Magnachip Reports Results for First Quarter 2026

Apr 28, 2026

Q1 Results Summary

Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) was $46.2 million, approximately at the mid-point of our guidance range of $44.0 to $48.0 million.
Revenue grew by 3.3% year over year and 13.9% quarter over quarter.
Consolidated gross profit margin from continuing operations of 15.6% was above the mid-point of our guidance range of 14.0% to 16.0%.

Recent Highlights

Launched 8th-generation ultra low-Rss(on) 12V BatteryFET designed for smartphone battery power efficiency
Launched 8th-generation 40V and 60V MV MOSFETs for servers and high-performance PCs
On track to launch 55 new-generation products in 2026

SEOUL, South Korea–(BUSINESS WIRE)–Apr. 28, 2026– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the first quarter 2026.

Camillo Martino, Magnachip’s CEO said, “We delivered better-than-seasonal revenue growth in the quarter, reflecting both solid execution and also the impact of the previously communicated inventory and channel actions. We are comfortable with our progress toward our multi-year transformation, and we are showing some good early signs, particularly with the 55 new-generation products launched in 2025. Our focus remains on improving product competitiveness through an accelerated pace of new-generation product launches, which we believe will drive sustainable revenue growth, margin expansion, and improved utilization over time. We believe disciplined execution of our six-pillar strategy will deliver long-term shareholder value.”

Shinyoung Park, Magnachip’s CFO, commented, “We remain committed to financial discipline to significantly improve our financial performance during this multi-year transformation.”

Q1 2026 Financial Highlights

GAAP Results

In thousands of U.S. dollars, except share data

	Q1 2026	Q4 2025	Q/Q Change	Q1 2025	Y/Y Change
Net Sales	46,208	40,570	up 13.9%	44,722	up 3.3%
Power Analog Solutions	41,647	36,811	up 13.1%	39,857	up 4.5%
Power IC	4,561	3,759	up 21.3%	4,865	down 6.2%
Gross Profit Margin	15.6%	9.3%	up 6.3%pts	20.9%	down 5.3%pts
Power Analog Solutions	12.8%	6.5%	up 6.3%pts	17.8%	down 5.0%pts
Power IC	40.4%	36.7%	up 3.7%pts	46.5%	down 6.1%pts
Operating Loss	(7,170)	(12,446)	up 42.4%	(5,278)	down 35.8%
Loss from Continuing Operations	(4,697)	(8,792)	up 46.6%	(4,051)	down 15.9%
Basic Loss per Common Share	(0.13)	(0.24)	up 45.8%	(0.11)	down 18.2%
Diluted Loss per Common Share	(0.13)	(0.24)	up 45.8%	(0.11)	down 18.2%

Non-GAAP Results

In thousands of U.S. dollars, except share data

	Q1 2026	Q4 2025	Q/Q Change	Q1 2025	Y/Y Change
Adjusted Operating Loss	(6,527)	(11,881)	up 45.1%	(4,410)	down 48.0%
Adjusted EBITDA	(3,640)	(8,856)	up 58.9%	(1,205)	down 202.1%
Adjusted Loss	(4,073)	(2,714)	down 50.1%	(2,784)	down 46.3%
Adjusted Loss per Common Share—Diluted	(0.11)	(0.08)	down 37.5%	(0.08)	down 37.5%

(1) 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 historical GAAP results to non-GAAP results is included in this press release.

Q2 2026 Financial Guidance

While actual results may vary, Magnachip currently expects the following:

Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $44.5 million to $48.5 million, roughly flat sequentially and a decrease of 2.3% year-over-year at the mid-point. This compares with $46.2 million in Q1 2026 and $47.6 million in Q2 2025.
Consolidated gross profit margin from continuing operations to be in the range of 17% to 19%, up from 15.6% in Q1 2026 but down from 20.4% in Q2 2025.

Q1 2026 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Tuesday, April 28, 2026, 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 the earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register-conf.media-server.com/register/BId9ff896cba6d4bf6bc5204e0fd2d7a6b

Consolidated Statements of Operations

In thousands of U.S. dollars, except share data (Unaudited)

	Three Months Ended March 31, 2026	Three Months Ended December 31, 2025	Three Months Ended March 31, 2025
Net sales	$46,208	$40,570	$44,722
Cost of sales	39,014	36,792	35,360
Gross profit	7,194	3,778	9,362
Gross profit as a % of net sales	15.6%	9.3%	20.9%
Operating expenses:
Selling, general and administrative expenses	7,666	8,625	9,203
Research and development expenses	6,698	7,599	5,437
Total operating expenses	14,364	16,224	14,640
Operating loss	(7,170)	(12,446)	(5,278)
Interest income	1,063	1,246	1,540
Interest expense	(373)	(393)	(423)
Foreign currency loss, net	(115)	(6,393)	(405)
Other income (loss), net	(10)	14	114
Loss from continuing operations before income tax benefit, net	(6,605)	(17,972)	(4,452)
Income tax benefit, net	(1,908)	(9,180)	(401)
Loss from continuing operations	(4,697)	(8,792)	(4,051)
Income (Loss) from discontinued operations, net of tax	50	713	(4,827)
Net loss	$(4,647)	$(8,079)	$(8,878)
Basic earnings (loss) per common share:
Continuing operations	$(0.13)	$(0.24)	$(0.11)
Discontinuing operations	0.00	0.02	(0.13)
Total	$(0.13)	$(0.22)	$(0.24)
Diluted earnings (loss) per common share:
Continuing operations	$(0.13)	$(0.24)	$(0.11)
Discontinuing operations	0.00	0.02	(0.13)
Total	$(0.13)	$(0.22)	$(0.24)
Weighted average number of shares:
Basic	36,407,581	35,979,697	36,887,841
Diluted	36,407,581	35,979,697	36,887,841

Consolidated Balance Sheets

In thousands of U.S. dollars, except share data (Unaudited)

	March 31, 2026	December 31, 2025
Assets
Current assets
Cash and cash equivalents	$94,554	$103,756
Accounts receivable, net	24,176	26,022
Inventories, net	32,848	34,151
Other receivables	4,203	2,882
Prepaid expenses	5,591	5,062
Hedge collateral	4,970	1,200
Other current assets	3,681	3,782
Total current assets	170,023	176,855
Property, plant and equipment, net	95,072	100,204
Operating lease right-of-use assets	1,797	2,070
Intangible assets, net	404	454
Long-term prepaid expenses	531	584
Deferred income taxes	61,222	64,248
Other non-current assets	6,416	7,114
Total assets	$335,465	$351,529
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$21,330	$20,848
Other accounts payable	10,813	11,444
Accrued expenses	5,490	6,929
Accrued income taxes	45	81
Operating lease liabilities	1,344	1,427
Current portion of long-term borrowings	26,431	—
Other current liabilities	6,264	2,681
Total current liabilities	71,717	43,410
Long-term borrowings	15,855	44,599
Accrued severance benefits, net	11,660	11,502
Non-current operating lease liabilities	509	690
Other non-current liabilities	2,921	3,078
Total liabilities	102,662	103,279
Stockholders’ equity
Common stock ($0.01 par value; 150,000,000 shares authorized; 58,249,450 issued / 36,440,854 outstanding at Mar 31, 2026; 58,027,696 issued / 36,219,100 outstanding at Dec 31, 2025)	581	579
Additional paid-in capital	282,178	281,537
Retained earnings	210,205	214,852
Treasury stock (21,808,596 shares)	(229,910)	(229,910)
Accumulated other comprehensive loss	(30,251)	(18,808)
Total stockholders’ equity	232,803	248,250
Total liabilities and stockholders’ equity	$335,465	$351,529

