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

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

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

Related Articles

Magnachip Unveils a New 650V IGBT for Solar Inverters

Magnachip Commences Mass Production of Two New 650V SJ MOSFETs with a Slim Form Factor

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

-Board Continues to Explore Strategic Alternatives; CAPEX Plans to Be Cut by Over 50% Through 2027-

SEOUL, South Korea–(BUSINESS WIRE)–Aug. 11, 2025– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced that YJ Kim has agreed to step down as CEO and as a member of the Board of Directors, effective immediately. Camillo Martino, Chairman of the Board of Directors, has also been appointed Interim Chief Executive Officer, effective immediately.

Magnachip’s Interim CEO and Chairman Camillo Martino said, “YJ Kim became CEO during a turbulent period in the Company’s history, and has led the firm for the past decade. However, Magnachip now faces several strategic, operational and financial challenges as it transitions to become a pure play power semiconductor company, and this requires new leadership. On behalf of the Board of Directors, I thank YJ for his service and wish him well in his future endeavors.”

Mr. Martino commented, “I am fully committed as Interim CEO and will spend most of my time in South Korea to accelerate our transition to a pure-play power company, while also focusing intensely on achieving sustainable profitability and maximizing shareholder value. Among the first actions being taken in our plan is cutting capital expenditures by more than 50% over the next two-plus years as we prioritize capital allocation. As part of our capital allocation plans, it is important that we invest in our Gumi fab to support the growth of our new-generation power products that are critical to our financial recovery. New-generation products are expected to increase our market competitiveness and result in higher average selling prices and gross profit margins. Capital expenditures, which recently had been forecast to range between $65-70 million through 2027, now are forecast to be in the range of $30-35 million, but the total net cash outlay by Magnachip currently is expected to range between $12-13 million, with the remainder covered by our bank equipment loan facility.

“In addition, we will continue to review all other available cost reduction initiatives to align our spending consistent with our goal to achieve Adjusted EBITDA¹ breakeven as soon as possible. One of the right-sizing initiatives being undertaken is headcount reduction, primarily through shared corporate functions. We are currently targeting to achieve annual savings of $2-3 million in operating expenses, with a payback period of 1.5 years.”

In concluding comment, Mr. Martino said, “As part of Magnachip’s capital allocation process, the Board will review all strategic alternatives including, but not limited to, a potential sale of the Company. The Board and management share the frustration of shareholders regarding the performance of the Company, and we are determined to optimize capital returns to shareholders. I will work closely with our management team to execute our strategic and financial plans and our new-generation power product roadmap.”

YJ Kim said, “I wish to thank Magnachip’s employees for their dedication to the Company, and the Board of Directors for its support. It’s been an honor to lead Magnachip over the past 10 years.”

____________________

¹ Adjusted EBITDA is a non-GAAP financial measure. See the Company’s most recent earnings release for the fiscal quarter ended June 30, 2025 in the investor relations section of the Company’s website for its definition of Adjusted EBITDA, reconciliations of historical presentations to net income, and a description of how the Company uses it in evaluating operating performance.

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 Iran, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250811632706/en/

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

Source: Magnachip Semiconductor Corporation

Q2 Results Summary

Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) increased 8.1% year-over-year to $47.6 million and was above the mid-point of our guidance range of $45.0 to $49.0 million.
Consolidated gross profit margin from continuing operations of 20.4% was within our guidance range of 19.5% to 21.5%.
Repurchased approximately 0.7 million shares for an aggregate purchase price of $2.3 million.

Q2 2025 Highlights

Q2 was the fifth consecutive quarter of year-over-year growth from continuing operations primarily driven by Power Analog Solutions (PAS) growth in communications and computing applications, as well as strength in Power IC products.
PAS revenue from the communication applications market increased 46.7% year-over-year, representing 20% of PAS revenue, while computing applications market revenue grew 45.1% year-over year and represented 8% of PAS revenue.
Power IC (PIC) business increased 11.1% year-over-year in Q2 driven by strength for both TV-LED and OLED power ICs.
Launched 28 new-generation PAS products in the first half of 2025.
Had 71 design-wins in Q2, up 61% from the 44 wins achieved in the year ago quarter. The design-wins include both our new generation Gen 6 Super Junction products and low-voltage Gen 8 MOSFETs, as well as our prior generation medium-voltage and Super Junction products.

