(35	)		(104	)		(69	)
Net cash provided by (used in) financing activities		(2,802	)		20,091			(43,500	)
Effect of exchange rates on cash and cash equivalents		6,604			(3,702	)		(10,518	)
Net decrease in cash and cash equivalents		(11,372	)		(36,997	)		(58,833	)
Cash and cash equivalents
Beginning of the period		132,467			158,092			225,477
End of the period	$	121,095		$	121,095		$	166,644

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Operating loss	$	(11,003	)	$	(12,824	)	$	(9,235	)	$	(37,286	)	$	(41,709	)
Adjustments:
Equity-based compensation expense		1,977			1,216			2,171			4,093			5,383
Early termination and other charges		—			—			—			—			9,251
Adjusted Operating Income Loss	$	(9,026	)	$	(11,608	)	$	(7,064	)	$	(33,193	)	$	(27,075	)

We present Adjusted Operating Loss as a supplemental measure of our performance. We define Adjusted Operating Loss for the periods indicated as operating loss adjusted to exclude (i) Equity-based compensation expense and (ii) Early termination and other charges.

For the nine months ended September 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET LOSS (In thousands of U.S. dollars, except share data) (Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net loss	$	(9,617	)	$	(12,997	)	$	(5,165	)	$	(38,031	)	$	(30,582	)
Adjustments:
Interest income		(2,051	)		(2,228	)		(2,382	)		(6,492	)		(7,916	)
Interest expense		574			554			189			1,366			645
Income tax expense (benefit)		5,126			(1,602	)		(4,373	)		2,500			(8,577	)
Depreciation and amortization		4,056			4,016			4,081			12,171			12,583
EBITDA		(1,912	)		(12,257	)		(7,650	)		(28,486	)		(33,847	)
Equity-based compensation expense		1,977			1,216			2,171			4,093			5,383
Foreign currency loss (gain), net		(5,066	)		3,557			2,583			3,492			4,776
Derivative valuation loss (gain), net		52			(85	)		161			(58	)		235
Early termination and other charges		—			—			—			—			9,251
Adjusted EBITDA	$	(4,949	)	$	(7,569	)	$	(2,735	)	$	(20,959	)	$	(14,202	)
Net loss	$	(9,617	)	$	(12,997	)	$	(5,165	)	$	(38,031	)	$	(30,582	)
Adjustments:
Equity-based compensation expense		1,977			1,216			2,171			4,093			5,383
Foreign currency loss (gain), net		(5,066	)		3,557			2,583			3,492			4,776
Derivative valuation loss (gain), net		52			(85	)		161			(58	)		235
Early termination and other charges		—			—			—			—			9,251
Income tax effect on non-GAAP adjustments		(143	)		175			(1,341	)		(1,311	)		(3,493	)
Adjusted Net Loss	$	(12,797	)	$	(8,134	)	$	(1,591	)	$	(31,815	)	$	(14,430	)
Adjusted Net Loss per common share—
– Basic	$	(0.34	)	$	(0.21	)	$	(0.04	)	$	(0.84	)	$	(0.35	)
– Diluted	$	(0.34	)	$	(0.21	)	$	(0.04	)	$	(0.84	)	$	(0.35	)
Weighted average number of shares – basic		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255
Weighted average number of shares – diluted		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255

We present Adjusted EBITDA and Adjusted Net Loss as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Early termination and other charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit) and depreciation and amortization.

We prepare Adjusted Net Loss by adjusting net loss to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Loss is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Loss for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Early termination and other charges and (v) Income tax effect on non-GAAP adjustments.

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Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
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Source: Magnachip Semiconductor Corporation

SEOUL, South Korea, October 28, 2024 – Magnachip Semiconductor Corporation (“Magnachip” or “Company”) (NYSE: MX) announced today the expansion of production for its 7th generation ¹⁾MXT LV MOSFETs, which are based on Magnachip’s Super Short Channel FET (SSCFET^®) technology.

As mobile devices become more advanced, the demand for compact Low Voltage (LV) MOSFETs with low ²⁾R_SS(on) continues to grow. Magnachip’s MXT LV MOSFET product family offers exceptionally low R_SS(on), enabled by the SSCFET^® technology. This technology significantly reduces the channel length between the source and the drain during on-state operation, which effectively enhances battery performance and efficiency, extends battery life and reduces overheating.

