Tag: Newsroom

Investors

Magnachip Announces Proposed $65 Million Private Offering of Exchangeable Senior Notes and Stock Repurchase

SEOUL, South Korea and SAN JOSE, Calif., Jan. 10, 2017 /PRNewswire/ — MagnaChip Semiconductor Corporation (NYSE: MX) (the “Company,” and together with its subsidiaries, “MagnaChip”), announced today the proposed offering by its wholly-owned subsidiary, MagnaChip Semiconductor S.A., of $65 million aggregate principal amount of Exchangeable Senior Notes due 2021 (the “Notes”) through a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. MagnaChip expects to grant the initial purchasers of the Notes a 30-day option to purchase up to an additional $9.75 million aggregate principal amount of the Notes on the same terms and conditions.

The Notes will be exchangeable, subject to certain conditions, into common stock of the Company. The interest rate, exchange rate and other terms of the Notes will be determined by negotiations between MagnaChip and the initial purchasers of the Notes.

MagnaChip plans to use the net proceeds from the offering of the Notes (i) for its anticipated cost reduction program to be implemented during the first half of 2017 (approximately $30-40 million), (ii) for capital expenditures (approximately $15-20 million), (iii) to repurchase common stock as part of its stock repurchase program described below (up to $10 million) and (iv) for general corporate purposes.

The Board of Directors of the Company also authorized a stock repurchase program.

This notice does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offers of the Notes will be made only by means of a private offering memorandum. The Notes and the Company’s common stock issuable upon exchange of the Notes, if any, have not been registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold absent registration or an applicable exemption from registration requirements.

About MagnaChip Semiconductor Corporation
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide.

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 statements about our future operating and financial performance. 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 general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, 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 which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2016 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.

CONTACTS:

In the United States:
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Events

Magnachip Selected as “2016 Best Supplier” by LG Display

SEOUL, South Korea and SAN JOSE, Calif., Jan. 6, 2017 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced it was given the prestigious “2016 Best Supplier Award” by LG Display.

The “Best Supplier Award” is the highest possible level of recognition presented to a supplier by LG Display for delivering outstanding product quality. MagnaChip’s achievement is notable because approximately 180 suppliers competed for the award. This is the second consecutive year in which MagnaChip received a supplier award from LG Display. Last year, MagnaChip was honored with LG Display’s “2015 Excellence Supplier Award”.

Korea-based LG Display each year honors key component suppliers that have demonstrated competence for both “zero-defective” products and “zero-accident” performance. Of LG Display’s myriad suppliers, 15 are selected to receive the “Excellence Supplier Award” and the top five suppliers of the year are presented with the “Best Supplier Award”. The “2016 Best Supplier Award” is presented at LG Display’s Annual Quality Festival, where LG Display employees and suppliers are recognized for quality-related achievements.

MagnaChip was selected to receive LG Display’s “2016 Best Supplier Award” in recognition of its achievement of delivering “zero-defective” products and “zero-accident” performance, in particular due to its cooperation with and significant contribution to LG Display’s ongoing efforts to improve manufacturing process stabilization and product competitiveness by building a high-level system of quality assurance.

“MagnaChip has been one of LG Display’s strongest and best partners, doing its best to control quality and maintain partnership this year,” said Mr. Deuk Jung Lee, Senior Vice President and Head of the Quality Assurance Center at LG Display. “We deeply appreciate MagnaChip for its concerted and cooperative efforts to improve LG Display’s manufacturing process stabilization and product competitiveness.”

“I am very pleased and excited that we were able to follow up our selection as the 2015 winner of LG Display’s ‘Excellence Supplier Award’ with the ‘Best Supplier Award’ in 2016, which is highest award given by LG Display to its suppliers,” said YJ Kim, CEO of MagnaChip Semiconductor. Mr. Kim added, “Winning these awards from LG Display clearly shows our ongoing commitment to high quality standards and high levels of customer service, and also demonstrates the value of our technology leadership. We will continue to strive to deliver the highest quality components to LG Display and to the consumers who use LG Display products.”

About MagnaChip Semiconductor
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise resulting from its 30-year operating history. 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:

In the United States:
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Events

Magnachip to Offer 0.13 micron EEPROM based RF-CMOS Technology for Wireless Applications

SEOUL, South Korea and SAN JOSE, Calif., Nov. 14, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, announced today that it now offers 0.13 micron EEPROM- based RF-CMOS technology. This RF-CMOS process was developed using a P-type substrate, which is tailored specifically for wireless applications.