SEOUL, South Korea–(BUSINESS WIRE)–Jul. 31, 2025– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the second quarter 2025.

Y.J. Kim, Magnachip’s CEO said, “In Q2, Magnachip delivered our fifth consecutive quarter of year-over-year revenue growth from continuing operations, driven primarily by strong performances in our communications and computing applications businesses. The quarter also benefited from some pull-in activity by customers, which contributed to the overall strength of the results. In industrial applications, we continued to see solid demand across key end markets, including e-motors, LED lighting, and 5G battery management systems.”

Mr. Kim added, “Looking to the back half of the year, we face an uncertain environment due to tariffs and pricing pressures on older-generation products, particularly in China. As a result, we currently anticipate a softer second half of the year relative to our prior expectations, and we now forecast 2025 revenue from continuing operations to be flattish as compared to our prior outlook for mid-to-high single-digit growth.”

Mr. Kim added, “While headwinds are impacting our near-term outlook, we are being proactive and decisive by taking structural actions to optimize operational efficiency and we are accelerating the development of a full array of a new generation of feature-rich power products which we expect will command higher prices and margins to drive future growth and profitability. We remain firmly committed to our 3-3-3 strategy of achieving $300 million in revenue with 30% gross margin, although the exact timing will depend largely upon various macroeconomic factors.”

Q2 2025 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP⁽¹⁾
	Q2 2025		Q1 2025			Q/Q change				Q2 2024⁽¹⁾			Y/Y change
Consolidated Revenues	47,622			44,722			up	6.5	%		46,400			up	2.6	%
Power solutions business	47,622			44,722			up	6.5	%		44,064			up	8.1	%
Power Analog Solutions	42,261			39,857			up	6.0	%		39,240			up	7.7	%
Power IC	5,361			4,865			up	10.2	%		4,824			up	11.1	%
Transitional Fab 3 foundry services⁽²⁾	—			—			n/a	—			2,336			n/a	—
Consolidated Gross Profit Margin	20.4	%		20.9	%		down	0.5	%pts		21.1	%		down	0.7	%pts
Power solutions business	20.4	%		20.9	%		down	0.5	%pts		22.5	%		down	2.1	%pts
Power Analog Solutions	18.2	%		17.8	%		up	0.4	%pts		19.7	%		down	1.5	%pts
Power IC	37.4	%		46.5	%		down	9.1	%pts		45.5	%		down	8.1	%pts
Transitional Fab 3 foundry services⁽²⁾	—			—			n/a	—			(5.2)	%		n/a	—
Operating Loss	(7,438	)		(6,288	)		down	n/a			(5,723	)		down	n/a
Income (Loss) from continuing operations	8,486			(5,082	)		up	n/a			(2,208	)		up	n/a
Basic Earnings (Loss) per Common Share	0.24			(0.14	)		up	n/a			(0.06	)		up	n/a
Diluted Earnings (Loss) per Common Share	0.23			(0.14	)		up	n/a			(0.06	)		up	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽¹⁾⁽³⁾
	Q2 2025		Q1 2025			Q/Q change				Q2 2024⁽¹⁾			Y/Y change
Adjusted Operating Loss	(5,616	)		(5,420	)		down	n/a			(4,670	)		down	n/a
Adjusted EBITDA	(2,093	)		(2,073	)		down	n/a			(992	)		down	n/a
Adjusted Income (Loss)	(2,708	)		(3,815	)		up	n/a			2,560			down	n/a
Adjusted Income (Loss) per Common Share—Diluted	(0.08	)		(0.10	)		up	n/a			0.07			down	n/a

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.
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.
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.

Q3 and Full-year 2025 Financial Guidance

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

For Q3 2025:

Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $44 to $48 million, down 3.5% sequentially and down 13.2% year-over-year at the mid-point on an equivalent basis due to pull-ins in Q2 from the second half of the year as well as competitive pricing pressure on its older generation products. This compares with equivalent revenue of $47.6 million in Q2 2025 and $53.0 million in Q3 2024.
Consolidated gross profit margin from continuing operations to be in the range of 18.5% to 20.5%. This compares with equivalent gross profit margin of 20.4% in Q2 2025 and 22.0% in Q3 2024.