Additionally, these MXT LV MOSFETs are manufactured using a 100μm-thin wafer-level chip scale package (WLCSP) to provide enhanced design flexibility. This makes them well-suited for a wide range of mobile devices, including smartphones, smartwatches, wireless earphones and next-generation ring-shaped devices.

Thanks to its proven high-quality products and reliable supply capabilities, Magnachip’s MXT LV MOSFET (MDWC0151ERH) has been integrated into a premium smartphone model from a major global smartphone manufacturer. Furthermore, the MDWC12D025ERH is now also being used in the manufacturer’s high-volume midrange model. In the first three quarters of 2024, production of MXT LV MOSFETs grew by approximately 120% compared to the same period in the previous year.

“Magnachip has established a strong collaborative relationship with a major global smartphone manufacturer,” said YJ Kim, CEO of Magnachip. “Through continued technological development and innovation, we will strengthen our MXT LV MOSFET product family and target not only the mobile device market but also a variety of battery-powered devices, such as e-bikes, scooters, e-cigarettes and drones.”

¹⁾MXT LV MOSFET (Magnachip eXtreme Trench Low Voltage MOSFET): Magnachip’s cutting-edge product portfolio of 12~40V trench MOSFETs.

²⁾R_SS(on): On resistance, the resistance value between sources of two protected MOSFETs during operation (ON).

Related Links

Power Solutions > MXT MOSFETs
Related Articles

Magnachip Unveils Super-Short Channel MXT MOSFETs for Smartphone Battery Protection Circuit Modules

Magnachip Unveils Its First 8th-Generation MXT LV MOSFET Designed with Super-Short Channel FET II

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Expands Production of 7th Generation MXT LV MOSFETs Based on Super Short Channel FET Technology

SEOUL, South Korea–(BUSINESS WIRE)–Oct. 9, 2024– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the third quarter ended September 30, 2024, on Wednesday, October 30, 2024, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event, including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call.

Online registration: https://register.vevent.com/register/BId4ac9a385dd74e4f813c5964a3ac6546

A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the company’s website at www.magnachip.com.

About Magnachip Semiconductor Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20241009041152/en/

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

Source: Magnachip Semiconductor Corporation

– The new 40V MXT MV MOSFETs are optimized for automotive motors and low-power control systems, featuring a compact form factor and a low gate threshold voltage

SEOUL, South Korea, September 9, 2024 – Magnachip Semiconductor Corporation (“Magnachip” or “Company”) (NYSE: MX) announced the release of four new 40V ¹⁾MXT MV MOSFETs designed in Power Dual Flat No-Lead (PDFN) 33 packages for automotive applications.

As automotive technologies like autonomous driving and infotainment systems advance, the number and variety of motors installed in vehicles are increasing. Consequently, there is a growing importance for high-performance MOSFETs that offer low power consumption, compact size, and lightweight construction to efficiently drive these motors.

Magnachip’s newly launched 40V MXT MV MOSFETs come in PDFN33, reducing the area by more than 60% and the weight by approximately 75% as compared to 40V MOSFET products packaged in PDFN56. This makes them even more suitable for automotive motors and low-power control systems, where performance, fuel efficiency, and space flexibility are crucial.

Among these new products, three models—AMDV040N029LVRH, AMDV040N036LVRH, and AMDV040N042LVRH—are distinguished by their low gate threshold voltage of 1.8V. The gate threshold voltage determines the point at which the MOSFET switches from an off-state to an on-state. A lower threshold voltage reduces the energy required to operate the MOSFET, thereby decreasing the overall power consumption of the system.

The key specifications of the four new automotive 40V MXT MV MOSFETs are as follows:

“With the launch of these new products, Magnachip has further strengthened its automotive power product lineup, which is designed to satisfy the diverse demands of the automotive components industry,” said YJ Kim, CEO of Magnachip. “We will continue to expand our global presence in this evolving market through technological innovation and stable product supply.”

¹⁾MXT MV MOSFET (Magnachip eXtreme Trench Medium Voltage MOSFET): Magnachip’s cutting-edge product portfolio of 40~200V trench MOSFETs.