The primary purpose for developing the 0.13 micron EEPROM based RF-CMOS technology is to support Smart Wireless MCU products, which frequently use BLE (Bluetooth Low Energy) as the main wireless communications technology. BLE, also called Bluetooth Smart, is a Bluetooth technology that transmits and receives low-power and low-capacity data, reaching a radius of 10 meters using the 2.4GHz frequency range. To satisfy this market need, MagnaChip has developed a process applicable for Smart Wireless MCU products with embedded RF devices in the 0.13 micron EEPROM process. MagnaChip’s technology, which consumes less power, makes it suitable for various applications that utilize Smart Wireless MCUs, such as smartwatches, smart remote controllers, toys, beacons, wearables, 3D glasses and sensor hub wireless chargers.

Furthermore, MagnaChip’s RF-CMOS technology includes the necessary components such as RF-CMOS devices and passive devices including EEPROM IP. The EEPROM IP is also usable up to 64K bytes of high density. Also, RF modeling for CMOS, HR resistor, MIM capacitor, MOM capacitor, varactor diodes and inductor components was completed for the RF design, and the 4-micron-thick metal process was developed for the RF design. In particular, low Vt N/PMOS was developed to improve the transistor’s RF performance.

To capitalize on the many beneficial features, such as efficient power consumption and wide usability, MagnaChip has been developing various RF-CMOS technologies and will begin full-scale mass production in 2017. MagnaChip is offering RF-SOI and also RF-CMOS processes, which demonstrates that the company has made significant progress in becoming an RF process specialty foundry. Due to increased usage of Smart Wireless MCU products in smart homes, the MCU market is expected to show significant growth in the near future, according to industry observers.

YJ Kim, MagnaChip’s Chief Executive Officer, commented, “We are pleased to offer our 0.13 micron EEPROM based RF-CMOS technology for applications in the Smart Wireless MCU market. Our goal is to continue to develop competitive processes and IPs to serve growing markets and to diversify our technology portfolio to meet the many application-specific needs of our foundry customers.”

About MagnaChip Semiconductor
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise resulting from its 30-year operating history.

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:

In the United States:
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Investors

Magnachip Reports Third Quarter 2016 Financial Results

– 15% Sequential Revenue Growth Driven by Strong Demand Across the Board –

SEOUL, South Korea and SAN JOSE, Calif., Oct. 27, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced financial results for the third quarter ended September 30, 2016.

Revenue for the third quarter of 2016 was $192.3 million, an increase of 15.1% compared to $167.1 million for the second quarter of 2016, and up 24.6% as compared to $154.4 million for the third quarter of 2015. The increase in sequential revenue was 4% higher than the top end of prior guidance and reflected across-the-board strength in customer demand for the Company’s foundry services, display and power products.

Foundry Services revenue in the third quarter of 2016 was $73.9 million, a sequential increase of 18.5%, marking the third consecutive quarter of growth. Revenue in the Standard Products Group was $118.3 million, a 13.1% sequential increase and the fourth consecutive quarter of growth. Standard Product Group revenue in the third quarter was at its highest level since 2012 and Foundry Services revenue rebounded to mid-2015 levels.

Gross profit was $39.1 million, or 20.4% as a percent of revenue for the third quarter of 2016. This compared with gross profit of $36.7 million, or 22.0%, for the second quarter of 2016 and $34.7 million, or 22.5%, for the third quarter of 2015. Foundry gross profit was 23.5% and Standard Products Group gross profit was 18.3% in the third quarter of 2016.

Net income, on a GAAP basis, for the third quarter of 2016 totaled $29.9 million or $0.86 per basic share and $0.85 per diluted share, as compared to net loss of $17.8 million or $0.51 per basic share for the second quarter of 2016 and a net loss of $57.1 million or $1.65 per basic share for the third quarter of 2015. Net income in the third quarter of 2016 was attributable primarily to a non-cash foreign exchange gain on the Company’s intercompany loans.

“Demand was strong across the board in the third quarter, with our Power, Display and Foundry businesses each recording a double digit gain in revenue as compared with the prior quarter,” said YJ Kim, Chief Executive Officer of MagnaChip. “Our foundry business was especially strong, and our fab utilization climbed to the highest level in more than three years.”

In commenting on the third quarter, Chief Financial Officer Jonathan Kim said, “We continued to execute on our strategy to increase fab utilization in order to reduce unit costs and prudently manage cash flows.” Mr. Kim added, “We now are implementing a comprehensive plan to improve gross profit margin.”