For the full-year 2025:

Consolidated revenue from continuing operations is now expected to be flattish as compared to our previous forecast of mid-to-high single digit growth year-over-year, due to a challenging macroeconomic environment related to tariff uncertainty and pricing pressure on older generation products in China. This compares with equivalent revenue of $185.8 million in 2024.
Consolidated gross profit margin from continuing operations between 19% to 20%, as compared to our previous forecast of 19.5% to 21.5%. The equivalent gross profit margin was 21.5% in 2024.

Q2 2025 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Thursday, July 31, 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/BIb2356d591003457bb5c262089f689a13

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 third 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, and 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. 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; 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 our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

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

	Three Months Ended			Six Months Ended
	June 30, 2025	March 31, 2025	June 30, 2024⁽¹⁾	June 30, 2025	June 30, 2024⁽¹⁾
Revenues:
Net sales – Power solutions business	$ 47,622	$ 44,722	$ 44,064	$ 92,344	$ 83,976
Net sales – Transitional Fab 3 foundry services	—	—	2,336	—	5,862
Total revenues	47,622	44,722	46,400	92,344	89,838
Cost of sales:
Cost of sales – Power solutions business	37,910	35,360	34,157	73,270	67,025
Cost of sales – Transitional Fab 3 foundry services	—	—	2,457	—	6,668
Total cost of sales	37,910	35,360	36,614	73,270	73,693
Gross profit	9,712	9,362	9,786	19,074	16,145
Gross profit as a percentage of Power solutions business net sales	20.4%	20.9%	22.5%	20.7%	20.2%
Gross profit as a percentage of total revenues	20.4%	20.9%	21.1%	20.7%	18.0%
Operating expenses:
Selling, general and administrative expenses	9,321	9,714	9,735	19,035	19,275
Research and development expenses	6,983	5,936	5,774	12,919	11,984
Other charges	846	—	—	846	—
Total operating expenses	17,150	15,650	15,509	32,800	31,259
Operating loss	(7,438)	(6,288)	(5,723)	(13,726)	(15,114)
Interest income	1,324	1,545	2,134	2,869	4,275
Interest expense	(402)	(449)	(487)	(851)	(672)
Foreign currency gain (loss), net	10,810	(405)	(3,625)	10,405	(8,613)
Other income	56	114	108	170	152
Income (Loss) from continuing operations before income tax benefit, net	4,350	(5,483)	(7,593)	(1,133)	(19,972)
Income tax benefit, net	(4,136)	(401)	(5,385)	(4,537)	(3,480)
Income (Loss) from continuing operations	8,486	(5,082)	(2,208)	3,404	(16,492)
Loss from discontinued operations, net of tax	(8,163)	(3,796)	(10,789)	(11,959)	(11,922)
Net income (loss)	$ 323	$ (8,878)	$ (12,997)	$ (8,555)	$ (28,414)
Basic earnings (loss) per common share—
Continuing operations	$ 0.24	$ (0.14)	$ (0.06 )	$ 0.09	$ (0.43)
Discontinuing operations	(0.23 )	(0.10)	(0.28 )	(0.32)	(0.31)
Total	$ 0.01	$ (0.24)	$ (0.34 )	$ (0.23)	$ (0.74)
Diluted earnings (loss) per common share—
Continuing operations	$ 0.23	$ (0.14)	$ (0.06 )	$ 0.09	$ (0.43)
Discontinuing operations	(0.22 )	(0.10)	(0.28 )	(0.32)	(0.31)
Total	$ 0.01	$ (0.24)	$ (0.34 )	$ (0.23)	$ (0.74)
Weighted average number of shares—
Basic	36,083,703	36,887,841	38,174,920	36,483,551	38,359,851
Diluted	36,768,647	36,887,841	38,174,920	37,209,622	38,359,851

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)