Consolidated Statements of Cash Flows

In thousands of U.S. dollars (Unaudited)

	Three Months Ended March 31, 2026	Three Months Ended March 31, 2025
Cash flows from operating activities
Net loss	$(4,647)	$(8,878)
Depreciation and amortization	2,882	3,273
Provision for severance benefits	1,212	1,514
Loss (gain) on foreign currency, net	4,262	(35)
Provision (reversal) for inventory reserves	(321)	1,208
Stock-based compensation	643	1,030
Deferred income tax assets	8	(415)
Others, net	74	225
Accounts receivable, net	1,611	635
Inventories	(191)	(3,259)
Other receivables	(1,547)	(811)
Prepaid expenses	(152)	1,233
Other current assets	(1,725)	970
Accounts payable	571	2,542
Other accounts payable	(254)	(2,622)
Accrued expenses	(1,068)	(111)
Accrued income taxes	(33)	(6)
Other current liabilities	593	(901)
Other non-current liabilities	53	354
Payment of severance benefits	(228)	(325)
Others, net	(187)	(290)
Net cash provided by (used in) operating activities	1,556	(4,669)
Cash flows from investing activities
Payment of hedge collateral	(3,785)	—
Proceeds from disposal of plant, property and equipment	49	—
Purchase of property, plant and equipment	(3,915)	(208)
Payment for intellectual property registration	(24)	(63)
Collection of guarantee deposits	1,891	21
Payment of guarantee deposits	(158)	(139)
Net cash used in investing activities	(5,942)	(389)
Cash flows from financing activities
Acquisition of treasury stock	(176)	(1,306)
Repayment of financing related to water treatment facility arrangement	(110)	(111)
Repayment of principal portion of finance lease liabilities	(34)	(38)
Net cash used in financing activities	(320)	(1,455)
Effect of exchange rates on cash and cash equivalents	(4,496)	557
Net decrease in cash and cash equivalents	(9,202)	(5,956)
Beginning of the period	103,756	138,610
End of the period	$94,554	$132,654

Reconciliation of Operating Loss to Adjusted Operating Loss (Continuing Operations)

In thousands of U.S. dollars (Unaudited)

	Q1 2026	Q4 2025	Q1 2025
Operating loss	$(7,170)	$(12,446)	$(5,278)
Equity-based compensation expense	643	565	868
Adjusted Operating Loss	$(6,527)	$(11,881)	$(4,410)

Reconciliation of Loss from Continuing Operations to Adjusted EBITDA and Adjusted Loss

In thousands of U.S. dollars, except share data (Unaudited)

	Q1 2026	Q4 2025	Q1 2025
Loss from continuing operations	$(4,697)	$(8,792)	$(4,051)
Interest income	(1,063)	(1,246)	(1,540)
Interest expense	373	393	423
Income tax benefit, net	(1,908)	(9,180)	(401)
Depreciation and amortization	2,877	3,019	3,120
EBITDA – continuing operations	(4,418)	(15,806)	(2,449)
Equity-based compensation expense	643	565	868
Foreign currency loss, net	115	6,393	405
Derivative valuation loss (gain), net	20	(8)	(29)
Adjusted EBITDA – continuing operations	$(3,640)	$(8,856)	$(1,205)
Loss from continuing operations	$(4,697)	$(8,792)	$(4,051)
Equity-based compensation expense	643	565	868
Foreign currency loss, net	115	6,393	405
Derivative valuation loss (gain), item net	20	(8)	(29)
Income tax effect on non-GAAP adjustments	(154)	(872)	23
Adjusted Loss – continuing operations	$(4,073)	$(2,714)	$(2,784)
Basic Adjusted Loss per share	$(0.11)	$(0.08)	$(0.08)
Diluted Adjusted Loss per share	$(0.11)	$(0.08)	$(0.08)
Weighted avg shares – basic	36,407,581	35,979,697	36,887,841
Weighted avg shares – diluted	36,407,581	35,979,697	36,887,841

Safe Harbor for Forward-Looking Statements

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a substantial number of registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

Investor Contact:
Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
mike@bishopir.com

Source: Magnachip Semiconductor Corporation

– R_{SS(on) Typ.}below 1mΩ — delivering ultra-low on-resistance for battery protection circuits (PCMs)

– 48% reduction in specific on-resistance (Rsp) and 185% improvement in current density compared to the previous generation

– Designed to meet next-generation smartphone requirements for ultra-fast charging and high-efficiency battery protection

SEOUL, South Korea, April 2026 — Magnachip Semiconductor Corporation (NYSE: MX, “Magnachip”) today announced the launch of two new 8th-generation Ultra Low-Ron 12V low-voltage (LV) MOSFETs designed for high-performance smartphone battery protection circuits (PCMs). These new products target next-generation smartphones, where ultra-fast charging and energy efficiency are increasingly critical, and represent an expansion of Magnachip’s product lineup, strengthening its competitiveness in the mobile battery protection FET market. One of them is in mass production and is currently being supplied to a major global smartphone manufacturer, having demonstrated proven performance and reliability.

As smartphones incorporate advanced AI functionalities and increasingly high-performance applications, computational loads are rising, driving the importance of power efficiency and charging performance. As a result, MOSFETs used in battery protection circuits (PCMs) are required to deliver low on-resistance, high current density, and efficient performance within limited board space. In addition, the growing adoption of innovative form factors such as foldable and rollable devices further constrains circuit design space, increasing the importance of enhancing performance within the same footprint while reducing component count.

The new products are designed as main switching devices in smartphone battery protection circuits (PCMs), performing critical functions such as overcharge and over-discharge protection, as well as charge and discharge current control. They offer two key advantages:

First, by significantly reducing on-resistance within the same package size, the products minimize heat generation. For example, the MDWC12D013PERH achieves more than a 50% improvement in on-resistance (R_ss(on)) compared to Magnachip’s 7th-generation device of the same size, resulting in a temperature reduction of up to 10°C under identical test conditions. This reduced heat contributes to extended battery life and improved charging stability in smartphones.

Second, enhanced current density and pin-to-pin compatibility enable replacement and integration within existing circuit designs, reducing PCB footprint and the number of FETs required, which helps reduce production costs. This allows manufacturers to utilize the saved space for larger battery capacity or slimmer device designs.