²⁾R_DS(ON)_：the resistance between the drain and the source of MOSFETs during on-state operation.

Related Links

Please find further details and datasheet about Magnachip’s Automotive Solutions at https://www.magnachip.com/automotive-solutions.

Related Articles

Magnachip Boosts Its Extensive Automotive Product Lineup with the Release of a New 40V MXT MV MOSFET

Magnachip Commences Full-Scale Mass Production of New 30V MXT LV MOSFET for Electric Power Steering Systems

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Expands Automotive Power Product Lineup with Four New 40V MXT MV MOSFETs

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.

SEOUL, South Korea–(BUSINESS WIRE)–Jul. 31, 2024– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today 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.”

Q2 2024 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q2 2024		Q1 2024		Q/Q change			Q2 2023		Y/Y change
Consolidated Revenues	53,171		49,067		up	8.4	%	60,979		down	12.8	%
Standard Products Business	50,835		45,541		up	11.6	%	51,375		down	1.1	%
Mixed-Signal Solutions	11,595		9,006		up	28.7	%	12,357		down	6.2	%
Power Analog Solutions	39,240		36,535		up	7.4	%	39,018		up	0.6	%
Transitional Fab 3 foundry services⁽¹⁾	2,336		3,526		down	33.7	%	9,604		down	75.7	%
Consolidated Gross Profit Margin	21.8	%	18.3	%	up	3.5	%pts	22.2	%	down	0.4	%pts
Standard Products Business	23.1	%	21.2	%	up	1.9	%pts	26.3	%	down	3.2	%pts
Mixed-Signal Solutions	34.6	%	44.6	%	down	10.0	%pts	36.4	%	down	1.8	%pts
Power Analog Solutions	19.7	%	15.4	%	up	4.3	%pts	23.1	%	down	3.4	%pts
Operating Loss	(12,824	)	(13,459	)	up	n/a		(10,656	)	down	n/a
Net Loss	(12,997	)	(15,417	)	up	n/a		(3,947	)	down	n/a
Basic Loss per Common Share	(0.34	)	(0.40	)	up	n/a		(0.09	)	down	n/a
Diluted Loss per Common Share	(0.34	)	(0.40	)	up	n/a		(0.09	)	down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q2 2024		Q1 2024		Q/Q change			Q2 2023		Y/Y change
Adjusted Operating Loss	(11,608	)	(12,559	)	up	n/a		(7,762	)	down	n/a
Adjusted EBITDA	(7,569	)	(8,441	)	up	n/a		(3,594	)	down	n/a
Adjusted Net Loss	(8,134	)	(10,884	)	up	n/a		(2,472	)	down	n/a
Adjusted Loss per Common Share—Diluted	(0.21	)	(0.28	)	up	n/a		(0.06	)	down	n/a

___________

(1)		Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and planning to convert portions of the idle capacity to PAS products beginning around the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses.

(2)		Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q3 and Full-year 2024 Financial Guidance

Beginning in Q1, the Company began reporting results under its newly organized businesses: MSS (Mixed-Signal Solutions) and PAS (Power Analog Solutions). While actual results may vary, Magnachip currently expects the following:

For Q3 2024:

Consolidated revenue to be in the range of $61.5 to $66.5 million, including approximately $1.5 million of Transitional Foundry Services.
- MSS revenue to be in the range of $14.5 to $16.5 million, up 33.7% sequentially and 46.2% year-over-year at the mid-point. This compares with MSS equivalent revenue of $11.6 million in Q2 2024 and $10.6 million in Q3 2023.
- PAS revenue to be in the range of $45.5 to $48.5 million, up 19.8% sequentially and 14.6% year-over-year at the mid-point. This compares with PAS equivalent revenue of $39.2 million in Q2 2024 and $41.0 million in Q3 2023.
Consolidated gross profit margin to be in the range of 22.5% to 24.5%.
- MSS gross profit margin to be in the range of 36.5% to 39.5%. This compares with MSS equivalent gross profit margin of 34.6% in Q2 2024 and 28.8% in Q3 2023.
- PAS gross profit margin to be in the range of 18.5% to 20.5%. This compares with PAS equivalent gross profit margin of 19.7% in Q2 2024 and 28.6% in Q3 2023.