	June 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents		$ 113,326	$ 138,610
Accounts receivable, net		28,784	28,402
Inventories, net		37,571	30,535
Other receivables		8,329	4,444
Prepaid expenses		6,518	10,379
Hedge collateral		—	2,080
Other current assets		4,926	4,779
Total current assets		199,454	219,229
Property, plant and equipment, net		94,262	81,463
Operating lease right-of-use assets		2,958	3,107
Intangible assets, net		500	507
Long-term prepaid expenses		255	165
Deferred income taxes		57,298	52,889
Other non-current assets		15,804	21,956
Total assets		$ 370,531	$ 379,316
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 19,448	$ 21,642
Other accounts payable		11,900	10,764
Accrued expenses		8,429	8,648
Accrued income taxes		84	56
Operating lease liabilities		1,572	1,393
Other current liabilities		1,483	3,765
Total current liabilities		42,916	46,268
Long-term borrowings		36,508	27,211
Accrued severance benefits, net		14,248	17,094
Non-current operating lease liabilities		1,382	1,823
Other non-current liabilities		5,315	10,123
Total liabilities		100,369	102,519
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,581,275 shares issued and 35,954,038 outstanding at June 30, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024		575	574
Additional paid-in capital		280,853	279,423
Retained earnings		236,021	244,576
Treasury stock, 21,627,237 shares at June 30, 2025 and 20,586,389 shares at December 31, 2024, respectively		(229,381)	(225,883)
Accumulated other comprehensive loss		(17,906)	(21,893)
Total stockholders’ equity		270,162	276,797
Total liabilities and stockholders’ equity		$ 370,531	$ 379,316

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

	Three Months Ended	Six Months Ended
	June 30, 2025	June 30, 2025	June 30, 2024
Cash flows from operating activities
Net income (loss)	$ 323	$ (8,555)	$ (28,414)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization	3,388	6,661	8,115
Provision for severance benefits	661	2,175	2,970
Loss (gain) on foreign currency, net	(18,050)	(18,085)	16,848
Provision (reversal) for inventory reserves	(363)	845	(1,024)
Stock-based compensation	462	1,492	2,116
Impairment charges	7,362	7,362	—
Deferred income tax assets	(234)	(649)	3,158
Others, net	251	476	426
Changes in operating assets and liabilities
Accounts receivable, net	(5,235)	(4,600)	(235)
Inventories	(1,720)	(4,979)	(3,449)
Other receivables	(5,024)	(5,835)	601
Prepaid expenses	3,388	4,621	3,827
Other current assets	(295)	675	(2,931)
Accounts payable	17	2,559	1,944
Other accounts payable	(2,350)	(4,972)	(6,676)
Accrued expenses	(1,911)	(2,022)	(427)
Accrued income taxes	28	22	(17)
Other current liabilities	355	(546)	453
Other non-current liabilities	(346)	8	(246)
Payment of severance benefits	(9,518)	(9,843)	(1,362)
Others, net	3,679	3,389	(761)
Net cash used in operating activities	(25,132)	(29,801)	(5,084)
Cash flows from investing activities
Proceeds from settlement of hedge collateral	2,237	2,237	—
Payment of hedge collateral	—	—	(612)
Purchase of property, plant and equipment	(11,875)	(12,083)	(1,566)
Payment for intellectual property registration	(22)	(85)	(178)
Collection of guarantee deposits	2,315	2,336	1,138
Payment of guarantee deposits	(158)	(297)	(1,910)
Purchase of short-term financial instruments	—	—	(30,000)
Others, net	180	180	0
Net cash used in investing activities	(7,323)	(7,712)	(33,128 )
Cash flows from financing activities
Proceeds from long-term borrowings	6,964	6,964	30,059
Acquisition of treasury stock	(2,714)	(4,020 )	(6,859)
Repayment of financing related to water treatment facility arrangement	(114)	(225)	(238)
Repayment of principal portion of finance lease liabilities	(42)	(80)	(69)
Net cash provided by financing activities	4,094	2,639	22,893
Effect of exchange rates on cash and cash equivalents	9,033	9,590	(10,306)
Net decrease in cash and cash equivalents	(19,328)	(25,284)	(25,625)
Cash and cash equivalents
Beginning of the period	132,654	138,610	158,092
End of the period	$ 113,326	$ 113,326	$ 132,467

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										Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024⁽¹⁾				June 30, 2025				June 30, 2024⁽¹⁾
Operating loss– continuing operations	$	(7,438	)	$	(6,288	)		$	(5,723	)		$	(13,726	)	$	(15,114	)
Adjustments:
Equity-based compensation expense		976			868				1,053				1,844			1,881
Other charges		846			—				—				846			—
Adjusted Operating Loss– continuing operations	$	(5,616	)	$	(5,420	)		$	(4,670	)		$	(11,036	)	$	(13,233	)

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.