The new products incorporate Magnachip’s 8th-generation technology, utilizing a high-density trench cell structure. They reduce specific on-resistance (Rsp) by approximately 48% and improve current density by approximately 185% compared to the previous generation, achieving R_{SS(on) Typ.} below 1mΩ.

According to Omdia, generative AI has emerged as a key trend in the technology market and is rapidly expanding, driven by the consumer (digital) segment. The market is projected to grow from approximately $7.7 billion in 2022 to $30.4 billion by 2028, with smartphones expected to account for a major share of applications.

In response to these market trends, Magnachip plans to introduce 22V Ultra Low-Ron products within the year, further expanding its LV MOSFET portfolio for high-performance mobile devices.

“Achieving low on-resistance and superior thermal performance within limited space is a key challenge in smartphone battery protection circuit design. Our 8th-generation Ultra Low-Ron 12V LV MOSFET is designed to address these requirements, delivering enhanced efficiency and reliability, and is expected to provide highly competitive technical value in this application. Leveraging our expertise in power semiconductor design and manufacturing, Magnachip will continue to enhance its product competitiveness across a wide range of applications, including mobile,” said Hyuk Woo, CTO of Magnachip Semiconductor.

At PCIM Europe 2026 in Nuremberg, Germany (Hall 6, Booth 337), Magnachip will showcase its power semiconductor solutions, including these new products.

Related Links

Power Solutions > MXT MOSFETs > 12V

Related Articles

Magnachip Unveils Its First 8th-Generation MXT LV MOSFET Designed with Super-Short Channel FET II
Magnachip Launches New 24V BatteryFET for Tri-Fold Smartphone Battery Protection

About Magnachip Semiconductor

Contacts:

Mike Bishop

United States (Investor Relations)

Bishop IR, LLC

Tel. +1-415-891-9633

mike@bishopir.com

Kyeongah Cho

Global Marketing Communication

Magnachip Semiconductor

Tel. +82-2-6903-3179

pr@magnachip.com

In the Media

Magnachip Launches 8th-generation Ultra Low-Rss(on) 12V BatteryFET Designed for Smartphone Battery Power Efficiency

– Advanced Shielded-Gate Trench (SGT) Technology Simultaneously Improves Current Density and Switching Speed

– Targeting the Next-Generation Power Supply Market with High-Temperature Reliability and Energy Efficiency Requirements

SEOUL, South Korea, Mar 2026 – Magnachip Semiconductor Corporation (NYSE: MX, “Magnachip”) today announced the launch of its new 8th-generation 40V and 60V Medium-Voltage (MV) MOSFETs, designed for server and high-performance PC power supply units.

As power demand in the global server and data center market increases, power efficiency and power density have emerged as important factors for power semiconductor solutions used in servers and data center applications. With these new 8th-generation MV MOSFETs, Magnachip expands its solution offerings to simultaneously meet customers’ efficiency and reliability requirements in the fast-growing server and high-performance computing (HPC) power supply market, further reinforcing its competitiveness in high-value-added power solutions.

These new products are designed for use in the Synchronous Rectification (SR) stage of server and PC power systems. Incorporating Advanced SGT technology, the 40V products deliver up to 40% improvement in current density and approximately 25% faster switching speed compared to the previous generation, while the 60V products achieve up to 50% improvement in current density and 60% faster switching speed. In addition, fast anti-parallel diode technology is applied to rapidly dissipate residual current generated during switching, which can enhance overall system stability. The devices support a wide operating temperature range of up to 175°C, which enables stable performance even in high-temperature environments, and adopt a compact PDFN56 package to facilitate high-density and compact power designs. Built to meet JEDEC standards, these MOSFETs are designed for use not only in server and high-performance PC power supply units, but also in solar inverters and industrial power systems where high efficiency and reliability are important.

Following the launch of the 0.7mΩ 40V product in May 2025, Magnachip is further strengthening its 8th-generation MV MOSFET portfolio with diverse voltage and R_DS(on)options by introducing three additional products: 0.8mΩ 40V, 1.0mΩ 40V, and 1.05mΩ 60V devices. According to global market research firm Omdia, the global server and data center power supply market (Computing and Data Storage) is projected to grow from approximately $2.3 billion in 2025 to $3.0 billion in 2029, representing a compound annual growth rate (CAGR) of 7.4%. Through this expanded product lineup, Magnachip aims to further strengthen its technological competitiveness and market share in the rapidly growing power semiconductor market.

“These new products are expected to serve as a solution that can enhance both efficiency and reliability in server and high-performance PC power systems,” said Hyuk Woo, Chief Technology Officer of Magnachip. “Leveraging our accumulated power semiconductor design expertise and proven manufacturing capabilities, Magnachip will continue to introduce high-value-added power solutions across server, PC, and industrial applications.”

At PCIM Europe 2026 in Nuremberg, Germany (Hall 6, Booth 337), Magnachip will present its latest MV MOSFET solutions, highlighting their role in enabling high-efficiency and high-density power systems.

Related Links

Power Solutions > MXT MOSFETs > 40V

Power Solutions > MXT MOSFETs > 60V

Related Articles

Magnachip Introduces 25 New Gen6 SJ MOSFETs to Expand Power Product Lineup for AI, Industrial Applications and Smart Home Appliances

About Magnachip Semiconductor

CONTACTS:

Mike Bishop

United States (Investor Relations)

Bishop IR, LLC

Tel. +1-415-891-9633

mike@bishopir.com

Kyeongah Cho

Global Marketing Communication

Magnachip Semiconductor

Tel. +82-2-6903-3179

pr@magnachip.com

In the Media

Magnachip Launches 8th-Generation 40V and 60V MV MOSFETs for Servers and High-Performance PCs

We Power the Motors That Move the World

Magnachip’s power semiconductor solutions are expanding beyond consumer electronics into motor control applications for various fields such as electric vehicles, industrial automation, and robotics.

Hall 6, Booth 337 June 9–11, 2026 Nuremberg, Germany

See Floorplan

Overview

PCIM Europe is the leading global exhibition for power electronics, intelligent motion, and energy management.
With over 45 years of engineering heritage, Magnachip showcases high-performance MOSFETs, IGBTs, and Power ICs designed to enable smarter and more efficient energy management.

From everyday consumer electronics to highly reliable automotive inverters, experience Magnachip’s advanced power semiconductor technologies.

What You’ll Experience

🔬 Product Showcase
Explore Magnachip’s latest power semiconductor products, including MOSFETs, IGBTs, and BatteryFETs, along with key application examples.

⚡ Product Portfolio
Discover core product lineups and design approaches for power conversion and motor drive applications.

🤝 Engineering Consultation
Engage in 1:1 discussions with on-site engineers to explore solutions tailored to your specific design requirements.

Key Highlights at PCIM Europe 2026

1. Proven Consumer & General Power Portfolio

Magnachip has established proven technology and mass production experience by supplying global top-tier smartphone and TV brands.
Our SJ MOSFET and LV MOSFET lineup offers ready-to-deploy solutions across a wide range of applications.