For the full-year 2024, we currently expect:

MSS revenue to grow double digits year-over-year as compared with MSS equivalent revenue of $44.4 million in 2023, consistent with what we communicated at the beginning of the year.
PAS revenue to grow double digits year-over-year as compared with PAS equivalent revenue of $151.3 million in 2023, consistent with what we communicated at the beginning of the year.
Transitional Foundry Services revenue will decline in 2024, as expected. We expect this revenue to phase out by the end of the year.
Consolidated revenue flattish-to-slightly down, compared to prior expectation of flat-to-up-slightly year-over-year.
Consolidated gross profit margin between 19% to 22%, above our prior expectation of 17% to 20%. This compares with the consolidated gross profit margin of 22.4% in 2023.

Q2 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, July 31, 2024, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register.vevent.com/register/BId7d466aa72124a439fec483c2b65d307

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including third quarter and full year 2024 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s third quarter and full year 2024 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited)

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Revenues:
Net sales – standard products business	$	50,835		$	45,541		$	51,375		$	96,376		$	102,889
Net sales – transitional Fab 3 foundry services		2,336			3,526			9,604			5,862			15,095
Total revenues		53,171			49,067			60,979			102,238			117,984
Cost of sales:
Cost of sales – standard products business		39,113			35,888			37,867			75,001			75,179
Cost of sales – transitional Fab 3 foundry services		2,457			4,211			9,574			6,668			17,173
Total cost of sales		41,570			40,099			47,441			81,669			92,352
Gross profit		11,601			8,968			13,538			20,569			25,632
Gross profit as a percentage of standard products business net sales		23.1	%		21.2	%		26.3	%		22.2	%		26.9	%
Gross profit as a percentage of total revenues		21.8	%		18.3	%		22.2	%		20.1	%		21.7	%
Operating expenses:
Selling, general and administrative expenses		11,734			11,264			12,137			22,998			24,302
Research and development expenses		12,691			11,163			11,255			23,854			24,553
Early termination and other charges		—			—			802			—			9,251
Total operating expenses		24,425			22,427			24,194			46,852			58,106
Operating loss		(12,824	)		(13,459	)		(10,656	)		(26,283	)		(32,474	)
Interest income		2,228			2,213			2,692			4,441			5,534
Interest expense		(554	)		(238	)		(200	)		(792	)		(456	)
Foreign currency gain (loss), net		(3,557	)		(5,001	)		1,237			(8,558	)		(2,193	)
Other income (loss), net		108			44			3			152			(32	)
Loss before income tax benefit		(14,599	)		(16,441	)		(6,924	)		(31,040	)		(29,621	)
Income tax benefit		(1,602	)		(1,024	)		(2,977	)		(2,626	)		(4,204	)
Net loss	$	(12,997	)	$	(15,417	)	$	(3,947	)	$	(28,414	)	$	(25,417	)
Basic loss per common share—	$	(0.34	)		(0.40	)	$	(0.09	)	$	(0.74	)	$	(0.60	)
Diluted loss per common share—	$	(0.34	)		(0.40	)	$	(0.09	)	$	(0.74	)	$	(0.60	)
Weighted average number of shares—
Basic		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514
Diluted		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) (Unaudited)

	June 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	132,467		$	158,092
Short-term financial instruments		30,000			—
Accounts receivable, net		31,175			32,641
Inventories, net		34,783			32,733
Other receivables		3,977			4,295
Prepaid expenses		8,548			7,390
Hedge collateral		1,600			1,000
Other current assets		11,653			9,283
Total current assets		254,203			245,434
Property, plant and equipment, net		88,330			100,122
Operating lease right-of-use assets		4,181			4,639
Intangible assets, net		1,320			1,537
Long-term prepaid expenses		8,085			5,736
Deferred income taxes		44,578			50,836
Other non-current assets		11,998			12,187
Total assets	$	412,695		$	420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	25,575		$	24,443
Other accounts payable		8,383			5,292
Accrued expenses		9,199			10,457
Accrued income taxes		1,422			1,496
Operating lease liabilities		1,805			1,914
Other current liabilities		4,168			3,286
Total current liabilities		50,552			46,888
Long-term borrowing		28,794			—
Accrued severance benefits, net		15,759			16,020
Non-current operating lease liabilities		2,514			2,897
Other non-current liabilities		9,228			10,088
Total liabilities		106,847			75,893
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,015,569 shares issued and 37,799,482 outstanding at June 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023		569			569
Additional paid-in capital		275,329			273,256
Retained earnings		270,470			298,884
Treasury stock, 19,216,087 shares at June 30, 2024 and 18,118,652 shares at December 31, 2023, respectively		(219,949	)		(213,454	)
Accumulated other comprehensive loss		(20,571	)		(14,657	)
Total stockholders’ equity		305,848			344,598
Total liabilities and stockholders’ equity	$	412,695		$	420,491