Adjusted Net Loss, a non-GAAP financial measure, for the third quarter of 2016 totaled $1.3 million or $0.04 per basic share, compared to Adjusted Net Loss of $1.9 million or $0.05 per basic share in the second quarter of 2016, and compared to Adjusted Net Loss of $10.4 million or $0.30 per basic share in the third quarter of 2015.

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 MagnaChip’s 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 income 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.

Cash and cash equivalents totaled $75.4 million at the end of the 2016 third quarter, down from $83.9 million at the end of our 2016 second quarter.

As previously announced, the Board of Directors has established a Strategic Review Committee (“SRC”) to assist the Board in reviewing, considering and evaluating strategic alternatives that may be available to MagnaChip, including the potential sale of all or a substantial portion of the Company. The SRC continues to evaluate strategic alternatives but is not currently engaged in an active process of considering alternatives for the sale of the entire Company. The SRC will consider any strategic opportunities that arise in the future.

The following table sets forth information relating to our operating segments:

Third Quarter and Recent Company Highlights
The Foundry Services Group and the Standard Products Group both recorded double-digit increases in revenue
Hosted its annual Foundry Technology Symposium in Taiwan
Selected by a leading Taiwanese fabless company to begin volume production on jointly developed power management IC

Business Outlook
For the fourth quarter of 2016, MagnaChip anticipates:
Revenue will be in the range of $174 million to $180 million, a sequential decline of 6% to 10%, reflecting a typical seasonal decline, but representing double-digit year-over-year growth.
Gross profit to be in the range of 22% to 24% as a percent of revenue, representing a sequential and year-over-year improvement.

Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today (October 27, 2016) to discuss the third quarter financial results. The conference call will be webcast live and is also available by dialing 1-216-562-0462. The conference ID number is 1615389 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com. A replay of the conference call will be available the same day and will run for 72 hours. The replay access number is 1-404-537-3406 or toll-free at 1-855-859-2056. The access code is 1615389.

About MagnaChip Semiconductor Corporation
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with a 30-year operating history, owns a portfolio of more than 3,500 registered and pending patents, 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.

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 statements about our future operating and financial performance, including fourth quarter 2016 revenue and gross profit expectations. 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 general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, 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 which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2016 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.

CONTACTS:

In the United States:
Bruce Entin
Investor Relations
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director, Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Investors

Magnachip Schedules Third Quarter 2016 Earnings Release and Conference Call

SEOUL, South Korea and SAN JOSE, Calif., Oct. 18, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) will hold a conference call Thursday, October 27, 2016 at 5 p.m. EDT to discuss the Company’s third quarter 2016 financial results. Participating in the call will be YJ Kim, MagnaChip’s CEO and Jonathan Kim, Executive Vice President and CFO. The earnings press release will be issued after the market closes that day.

The conference call will be webcast live and is also available by dialing 1-216-562-0462 or toll-free at 1-844-413-0952. The conference ID number is 1615389. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com.

A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The access code is 1615389.

About MagnaChip Semiconductor
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise resulting from its 30-year operating history.

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:

In the United States:
Bruce Entin
Investor Relations
Tel. +1.408.625.1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director, Public Relations
Tel. +82.2.6903.3195
chankeun.park@magnachip.com

Events

Magnachip Announces Cost Competitive 0.13 micron Slim Flash Process Technology

SEOUL, South Korea and SAN JOSE, Calif., Oct. 3, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, announced today the availability of a new 0.13 micron Slim Flash process technology, based on 0.13 micron EEPROM. While maintaining the same performance characteristics of the existing EEPROM process, Slim Flash process technology is highly cost competitive because it reduces the number of layers to be embedded by 20 percent and cuts the manufacturing turnaround time by 15 percent.

The embedded NVM (Non-Volatile Memory) EEPROM process, integrates logic, analog, and memory into one chip, and has been adopted in a wide range of applications such as automotive, MCU, touch IC and Auto Focus IC.

Qualification test for 0.13 micron Slim Flash process technology was completed in both device performance and yield categories. All devices passed the WLR (Wafer Level Reliability) test, SRAM, and reliability test of standard cell library. In particular, high density EEPROM IP satisfied all categories related to endurance and data retention test.

In addition to the existing 0.13 micron EEPROM, MagnaChip plans to build a Slim Flash portfolio by merging Slim Flash into various technologies, including BCD and High Voltage. MagnaChip is currently engaging with customers using the new technology, with several products currently in development. Volume production of the Slim Flash process technology is expected to begin as early as the fourth quarter of 2016.