2. Expanding into Industrial & Energy Markets

Discover IGBT and module solutions designed for high-power applications such as solar, ESS, and AI servers.
Advanced packaging technologies deliver high power density and excellent thermal performance.

3. Predictive Maintenance & Future Mobility

Magnachip provides high-efficiency motor control solutions for electric vehicles, industrial automation, and robotics.
Through collaboration with Hyundai Mobis, we are strengthening our capabilities in electrified inverter technologies.

“Magnachip continues to strengthen its leadership in power semiconductors, built on decades of engineering excellence and trusted partnerships. Following the launch of 55 new products in 2025, we plan to introduce more than 40 additional innovative solutions in 2026 to support our customers’ growth.”
— Camillo Martino, CEO of Magnachip —

Call to Action

Meet your ideal partner to power your next design.
Schedule a meeting with Magnachip experts during PCIM Europe to explore tailored solutions.

• To register, contact us via email
• Email: kyeongah.cho@magnachip.com

Magnachip Semiconductor NYSE: MX | www.magnachip.com

Q4 Results Summary

Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) was $40.6 million, approximately at the mid-point of our guidance range of $38.5 to $42.5 million.
Consolidated gross profit margin from continuing operations was 9.3%, slightly above the mid-point of our guidance range of 8.0% to 10.0%.
Product revenue from our Communications business grew 24% sequentially and 68% year-over-year.

Q4 Highlights

Launched 24 new-generation products in the fourth quarter.

2025 Highlights

Launched 55 new-generation products in 2025, compared with four for the full year 2024.
Signed a strategic agreement to expand our industrial business based on a jointly developed IGBT technology with Hyundai Mobis.
Executed multiple operating expense cost reduction programs, including a headcount reduction program, expected to generate more than $2 million in annualized savings beginning in Q4 2025.
$21.4 million was spent in 2025 for the Gumi fab upgrade, of which $17.0 million was funded through equipment financing loans.

SEOUL, South Korea–(BUSINESS WIRE)–Mar. 4, 2026– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the fourth quarter and full year 2025.

Camillo Martino, Magnachip’s CEO said, “Magnachip has a strong foundation in power semiconductors, built on decades of engineering expertise, trusted customer relationships, and a reputation for quality and reliability. Over the past year, we have taken deliberate actions to simplify the business, significantly reduce our cost structure, and sharpen our focus on power, while increasing investment in new-generation products where we can compete and win.”

Mr. Martino added, “While near-term market conditions remain challenging, the changes we have made are deliberate and structural. With a more focused strategy, a stronger product pipeline, and disciplined execution, we believe Magnachip is better positioned to improve competitiveness, strengthen margins over time, and drive a more consistent recovery.”

Q1 2026 Financial Guidance

While actual results may vary, Magnachip currently expects the following:

Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $44.0 to $48.0 million, up 13.4% sequentially and up 2.9% year-over-year at the mid-point. This compares with $40.6 million in Q4 2025 and $44.7 million in Q1 2025.
Consolidated gross profit margin from continuing operations to be in the range of 14% to 16%, up from 9.3% in Q4 2025 but down from 20.9% in Q1 2025.

Q4 and Full Year 2025 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET today, Wednesday, March 4, 2026, 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-conf.media-server.com/register/BI9d3aea74bb7c44d78d19c946518cef3c

Safe Harbor for Forward-Looking Statements

Information in this press 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 first quarter 2026 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 including between Russia-Ukraine and between Israel, the United States and Iran, sustained military action and conflict in the Red Sea, global macroeconomic conditions resulting from trade and tariff actions instituted between the U.S. and other countries on Magnachip’s future operating results and financial performance, and the potential impacts of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments. 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 recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia-Ukraine and between Israel, the United States and Iran and sustained military action and conflict in the Red Sea; disruptions or economic impact resulting from the United States government shutdown, including disruptions at U.S. government agencies caused by reduction in staffing, operations, funding shortages or other concerns that may prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our customer’s businesses may rely; 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; the potential impact of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments; 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 SEC, including our Form 10-K filed on March 14, 2025, 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260304580132/en/

Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
mike@bishopir.com

Source: Magnachip Semiconductor Corporation

– Achieves a 26% reduction in chip size and a 31% improvement in R_ss(on)based on Super-Short Channel FET technology

– Expands battery protection solutions for a wide range of mobile devices.

SEOUL, South Korea— Magnachip Semiconductor Corporation (NYSE: MX, “Magnachip”) today announced the launch of its new 7^th-generation 24V MXT LV MOSFET[1] specifically designed for battery protection circuits in next-generation tri-fold smartphones, strengthening its presence in the premium foldable smartphone market. The product is now in mass production and is currently being supplied to a major global smartphone manufacturer, having demonstrated proven performance and reliability.

The newly introduced 24V Dual N-channel MOSFET (MDWC24D058ERH) incorporates Magnachip’s proprietary Super-Short Channel FET (SSCFET®)[2] technology, reducing chip size by approximately 26% compared to the previous version. This enables manufacturers to reduce the footprint of the battery protection circuit module (PCM) board by more than 20%, allowing the saved space to be used for increased battery capacity or slimmer device designs.

Tri-fold smartphones feature a new form factor that folds twice and operates three displays simultaneously, enabling high-performance multitasking. As a result, their internal structures have become more complex, power-efficient and reliable, while also becoming increasingly critical in design. Accordingly, these devices demand highly integrated and efficient MOSFET solutions to manage complex internal structures while ensuring power stability.

In addition to tri-fold smartphones, the new product can be applied across a wide range of mobile applications, including wearable devices and tablets. It reduces R_SS(on),a major source of power loss, by up to approximately 31%, helping to reduce heat generation. The new product also improves current density per unit area by approximately 48% compared to conventional trench processes, supporting stable voltage control under high-current conditions. In addition, it integrates electrostatic discharge (ESD) protection of more than 2kV, helping to safeguard battery systems from external disturbances.

According to market research firm Omdia, the market for silicon power MOSFETs below 40V, including smartphone batteryFETs, is expected to grow from approximately $4.2 billion in 2025 to approximately $5.2 billion in 2029, representing a compound annual growth rate of about 4.6%. Within this market, the premium smartphone segment, including tri-fold smartphones, is expected to drive growth, supported by increasing demand for high-performance and high-efficiency components.

“Tri-fold smartphones represent high-end mobile devices that require advanced technology and superior component reliability,” said Hyuk Woo, Chief Technology Officer of Magnachip. “Through the supply of this new MOSFET product, we have once again demonstrated Magnachip’s power semiconductor design capabilities and technological competitiveness. Going forward, we will continue to expand our power semiconductor portfolio for a wide range of mobile applications, including smartphones, wearables, and tablets, through ongoing innovation.”

[1] MXT LV MOSFET(Magnachip eXtreme Trench Low Voltage MOSFET): Magnachip’s low-voltage MOSFET product family below 30V based on its latest trench process technology.

[2] SSCFET®(Super-Short Channel FET): Magnachip’s MOSFET design technology that applies a minimized channel-length structure to achieve low on-resistance and high current capability.