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended			Six Months Ended
	June 30, 2024			June 30, 2024			June 30, 2023
Cash flows from operating activities
Net loss	$	(12,997	)	$	(28,414	)	$	(25,417	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		4,016			8,115			8,502
Provision for severance benefits		1,565			2,970			4,091
Loss on foreign currency, net		6,622			16,848			9,117
Provision for inventory reserves		(77	)		(1,024	)		1,121
Stock-based compensation		1,216			2,116			3,212
Deferred income tax assets		1.845			3,158			27
Other, net		163			426			423
Changes in operating assets and liabilities
Accounts receivable, net		(1,636	)		(235	)		(342	)
Inventories		(4,250	)		(3,449	)		4,911
Other receivables		986			601			4,407
Prepaid expenses		2,922			3,827			4,073
Other current assets		(3,262	)		(2,931	)		(3,678	)
Accounts payable		1,381			1,944			2,880
Other accounts payable		(1,420	)		(6,676	)		(6,488	)
Accrued expenses		1,618			(427	)		1,104
Accrued income taxes		(184	)		(17	)		(2,972	)
Other current liabilities		840			453			(471	)
Other non-current liabilities		378			(246	)		(214	)
Payment of severance benefits		(478	)		(1,362	)		(5,728	)
Other, net		(360	)		(761	)		(487	)
Net cash used in operating activities		(1,112	)		(5,084	)		(1,929	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		—			—			3,335
Payment of hedge collateral		(612	)		(612	)		(2,586	)
Purchase of property, plant and equipment		(898	)		(1,566	)		(1,518	)
Payment for intellectual property registration		(118	)		(178	)		(163	)
Collection of guarantee deposits		5			1,138			1,445
Payment of guarantee deposits		(36	)		(1,910	)		(6,907	)
Increase in short-term financial instruments		(30,000	)		(30,000	)		—
Other, net		(1	)		0			—
Net cash used in investing activities		(31,660	)		(33,128	)		(6,394	)
Cash flows from financing activities
Proceeds from long-term borrowings		—			30,059			—
Proceeds from exercise of stock options		—			—			27
Acquisition of treasury stock		(2,200	)		(6,859	)		(36,840	)
Repayment of financing related to water treatment facility arrangement		(117	)		(238	)		(248	)
Repayment of principal portion of finance lease liabilities		(34	)		(69	)		(46	)
Net cash provided by (used in) financing activities		(2,351	)		22,893			(37,107	)
Effect of exchange rates on cash and cash equivalents		(4,012	)		(10,306	)		(7,093	)
Net decrease in cash and cash equivalents		(39,135	)		(25,625	)		(52,523	)
Cash and cash equivalents
Beginning of the period		171,602			158,092			225,477
End of the period	$	132,467		$	132,467		$	172,954

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Operating loss	$	(12,824	)	$	(13,459	)	$	(10,656	)	$	(26,283	)	$	(32,474	)
Adjustments:
Equity-based compensation expense		1,216			900			2,092			2,116			3,212
Early termination and other charges		—			—			802			—			9,251
Adjusted Operating Income Loss	$	(11,608	)	$	(12,559	)	$	(7,762	)	$	(24,167	)	$	(20,011	)

For the six months ended June 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. For the three and six months ended June 30, 2023, we recorded $802 thousand of one-time employee incentives.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET LOSS (In thousands of U.S. dollars, except share data) (Unaudited)