“With the introduction of our 0.13 micron Slim Flash process technology, customers now have access to a cost-saving and time-saving manufacturing process that will improve their overall time to market,” said YJ Kim, Chief Executive Officer of MagnaChip.

About MagnaChip Semiconductor Corporation

MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise resulting from its 30-year operating history.

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:

In the United States:
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Power Solutions

Himax Selects Magnachip to Begin Volume Production On Jointly Developed Power Management IC

MagnaChip Provides 3rd Party IP, Specialty 0.18 micron BCD process

 

SEOUL, South Korea and SAN JOSE, Calif., Sept. 7, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, announced today it has begun volume production of a Power Management IC (PMIC) designed by Himax, a Taiwanese leading fabless company, using MagnaChip’s specialty 0.18 micron BCD (Bipolar CMOS-DMOS) technology process.

MagnaChip collaborated on the PMIC product development with Himax, as both companies plan to expand their presence in the PMIC market. The collaboration follows a similar joint development effort based on MagnaChip’s mature and highly reliable BCD process technology with a major U.S. fabless company. PMIC is a semiconductor that manages and supplies stable power to core chips such as display driver ICs and timing controllers used in digital TVs and monitors.

MagnaChip supported Himax’s product design by providing various process technology options and third-party intellectual property (IP). Volume production commenced approximately one year after the database tapeout of the product, making it possible for Himax to meet its time-to-market goals. With production already underway with Himax, MagnaChip is now engaged on a second product development project with Himax.

“We are pleased to jointly develop and start mass production of a Power Management IC with Himax, a leading fabless company in Taiwan” said YJ Kim, Chief Executive Officer of MagnaChip. “Our collaboration with Himax is part of our strategy to grow together with our customers by using our deep experience in product design and specialty process technologies. MagnaChip and Himax will continue to build on our working relationship and reinforce mutual cooperation in the PMIC market for the future.”

About MagnaChip Semiconductor Corporation
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise resulting from its 30-year operating history.
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:

In the United States:
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Investors

Magnachip Extends Shareholder Rights Plan

SEOUL, South Korea and SAN JOSE, Calif., Sept. 2, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, announced today that its Board of Directors has unanimously approved a second amendment (“Amendment No. 2”) of its Rights Agreement, dated March 5, 2015, as previously amended by Amendment No. 1 to the Rights Agreement, dated March 2, 2016.

Under the terms of Amendment No. 2, the expiration date of the Rights Agreement has been extended six months to March 5, 2017.

The Rights Agreement is designed to ensure fair and equitable treatment of all MagnaChip shareholders in the event of an unsolicited acquisition offer. The Board has determined that Amendment No. 2 is in the best interest of MagnaChip shareholders, as the Board, with assistance from its Strategic Review Committee, continues to consider and evaluate strategic alternatives that may be available to the Company.

About MagnaChip Semiconductor Corporation
Headquartered in South Korea, MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MagnaChip believes it has one of the broadest and deepest ranges of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents, and extensive engineering 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.

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 statements about the Board’s continued evaluation of strategic alternatives. 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 the risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. 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.

CONTACTS:

In the United States:
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Investors

Magnachip Reports Second Quarter 2016 Financial Results

Revenue Exceeds Expectations as Business Turnaround Gains Momentum

SEOUL, South Korea and SAN JOSE, Calif., Aug. 3, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced financial results for the second quarter ended June 30, 2016.

Revenue for the second quarter of 2016 was $167.1 million, an increase of 12.8% compared to $148.1 million for the first quarter of 2016, and up 3.1% compared to $162.0 million for the second quarter of 2015. The double-digit increase in sequential revenue growth was better than expected and reflected healthy demand for the Company’s Display and Power products and Foundry services. The robust growth in revenue in the second quarter also was notable, in part, because it was achieved without the benefit of approximately $9 million in revenue that was recorded in the first quarter from an underutilized 6″ fab that was closed at the end of February.

Foundry Services revenue in the second quarter of 2016 was $62.3 million, a sequential increase of 3.9%, and Standard Products Group revenue was $104.6 million, a sequential increase of 18.9%, and the highest since 2012. Foundry demand continued its gradual recovery driven by new key global IC customers. AMOLED display driver IC revenue surged 73%, quarter-over-quarter, reflecting continued strong demand, primarily from smartphone makers in China. Display products for UHD televisions also showed gains in the quarter, while Power products held steady.