Related Links

Power Solutions > MXT MOSFETs > 24V

Related Articles

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

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

About Magnachip Semiconductor

CONTACTS:

Mike Bishop

United States (Investor Relations)

Bishop IR, LLC

Tel. +1-415-891-9633

mike@bishopir.com

Kyeongah Cho

Global Marketing Communication

Magnachip Semiconductor

Tel. +82-2-6903-3179

pr@magnachip.com

In the Media

Magnachip Launches New 24V BatteryFET for Tri-Fold Smartphone Battery Protection

– Applies Advanced Field Stop Trench Technology
– Reduces Cell Pitch by 40% Compared to Previous Generation
– Increases Product Scalability Through Improved Current Density and Enhanced RBSOA
– Accelerates Market Expansion with Diverse Capacity Lineup

Seoul, January 20, 2026 — Magnachip Semiconductor Corporation (NYSE: MX, “Magnachip”) today announced the launch of its new series of Insulated Gate Bipolar Transistors (IGBTs) designed for solar inverters and industrial Energy Storage Systems (ESS), further strengthening its position in the high-efficiency power semiconductor market.

The newly introduced 650V and 1200V new Generation Discrete IGBT products are designed for use in solar inverters and ESS applications. By significantly reducing the cell pitch from the previous generation, Magnachip has achieved a substantial increase in current capacity. In addition, the improved Reverse Bias Safe Operating Area (RBSOA) helps to ensure stable and reliable performance under harsh high-voltage and high-current conditions. The products are available in both standard TO-247 and high-capacity TO-247 Plus packages, providing customers with design flexibility for a wide range of applications.

According to market research firm Omdia, the global solar inverter and ESS market is expected to grow from approximately $1.4 billion in 2024 to $2.7 billion in 2029, representing a compound annual growth rate (CAGR) of approximately 10.6%. With global carbon-neutrality initiatives accelerating, energy efficiency and high power density have become key performance metrics in inverter design.

Magnachip already supplies IGBT products to major domestic and international solar inverter manufacturers, earning recognition for high product quality and advanced technology. With this new product launch, the company is expanding its portfolio to cover a wide capacity range — from residential inverters to industrial systems up to 150 kW — allowing customers to select suitable products for their operating environment.

The new generation IGBTs leverage Advanced Field Stop Trench technology, with enhanced design and refined process technology compared to the previous generation. Specifically, the cell pitch has been reduced by approximately 40%, significantly increasing current capacity within the same die area. Furthermore, RBSOA, which defines the semiconductor’s safe operating limits, has been enhanced by over 30%, ensuring robust stability under high-voltage and high-current conditions. This makes it suitable for a wider range of power applications.

Magnachip plans to further expand its product lineup in the first half of 2026 by introducing a high-current series rated up to 650V 150A, as well as new 750V products. The company also plans to add the ‘TO-247-4Lead’ package, featuring a Kelvin pin for improved switching efficiency, further enhancing its IGBT lineup. This will enable Magnachip to offer a broader range of design options for customers in the solar and ESS markets, which are trending toward higher capacity and efficiency.

“This new generation IGBT series enhances efficiency and reliability through refined process technologies,” said Hyuk Woo, CTO of Magnachip. “Building on our market-proven technology and production capabilities, we will continue to expand our solution lineup to better address diverse customer needs.”

Power Solutions > Discrete IGBTs > 1200V

Related Articles

Magnachip Unveils a New 650V IGBT for Solar Inverters

Magnachip Launches Two New Gen6 650V IGBTs to Expand Its Solar Energy Power Product Lineup

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 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:

Mike Bishop

United States (Investor Relations)

Bishop IR, LLC

Tel. +1-415-891-9633

mike@bishopir.com

Kyeongah Cho

Global Marketing Communication

Magnachip semiconductor

Tel. +82-2-6903-3179

pr@magnachip.com

In the Media

Magnachip Targets Solar and Energy Storage Systems Markets with New Generation of High-Efficiency IGBT Series

Q3 Results Summary

Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) was $45.9 million, approximately at the mid-point of our guidance range of $44.0 to $48.0 million.
Consolidated gross profit margin from continuing operations of 18.6% was at the low end of our guidance range of 18.5% to 20.5%.
Product revenue from our Communications segment grew 34% sequentially and 95% year over year.

Recent Highlights

Executed multiple operating expense cost reduction programs, including a headcount reduction program, which are expected to generate approximately $2.5 million in annualized savings.
Implemented a plan to reduce the capital expenditure investments for the Gumi fab upgrade by more than 50% over the next two years, compared to the previously expected range of $65 to $70 million.
Launched 30 new-generation PAS products in the first nine months of 2025, with plans to launch at least additional 20 new-generation products in fourth quarter 2025.
Signed a strategic agreement to expand our industrial business based on a jointly developed IGBT technology with Hyundai Mobis.

SEOUL, South Korea–(BUSINESS WIRE)–Nov. 3, 2025– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the third quarter 2025.

Camillo Martino, Magnachip’s CEO said, “Our top priority is to stabilize our financial position and establish a solid foundation for business recovery. At the same time, we have restructured our go-to-market organization and we are revitalizing our product portfolio to enhance our competitiveness, particularly in China. In the first three quarters of 2025, we launched 30 new-generation products, compared to only two in the first three quarters of 2024. We currently plan to launch at least another 20 new-generation products in the fourth quarter of 2025, bringing the total for 2025 to at least 50 new-generation products, in comparison to only four in all of 2024.”

Mr. Martino added, “We recognize that we are entering a challenging period ahead as we right-size as a pure-play power products company. However, we believe that we are moving in the right direction and are committed to exploring all strategic options to position Magnachip for success.”

Q3 2025 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP⁽¹⁾
	Q3 2025		Q2 2025⁽¹⁾		Q/Q change			Q3 2024⁽¹⁾		Y/Y change
Consolidated Revenues	45,946		47,622		down	3.5	%	55,434			down	17.1	%
Power solutions business	45,946		47,622		down	3.5	%	52,994			down	13.3	%
Power Analog Solutions	41,548		42,261		down	1.7	%	47,574			down	12.7	%
Power IC	4,398		5,361		down	18.0	%	5,420			down	18.9	%
Transitional Fab 3 foundry services⁽²⁾	—		—		n/a	—		2,440			n/a	—
Consolidated Gross Profit Margin	18.6	%	20.4	%	down	1.8	%pts	20.8	%		down	2.2	%pts
Power solutions business	18.6	%	20.4	%	down	1.8	%pts	22.0	%		down	3.4	%pts
Power Analog Solutions	16.0	%	18.2	%	down	2.2	%pts	19.4	%		down	3.4	%pts
Power IC	43.2	%	37.4	%	up	5.8	%pts	44.6	%		down	1.4	%pts
Transitional Fab 3 foundry services⁽²⁾	—		—		n/a	—		(6.5)	%		n/a	—
Operating Loss	(11,538)		(6,598)		down	n/a		(4,487)			down	n/a
Income (Loss) from continuing operations	(10,609)		9,203		down	n/a		(3,921)			down	n/a
Basic Earnings (Loss) per Common Share	(0.29)		0.26		down	n/a		(0.11)			down	n/a
Diluted Earnings (Loss) per Common Share	(0.29)		0.25		down	n/a		(0.11)			down	n/a