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Net loss	$	(12,997	)	$	(15,417	)	$	(3,947	)	$	(28,414	)	$	(25,417	)
Adjustments:
Interest income		(2,228	)		(2,213	)		(2,692	)		(4,441	)		(5,534	)
Interest expense		554			238			200			792			456
Income tax benefit		(1,602	)		(1,024	)		(2,977	)		(2,626	)		(4,204	)
Depreciation and amortization		4,016			4,099			4,145			8,115			8,502
EBITDA		(12,257	)		(14,317	)		(5,271	)		(26,574	)		(26,197	)
Equity-based compensation expense		1,216			900			2,092			2,116			3,212
Foreign currency loss (gain), net		3,557			5,001			(1,237	)		8,558			2,193
Derivative valuation loss (gain), net		(85	)		(25	)		20			(110	)		74
Early termination and other charges		—			—			802			—			9,251
Adjusted EBITDA	$	(7,569	)	$	(8,441	)	$	(3,594	)	$	(16,010	)	$	(11,467	)
Net loss	$	(12,997	)	$	(15,417	)	$	(3,947	)	$	(28,414	)	$	(25,417	)
Adjustments:
Equity-based compensation expense		1,216			900			2,092			2,116			3,212
Foreign currency loss (gain), net		3,557			5,001			(1,237	)		8,558			2,193
Derivative valuation loss (gain), net		(85	)		(25	)		20			(110	)		74
Early termination and other charges		—			—			802			—			9,251
Income tax effect on non-GAAP adjustments		175			(1,343	)		(202	)		(1,168	)		(2,152	)
Adjusted Net Loss	$	(8,134	)	$	(10,884	)	$	(2,472	)	$	(19,018	)	$	(12,839	)
Adjusted Net Loss per common share—
– Basic	$	(0.21	)	$	(0.28	)	$	(0.06	)	$	(0.50	)	$	(0.30	)
– Diluted	$	(0.21	)	$	(0.28	)	$	(0.06	)	$	(0.50	)	$	(0.30	)
Weighted average number of shares – basic		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514
Weighted average number of shares – diluted		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731545229/en/

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

Source: Magnachip Semiconductor Corporation

SEOUL, South Korea, July 30, 2024 – Magnachip Semiconductor Corporation (“Magnachip” or “Company”) (NYSE: MX) announced the release of its 8th-generation ¹⁾MXT LV MOSFET (Metal Oxide Semiconductor Field Effect Transistor) for smartphone battery protection circuits.

Magnachip has introduced its proprietary Super-Short Channel FET II (SSCFET® II) technology for the first time in the Company’s new 12V Dual N-channel MOSFET (MDWC12D024PERH). SSCFET® II is Magnachip’s latest design technology that significantly reduces the channel length, thereby lowering the ²⁾R_SS(on).

Compared to the previous generation product of the same size, the R_SS(on)of this product is reduced by approximately 22%. This reduction decreases power loss, shortens smartphone charging times, and lowers the internal temperature of smartphones by about 12% in fast charging mode.

With global smartphone manufacturers enhancing AI capabilities in smartphones, the importance of MOSFET products is growing. Magnachip’s new 12V MXT LV MOSFET features high power efficiency and is optimized for a wide range of battery protection applications in premium smartphones, particularly on-device AI smartphones.

According to market research firm Omdia, shipments of on-device AI smartphones are expected to grow at an average annual rate of 50% from 2024 to 2028, reaching 606 million units in 2028.

“Following the development of Super-Short Channel FET I technology and the successful product rollout early last year, Magnachip has now introduced an upgraded Super-Short Channel FET II technology,” said YJ Kim, CEO of Magnachip. “We plan to continue developing innovative high-density cell trench technology and launch advanced power solutions targeting smartphones, smartwatches and earphones throughout the second half of this year.”

¹⁾MXT LV MOSFET (Magnachip eXtreme Trench Low Voltage MOSFET): Magnachip’s cutting-edge product portfolio of 12~40V trench MOSFETs.

²⁾R_SS(on): On resistance, the resistance value between sources of two protected MOSFETs during operation (ON).