Gross profit was $36.7 million, or 22.0% as a percent of revenue for the second quarter of 2016. This compared with gross profit of $34.2 million, or 23.1%, for the first quarter of 2016 and $35.3 million, or 21.8%, for the second quarter of 2015. Foundry gross profit was 22.8% and Standard Products Group gross profit was 21.4% in the second quarter of 2016.

Net loss, on a GAAP basis, for the second quarter of 2016 totaled $17.8 million or $0.51 per basic share, as compared to net income of $8.1 million or $0.23 per basic and diluted share for the first quarter of 2016 and a net loss of $30.6 million or $0.90 per basic share for the second quarter of 2015. The net loss in the second quarter of 2016 included a one-time extraordinary charge of approximately $5 million. This amount included a previously announced one-time charge of approximately $4 million related to termination benefits payable under a voluntary resignation program for employees who left the company when an underutilized 6″ fab was closed at the end of February. The remainder of the one-time charge pertains to transition costs related to employees who had worked in our 6′ fab.

“Our revenue in the second quarter exceeded expectations and was at the highest level since the fourth quarter of 2014,” said YJ Kim, Chief Executive Officer of MagnaChip. “Customer demand was strong, especially for AMOLED display driver ICs, as well as for our specialized foundry services.” Mr. Kim added, “Our results in the second quarter reflect the success of our strategy over the last two years to streamline the organization, expand our customer base, improve product execution, and leverage our strong position as a leading supplier of analog and mixed signal products and services.”

Chief Financial Officer Jonathan Kim said, “We continued to exercise discipline in managing the balance sheet and preserving our cash in the second quarter, and we maintained tight control over spending while still supporting the strong growth in the business.” Mr. Kim added, “As always, we continue to focus on opportunities to improve cash flow and explore ways to reduce spending.”

Adjusted Net Loss, a non-GAAP financial measure, for the second quarter of 2016 totaled $1.9 million or $0.05 per basic share, compared to Adjusted Net Loss of $2.8 million or $0.08 per basic share in the first quarter of 2016, and compared to Adjusted Net Loss of $11.1 million or $0.32 per basic share in the second quarter of 2015.

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 MagnaChip’s business and operations. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income 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.

Cash and cash equivalents totaled $83.9 million at the end of the second quarter, essentially flat compared with the first quarter when taking into account the one-time effects in the second quarter of a $10 million product pre-payment from a key foundry customer.

The following table sets forth information relating to our operating segments:

Second Quarter and Recent Company Highlights
Total AMOLED display driver IC sales grew 73% in Q2 2016 as compared to Q1 2016
8″ foundry revenue grew 22% in Q2 2016 as compared to Q1 2016, driven in large part by new key global fabless customers
Announced the Company’s Annual U.S. Foundry Technology Symposium in Hsinchu, Taiwan on September 27, 2016

Business Outlook
For the third quarter of 2016, MagnaChip anticipates:
Revenue will be in the range of $180 million to $185 million, a sequential increase of 8% to 11%, reflecting continued demand for products and services in the Standard Products Group and the Foundry Services Group.
Gross profit to be in the range of 21% to 24% as a percent of revenue.

Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today (August 3, 2016) to discuss the second quarter financial results. The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 51291099 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com. A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-855-859-2056 or 1-404-537-3406. The access code is 51291099.

About MagnaChip Semiconductor Corporation
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with a 30-year operating history, owns a portfolio of more than 3,500 registered and pending patents, 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.

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 statements about our future operating and financial performance, including third quarter 2016 revenue and gross profit expectations. 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 general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, 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 which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2016 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.

CONTACTS:

In the United States:
Bruce Entin
Investor Relations
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com

Investors

Magnachip Schedules Second Quarter 2016 Earnings Release and Conference Call

SEOUL, South Korea and SAN JOSE, Calif., July 19, 2016 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) will hold a conference call Wednesday, August 3, 2016 at 5 p.m. EDT to discuss the Company’s second quarter 2016 financial results. Participating in the call will be YJ Kim, MagnaChip CEO and Jonathan Kim, Executive Vice President and CFO. The earnings press release will be issued after the market closes that day.

The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 51291099 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com.

A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-855-859-2056 in the US or 1-404-537-3406 for international callers. The access code is 51291099.

About MagnaChip Semiconductor
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Display Solutions, Power Solutions, and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise resulting from its 30-year operating history.

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:

In the United States:
Bruce Entin
Investor Relations
Tel. +1.408.625.1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Senior Manager, Public Relations
Tel. +82.2.6903.3195
chankeun.park@magnachip.com