	In thousands of U.S. dollars, except share data
	Non-GAAP⁽¹⁾⁽³⁾
	Q3 2025		Q2 2025⁽¹⁾		Q/Q change			Q3 2024⁽¹⁾		Y/Y change
Adjusted Operating Loss	(7,421)		(4,776)		down	n/a		(2,851)			down	n/a
Adjusted EBITDA	(3,964)		(1,542)		down	n/a		779			down	n/a
Adjusted Loss	(390)		(1,978)		up	n/a		(7,623)			up	n/a
Adjusted Loss per Common Share—Diluted	(0.01)		(0.05)		up	n/a		(0.20)			up	n/a

(1)		GAAP and non-GAAP metrics summarized herein do not include any amounts relating to the Display business, which has been classified as discontinued operations from Q1 2025, and we have reclassified certain prior year amounts to conform to the current year’s presentation.
(2)		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 had wound down these foundry services by the end of 2024. Because these foundry services during the wind-down period had still been provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we continued 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 was completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the Power solutions business allows investors to better understand the results of our core PAS and Power IC businesses.
(3)		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 historical GAAP results to non-GAAP results is included in this press release.

Q4 and Full-year 2025 Financial Guidance

While actual results may vary, Magnachip currently expects the following:

For Q4 2025:

Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $38.5 to $42.5 million, down 11.9% sequentially and down 17.1% year-over-year at the mid-point on an equivalent basis due in part to a one-time $2.5 million incentive program we expect to execute in Q4 to reduce higher levels of inventory in the channel. This compares with equivalent revenue of $45.9 million in Q3 2025 and $48.9 million in Q4 2024.
Consolidated gross profit margin from continuing operations to be in the range of 8% to 10% due to the above-described one-time incentive as well as a lower fab utilization rate. We expect this incentive program to be a 600 basis point negative impact. This compares with equivalent gross profit margin of 18.6% in Q3 2025 and 23.2% in Q4 2024.

For the full-year 2025:

Consolidated revenue from continuing operations is expected to be down by 3.8% year-over-year at the mid-point of Q4 revenue guidance on an equivalent basis. The equivalent revenue in 2024 was $185.8 million.
Consolidated gross profit margin from continuing operations is expected to be between 17% to 18% and the above-described one-time incentive in Q4 is expected to have an about 100 basis point negative impact in the full-year consolidated gross profit margin. The equivalent gross profit margin was 21.5% in 2024.

Q3 2025 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Monday, November 3, 2025, 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-conf.media-server.com/register/BI60394e1855934e79b00744c413a48403

Safe Harbor for Forward-Looking Statements

Information in this press 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 2025 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 including between Russia-Ukraine and between Israel-Hamas and Iran, sustained military action and conflict in the Red Sea, global macroeconomic conditions resulting from trade and tariff actions instituted between the U.S. and other countries on Magnachip’s future operating results and financial performance, and the potential impacts of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments. 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 recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia-Ukraine and between Israel-Hamas and Iran and sustained military action and conflict in the Red Sea; disruptions or economic impact resulting from the United States government shutdown, including disruptions at U.S. government agencies caused by reduction in staffing, operations, funding shortages or other concerns that may prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our customer’s businesses may rely; 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; the potential impact of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments; 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 SEC, including our Form 10-K filed on March 14, 2025, 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 power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 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, 2025			June 30, 2025⁽¹⁾			September 30, 2024⁽¹⁾			September 30, 2025			September 30, 2024⁽¹⁾
Revenues:
Net sales – Power solutions business	$	45,946		$	47,622		$	52,994		$	138,290		$	136,970
Net sales – Transitional Fab 3 foundry services		—			—			2,440			—			8,302
Total revenues		45,946			47,622			55,434			138,290			145,272
Cost of sales:
Cost of sales – Power solutions business		37,405			37,910			41,329			110,675			108,354
Cost of sales – Transitional Fab 3 foundry services		—			—			2,599			—			9,267
Total cost of sales		37,405			37,910			43,928			110,675			117,621
Gross profit		8,541			9,712			11,506			27,615			27,651
Gross profit as a percentage of Power solutions business net sales		18.6	%		20.4	%		22.0	%		20.0	%		20.9	%
Gross profit as a percentage of total revenues		18.6	%		20.4	%		20.8	%		20.0	%		19.0	%
Operating expenses:
Selling, general and administrative expenses		8,312			8,976			9,521			26,491			28,341
Research and development expenses		7,773			6,488			6,472			19,698			18,455
Early termination and other charges		3,994			846			—			4,840			—
Total operating expenses		20,079			16,310			15,993			51,029			46,796
Operating loss		(11,538)			(6,598)			(4,487)			(23,414)			(19,145)
Interest income		1,255			1,322			1,939			4,117			6,214
Interest expense		(469)			(373)			(472)			(1,265)			(1,143)
Foreign currency gain (loss), net		(4,280)			10,797			5,247			6,112			(3,388)
Other income (loss), net		253			(83)			(31)			284			121
Income (Loss) from continuing operations before income tax expense (benefit), net		(14,779)			5,065			2,196			(14,166)			(17,341)
Income tax expense (benefit), net		(4,170)			(4,138)			6,117			(8,709)			2,267
Income (Loss) from continuing operations		(10,609)			9,203			(3,921)			(5,457)			(19,608)
Loss from discontinued operations, net of tax		(2,481)			(8,880)			(5,696)			(16,188)			(18,423)
Net income (loss)	$	(13,090)		$	323		$	(9,617)		$	(21,645)		$	(38,031)
Basic earnings (loss) per common share—
Continuing operations	$	(0.29)		$	0.26		$	(0.11)		$	(0.15)		$	(0.52)
Discontinuing operations		(0.07)			(0.25)			(0.15)			(0.45)			(0.48)
Total	$	(0.36)		$	0.01		$	(0.26)		$	(0.60)		$	(1.00)
Diluted earnings (loss) per common share—
Continuing operations	$	(0.29)		$	0.25		$	(0.11)		$	(0.15)		$	(0.52)
Discontinuing operations		(0.07)			(0.24)			(0.15)			(0.45)			(0.48)
Total	$	(0.36)		$	0.01		$	(0.26)		$	(0.60)		$	(1.00)
Weighted average number of shares—
Basic		35,934,406			36,083,703			37,468,849			36,298,491			38,060,682
Diluted		35,934,406			36,768,647			37,468,849			36,298,491			38,060,682