Related Links

Power Solutions > MXT MOSFETs > 12V

Related Articles

Magnachip Expands Its 7th-Generation MXT LV MOSFET Line-Up for Battery Protection Circuits of Mobile Devices

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Unveils Its First 8th-Generation MXT LV MOSFET Designed with Super-Short Channel FET II

– The Company provides optimized solutions for the solar energy market with its diverse IGBT and ¹⁾MXT MV MOSFET products

SEOUL, South Korea, July 29, 2024 – Magnachip Semiconductor Corporation (“Magnachip” or “Company”) (NYSE: MX) announced today the completion of the development of its 1200V 75A Insulated Gate Bipolar Transistor (IGBT) in a TO-247PLUS package, designed for solar inverters. The Company plans to start mass production in October this year.

Magnachip entered the solar inverter market in 2020 by introducing the 1200V 40A IGBT (MBQ40T120QFS) and began offering the 650V 75A IGBT (MBQ75T65PEH) in 2022. Now, the Company unveils its latest 1200V 75A IGBT (MBQA75T120RFS), featuring its cutting-edge design technology and processes.

This new product, packaged in a TO-247PLUS with a wide heat spreader, improves heat dissipation as compared to the TO-247 package. Additionally, it enhances power efficiency by reducing conduction loss by over 14% compared to its previous generation. This improvement ensures stable operation even in overload conditions, thereby enhancing system reliability.

Moreover, this new IGBT product provides application design flexibility, as its performance can replace that of two 40A IGBTs. Another notable feature is the incorporation of a fast recovery anti-parallel diode, which quickly removes residual current to reduce switching losses and guarantees a maximum operating junction temperature of 175°C. Designed in accordance with the standards of the Joint Electron Device Engineering Council (JEDEC), this product is suitable for a wide range of applications requiring strict power ratings and high efficiency, including solar inverters, converters, uninterruptible power supply systems, and general-purpose inverters.

According to market research firm Omdia, the discrete IGBT and silicon-based MOSFET sectors in the renewable energy market are expected to grow at a compound annual growth rate of 15% from 2024 to 2028.

“With this new product launch, Magnachip’s solar energy power product lineup has been further strengthened and now boasts high-performance IGBTs and MXT MV MOSFETs that satisfy the technical requirements of applications in the solar energy market,” said YJ Kim, CEO of Magnachip. “We will continue to supply innovative power solutions targeting renewable energy applications and capitalize on growth opportunities within the industry.”

¹⁾MXT MV MOSFET (Magnachip eXtreme Trench Medium Voltage MOSFET): Magnachip’s cutting-edge product portfolio of 40~200V trench MOSFETs.

²⁾R_DS(ON)_：the resistance between the drain and the source of MOSFETs during on-state operation.

Related Links

Power Solutions > Discrete IGBTs

Related Articles

Magnachip Unveils a New 650V IGBT for Solar Inverters

Magnachip Unveils New 8th-Generation 150V MXT MV MOSFETs

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Expands Solar Energy Power Product Lineup with the Release of 1200V IGBT in TO-247PLUS Package

SEOUL, South Korea–(BUSINESS WIRE)–Jul. 10, 2024– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the second quarter ended June 30, 2024, on Wednesday, July 31, 2024, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

Online registration: https://register.vevent.com/register/BId7d466aa72124a439fec483c2b65d307

A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the company’s website at www.magnachip.com.

About Magnachip Semiconductor Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20240710768242/en/

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

Source: Magnachip Semiconductor Corporation

SEOUL, South Korea, June 10, 2024 – Magnachip Mixed-Signal, Ltd. (“MMS” or the “Company”) announced today the release of a multi-functional Power Management Integrated Circuit (PMIC) and a multi-channel level shifter to regulate different voltages and signals within display panels in IT devices.

As a subsidiary of Magnachip Semiconductor Corporation (“Magnachip”), MMS has been developing and supplying a wide range of power ICs, including back light unit LED drivers for TVs and LED lighting drivers, for over 10 years. The quality of the Company’s products has been validated through successful cooperation with leading TV manufacturers, OLED panel manufacturers and smartphone manufacturers, enabling MMS to expand its customer base globally.

The new products introduced today feature PMIC and level-shifter technology stemming from Magnachip’s research and development activities since 2019, and they provide the benefits of enhanced efficiency, low power consumption, multi-functionality and multi-channel capability.

The multi-functional PMIC was developed as a one-chip solution that integrates: a built-in controller, switches, logic circuit, two boost regulators, two negative low-dropout regulators, three high-current regulators for voltage down and two positive op-amps. With I²C*, this PMIC can control dynamic voltage management, a built-in on/off timer, protection circuits and switching frequency transition. As a result, the new PMIC enhances efficiency and reduces power consumption in applications. Therefore, the power required for the operation of high-end display panels in IT devices will be stably converted and distributed.

The new multi-channel level shifter is specially designed to regulate turn-on/off voltages for over 24 channels and efficiently manage voltage signals. Consequently, this level shifter fully satisfies the demanding channel requirements of high-resolution display panels and even UHD panels.

“We believe the IT display panel industry will benefit greatly from these new premium power solutions from MMS,” said YJ Kim, CEO of Magnachip. “We will continue the Company’s legacy of success with product development, production and technical support in a timely manner.”

* I²C: alternatively known as I2C or IIC, is a synchronous, multi-controller/multi-target, single-ended, serial communication bus.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Mixed-Signal Unveils Power Management IC and Level Shifter for Display Panels in IT Devices

SEOUL, South Korea, May 15, 2024 – Magnachip Semiconductor Corporation (“Magnachip” or the “Company”) (NYSE: MX) celebrated the opening ceremony of Magnachip Technology Company, Ltd. (“MTC”) today at its headquarters located in Hefei, China. MTC is a subsidiary of Magnachip, established on December 20, 2023, to expand the Company’s display driver IC and power IC businesses in China.

The ceremony was attended by local government officials and Company customers and business partners. This significant event underscores Magnachip’s commitment to establishing a strong foothold in China and fostering sustainable growth in the Chinese market.

Hefei is renowned for its burgeoning IC industrial cluster and has the goal of becoming the “IC Capital of China.” By positioning MTC within this dynamic ecosystem, Magnachip aims to leverage Hefei’s robust infrastructure and tap into its rich talent pool. In addition, MTC intends to establish branch offices in Beijing, Chengdu and Shenzhen, which will further strengthen the Company’s China presence by streamlining communication and facilitating seamless market responsiveness to allow the Company to provide prompt customer support.

With over 40 years of operational expertise, Magnachip boasts a vast portfolio of approximately 1,100 registered patents and pending applications, coupled with extensive engineering prowess in power ICs, OLED display driver ICs and power management ICs widely used for communication, Internet of Things, consumer, computing, industrial, and automotive applications. MTC will focus on harnessing Magnachip’s OLED Display Driver IC and power management IC capabilities to serve local China customers to meet the demands of the consumer market in China.

“Our decision to establish an operating subsidiary in mainland China marks another significant milestone in our global growth journey, alongside our Korean headquarters and our presence in Europe and Asia including Japan and Taiwan,” said YJ Kim, CEO of Magnachip. “By establishing a local presence, we are better positioned to understand and fulfill the needs of the Chinese consumer market, while reaffirming our commitment to delivering long-term value for our shareholders.”

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Celebrates the Grand Opening of Magnachip Technology Company in China

Magnachip Reports Results for Third Quarter 2024

Magnachip Expands Production of 7th Generation MXT LV MOSFETs Based on Super Short Channel FET Technology

Magnachip to Announce Third Quarter 2024 Financial Results on October 30, 2024

Magnachip Expands Automotive Power Product Lineup with Four New 40V MXT MV MOSFETs

Magnachip Reports Results for Second Quarter 2024

Magnachip Unveils Its First 8th-Generation MXT LV MOSFET Designed with Super-Short Channel FET II

Magnachip Expands Solar Energy Power Product Lineup with the Release of 1200V IGBT in TO-247PLUS Package

Magnachip to Announce Second Quarter 2024 Financial Results on July 31, 2024

Magnachip Mixed-Signal Unveils Power Management IC and Level Shifter for Display Panels in IT Devices

Magnachip Celebrates the Grand Opening of Magnachip Technology Company in China