_______________
(1)		We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

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

	September 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	108,005	$	138,610
Accounts receivable, net		31,431		28,402
Inventories, net		37,375		30,535
Other receivables		4,155		4,444
Prepaid expenses		6,022		10,379
Hedge collateral		—		2,080
Other current assets		10,375		4,779
Total current assets		197,363		219,229
Property, plant and equipment, net		94,918		81,463
Operating lease right-of-use assets		2,423		3,107
Intangible assets, net		498		507
Long-term prepaid expenses, net		590		165
Deferred income taxes		55,573		52,889
Other non-current assets		8,241		21,956
Total assets	$	359,606	$	379,316
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	17,546	$	21,642
Other accounts payable		12,334		10,764
Accrued expenses		12,019		8,648
Accrued income taxes		44		56
Operating lease liabilities		1,428		1,393
Other current liabilities		2,308		3,765
Total current liabilities		45,679		46,268
Long-term borrowings		38,935		27,211
Accrued severance benefits, net		14,213		17,094
Non-current operating lease liabilities		1,018		1,823
Other non-current liabilities		4,412		10,123
Total liabilities		104,257		102,519
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,674,256 shares issued and 35,948,422 outstanding at September 30, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024		576		574
Additional paid-in capital		280,975		279,423
Retained earnings		222,931		244,576
Treasury stock, 21,725,834 shares at September 30, 2025 and 20,586,389 shares at December 31, 2024, respectively		(229,700)		(225,883)
Accumulated other comprehensive loss		(19,433)		(21,893)
Total stockholders’ equity		255,349		276,797
Total liabilities and stockholders’ equity	$	359,606	$	379,316

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, 2025		September 30, 2025		September 30, 2024
Cash flows from operating activities
Net loss	$	(13,090)	$	(21,645)	$	(38,031)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization		3,277		9,938		12,171
Provision for severance benefits		693		2,868		4,552
Loss (gain) on foreign currency, net		7,473		(10,612)		6,140
Provision (reversal) for inventory reserves		1,074		1,919		(1,615)
Stock-based compensation		123		1,615		4,093
Impairment charges		5,062		12,424		—
Deferred income tax assets		80		(569)		3,111
Other, net		(256)		220		552
Changes in operating assets and liabilities
Accounts receivable, net		(3,010)		(7,610)		3,560
Inventories		(2,152)		(7,131)		(2,365)
Other receivables		4,548		(1,287)		(1,030)
Prepaid expenses		704		5,325		5,645
Other current assets		(3,922)		(3,247)		1,155
Accounts payable		(1,918)		641		619
Other accounts payable		(1,831)		(6,803)		(10,197)
Accrued expenses		3,947		1,925		(1,339)
Accrued income taxes		(38)		(16)		(1,459)
Other current liabilities		223		(323)		(240)
Other non-current liabilities		(56)		(48)		(345)
Payment of severance benefits		(826)		(10,669)		(1,889)
Others, net		57		3,446		(1,077)
Net cash provided by (used in) operating activities		162		(29,639)		(17,989)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		—		2,237		627
Payment of hedge collateral		—		—		(612)
Proceeds from disposal of plant, property and equipment		554		554		—
Purchase of property, plant and equipment		(7,656)		(19,739)		(4,175)
Payment for intellectual property registration		(97)		(182)		(263)
Collection of guarantee deposits		1,938		4,274		1,153
Payment of guarantee deposits		(58)		(355)		(2,090)
Purchase of short-term financial instruments		—		—		(30,000)
Others, net		—		180		(37)
Net cash used in investing activities		(5,319)		(13,031)		(35,397)
Cash flows from financing activities
Proceeds from long-term borrowings		3,647		10,611		30,059
Acquisition of treasury stock		(320)		(4,340)		(9,507)
Repayment of financing related to water treatment facility arrangement		(116)		(341)		(357)
Repayment of principal portion of finance lease liabilities		(41)		(121)		(104)
Net cash provided by financing activities		3,170		5,809		20,091
Effect of exchange rates on cash and cash equivalents		(3,334)		6,256		(3,702)
Net decrease in cash and cash equivalents		(5,321)		(30,605)		(36,997)
Cash and cash equivalents
Beginning of the period		113,326		138,610		158,092
End of the period	$	108,005	$	108,005	$	121,095

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

	Three Months Ended						Nine Months Ended
	September 30, 2025		June 30, 2025⁽¹⁾		September 30, 2024⁽¹⁾		September 30, 2025		September 30, 2024⁽¹⁾
Operating loss	$	(11,538)	$	(6,598)	$	(4,487)	$	(23,414)	$	(19,145)
Adjustments:
Equity-based compensation expense		123		976		1,636		1,967		3,517
Early termination and other charges		3,994		846		—		4,840		—
Adjusted Operating Loss	$	(7,421)	$	(4,776)	$	(2,851)	$	(16,607)	$	(15,628)

_______________
(1)		We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

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

For the three months ended September 30, 2025, we recorded in our consolidated statement of operations $2,599 thousand in expenses of termination related charges in connection with the voluntary resignation program executed during the third quarter of 2025. For that same period, we also recorded $1,395 thousand in expenses of certain executive separation benefits.

For the three months ended June 30, 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefits.

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

	Three Months Ended						Nine Months Ended
	September 30, 2025		June 30, 2025⁽¹⁾		September 30, 2024⁽¹⁾		September 30, 2025		September 30, 2024⁽¹⁾
Income (Loss) from continuing operations	$	(10,609)	$	9,203	$	(3,921)	$	(5,457)	$	(19,608)
Adjustments:
Interest income		(1,255)		(1,322)		(1,939)		(4,117)		(6,214)
Interest expense		469		373		472		1,265		1,143
Income tax expense (benefit), net		(4,170)		(4,138)		6,117		(8,709)		2,267
Depreciation and amortization		3,204		3,237		3,609		9,561		10,987
EBITDA – continuing operations		(12,361)		7,353		4,338		(7,457)		(11,425)
Equity-based compensation expense		123		976		1,636		1,967		3,517
Foreign currency loss (gain), net		4,280		(10,797)		(5,247)		(6,112)		3,388
Derivative valuation loss (gain), net		—		80		52		51		(58)
Early termination and other charges		3,994		846		—		4,840		—
Adjusted EBITDA – continuing operations	$	(3,964)	$	(1,542)	$	779	$	(6,711)	$	(4,578)
Income (Loss) from continuing operations	$	(10,609)	$	9,203	$	(3,921)	$	(5,457)	$	(19,608)
Adjustments:
Equity-based compensation expense		123		976		1,636		1,967		3,517
Foreign currency loss (gain), net		4,280		(10,797)		(5,247)		(6,112)		3,388
Derivative valuation loss (gain), net		—		80		52		51		(58)
Early termination and other charges		3,994		846		—		4,840		—
Income tax effect on non-GAAP adjustments		1,822		(2,286)		(143)		(441)		(1,311)
Adjusted Loss – continuing operations	$	(390)	$	(1,978)	$	(7,623)	$	(5,152)	$	(14,072)
Adjusted Loss – continuing operations per common share—
– Basic	$	(0.01)	$	(0.05)	$	(0.20)	$	(0.14)	$	(0.37)
– Diluted	$	(0.01)	$	(0.05)	$	(0.20)	$	(0.14)	$	(0.37)
Weighted average number of shares – basic		35,934,406		36,083,703		37,468,849		36,298,491		38,060,682
Weighted average number of shares – diluted		35,934,406		36,083,703		37,468,849		36,298,491		38,060,682

_______________
(1)		We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

We present Adjusted EBITDA from continuing operations and Adjusted Loss from continuing operations as supplemental measures of our performance. We define Adjusted EBITDA from continuing operations for the periods indicated as EBITDA – continuing operations (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) Other charges. EBITDA – continuing operations for the periods indicated is defined as income (loss) from continuing operations before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization.

We prepare Adjusted Loss from continuing operations by adjusting income (loss) from continuing operations 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 Loss from continuing operations is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Loss from continuing operations for the periods as net income (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.

For the three months ended June 30, 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefits.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251103434550/en/

Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
mike@bishopir.com

Source: Magnachip Semiconductor Corporation

– Magnachip to leverage accumulated expertise in automotive IGBT technology via 10-year collaboration with Hyundai Mobis

SEOUL, South Korea – Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced it has concluded an agreement with Hyundai Mobis Company Limited (hereinafter “MOBIS”) regarding the use of high-performance Insulated Gate Bipolar Transistor (IGBT) technology, and plans to expand its business based on this technology. Hyundai Mobis is a global auto parts provider focused on delivering differentiated mobility solutions that combine software and hardware.

IGBTs are power semiconductors used in high-power systems that require both high voltage and high current. According to market research firm Omdia, the global IGBT market value exceeded $11 billion in 2024 and is projected to grow from$12.3 billion in 2025 to $16.9 billion by 2028.

IGBTs used in traction inverters targeted for hybrid electric vehicles and electric vehicles (EVs) are experiencing rapid market growth. Since the efficiency and reliability of IGBTs significantly impact inverter performance, only a few power industry market leaders can offer the stable mass-production capabilities required for high-voltage and high-current products that currently lead the market.

Recognizing the increasing importance of internalizing core power semiconductor technologies for traction systems, MOBIS and Magnachip have collaborated since 2015 on the development of IGBTs for traction inverters. Under this partnership, MOBIS has led the structural design, while Magnachip has contributed its expertise primarily in semiconductor process technology. Following system-level evaluation and validation, the two companies recently developed new IGBT products that meet the stringent requirements of EVs. MOBIS currently plans to begin mass production of inverters incorporating these IGBTs in 2026.

Furthermore, Magnachip is leveraging the jointly-developed design technology to drive further development and commercialization of its own IGBT products. As part of these efforts, the Company plans to launch a new series of industrial IGBTs in the first half of next year, in line with its strategy to strengthen technological competitiveness and solidify its position in the global power semiconductor market, with a focus on the industrial, AI, and renewable energy markets.

“This strategic partnership marks an important step in advancing our IGBT capabilities,” said Camillo Martino, CEO of Magnachip. “The development of our new seventh-generation IGBT product family significantly enhances our portfolio and positions us to compete more effectively in high-performance, premium markets. Magnachip is actively targeting high-value opportunities in industrial, AI and renewable energy applications, which we expect to represent a larger share of our product mix in the coming years.”

Power Solutions > Discrete IGBTs > 1200V

Automotive Solutions

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created thereby. Statements that are not historical or current facts, including statements about beliefs and expectations and statements are forward-looking statements. These forward-looking statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “will be,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe(s),” “intend,” “predict,” “potential,” “future,” “strategy,” “opportunity” and similar words or phrases or the negatives of these words or phrases. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including, but not limited to: the impact of changes in macroeconomic conditions, including those caused by or related to recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia-Ukraine and between Israel-Hamas and sustained military action and conflict in the Red Sea; 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 14, 2025, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on Magnachip’s website. These reports are available at www.magnachip.com or www.sec.gov. Forward-looking statements speak only as of the date they are made. 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 power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 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):

Mike Bishop

Bishop IR, LLC

Tel. +1-415-891-9633

mike@bishopir.com

USA media / industry analyst:

Mike Newsom

LouVan Communications, Inc.

Tel. +1-617-803-5385

mike.newsom@louvanpr.com

Korea / Asia media:

Kyeong Ah Cho

Magnachip Semiconductor

Tel. +82-2-6903-3179

pr@magnachip.com

In the Media

Magnachip to Expand Its Industrial IGBT Business Based on Advanced Traction Inverter IGBT Technology Jointly Developed in Strategic Partnership with Hyundai Mobis

– New Package Lineup Targets Premium Consumer Electronics and High-Power/High-Current Markets

– Additional SJ MOSFET TOLL products are planned to be released for AI Data Centers

Seoul, October 29, 2025 – Magnachip Semiconductor Corporation (NYSE: MX, “Magnachip”) today announced the release of two new 650V Super Junction MOSFET (SJ MOSFET) products, adopting the TO-Leadless (TOLL) package, that are designed to meet the high-power and high-current requirements of premium consumer electronics such as premium TVs, gaming monitors, AI laptop adaptors, and chargers.

Current Magnachip products with TOLL packaging, such as the 80V – 200V eXtreme Trench MOSFETs, use a 3-pin configuration. The new 650V SJ MOSFETs have a 4-pin Kelvin configuration, which minimizes the effects of parasitic inductance on the gate-source return path, thereby improving switching stability and overall power efficiency by reducing gate oscillation (Ringing).

As compared to a conventional D²PAK package, the 4-pin TOLL package delivers more than a 100% increase in current capability, a 24% reduction in footprint and a 48% reduction in height. Therefore, the 4-pin TOLL package is suitable for smaller PCB and high-power density applications, which demand high power efficiency and effective heat dissipation performance.

Hyuk Woo, CTO of Magnachip, commented: “Our new 650V SJ MOSFET TOLL products are designed to meet both PCB space-saving and high-performance requirements of slim form-factor applications. Magnachip will continue to expand its 600V TOLL package product lineup in the near future to support new-generation products for AI datacenters and high-power applications.”

Magnachip’s New TOLL Packaged 650V SJ MOSFETs

Product	V_DS [V]	*R_{DS(on), max}	Package	Applications
MMTB65R099RFRH	650V	99mΩ	TOLL	Premium TVs, gaming monitors, AI laptop adapters, and chargers, and more
MMTB65R130RFRH	650V	130mΩ	TOLL

*R_DS(on): the resistance measured between the drain and source when the MOSFET is turned on

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About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 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):

Mike Bishop

Bishop IR, LLC

Tel. +1-415-891-9633

mike@bishopir.com

USA media / industry analysts:

Mike Newsom

LouVan Communications, Inc.

Tel. +1-617-803-5385

mike.newsom@louvanpr.com

Korea / Asia media:

Kyeong Ah Cho

Magnachip semiconductor

Tel. +82-2-6903-3179

pr@magnachip.com

In the Media

Magnachip Launches 650V Super Junction TOLL Package Products with Integrated Kelvin Source

Author: 매그나칩