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

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

	Three Months Ended				Six Months Ended
	June 30, 2025	March 31, 2025	June 30, 2024⁽¹⁾		June 30, 2025	June 30, 2024⁽¹⁾
Income (Loss) from continuing operations	$ 8,486	$ (5,082)	$ (2,208)	$ 3,404			$ (16,492)
Adjustments:
Interest income	(1,324)	(1,545)	(2,134)	(2,869)			(4,275)
Interest expense	402	449	487	851			672
Income tax benefit, net	(4,136)	(401)	(5,385)	(4,537)			(3,480)
Depreciation and amortization	3,387	3,262	3,655	6,649			7,396
EBITDA – continuing operations	6,815	(3,317)	(5,585)	3,498			(16,179)
Equity-based compensation expense	976	868	1,053	1,844			1,881
Foreign currency loss (gain), net	(10,810)	405	3,625	(10,405)			8,613
Derivative valuation loss (gain), net	80	(29)	(85)	51			(110)
Other charges	846	—	—	846			—
Adjusted EBITDA – continuing operations	$ (2,093)	$ (2,073)	$ (992)	$ (4,166)			$ (5,795)
Income (Loss) from continuing operations	$ 8,486	$ (5,082)	$ (2,208)	$ 3,404			$ (16,492)
Adjustments:
Equity-based compensation expense	976	868	1,053	1,844			1,881
Foreign currency loss (gain), net	(10,810)	405	3,625	(10,405)			8,613
Derivative valuation loss (gain), net	80	(29)	(85)	51			(110)
Other charges	846	—	—	846			—
Income tax effect on non-GAAP adjustments	(2,286)	23	175	(2,263)			(1,168)
Adjusted Income (Loss) – continuing operations	$ (2,708)	$ (3,815)	$ 2,560	$ (6,523)			$ (7,276)
Adjusted Income (Loss) – continuing operations per common share—
– Basic	$ (0.08)	$ (0.10)	$ 0.07	$ (0.18)			$ (0.19)
– Diluted	$ (0.08)	$ (0.10)	$ 0.07	$ (0.18)			$ (0.19)
Weighted average number of shares – basic	36,083,703	36,887,841	38,174,920	36,483,551			38,359,851
Weighted average number of shares – diluted	36,083,703	36,887,841	38,529,789	36,483,551			38,359,851

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 Income (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 benefit, net and depreciation and amortization.

We prepare Adjusted Income (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 Income (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 Income (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) Other charges and (v) Income tax effect on non-GAAP adjustments.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20250731595720/en/

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

Source: Magnachip Semiconductor Corporation

SEOUL, South Korea–(BUSINESS WIRE)–Jul. 10, 2025– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the second quarter ended June 30, 2025, on Thursday, July 31, 2025, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

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

Online registration: https://register-conf.media-server.com/register/BIb2356d591003457bb5c262089f689a13

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

About Magnachip Semiconductor Corporation

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250710578709/en/

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

Source: Magnachip Semiconductor Corporation

SEOUL, South Korea–(BUSINESS WIRE)–Jun. 4, 2025– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced that the Board of Directors of the Company has approved an initiative intended to enhance independent Board oversight and feedback to management in conjunction with the Company’s previously announced transition to a pure-play Power business, implementation of management’s 3-3-3 strategy, and launch of new-generation Power discrete products. The 3-3-3 strategy aims for Magnachip to achieve $300 million in annual revenue and a 30% gross margin over a three-year horizon to align Magnachip’s product roadmap, R&D investments, and operational priorities to drive structural improvements and sustainable profitability.

The Company’s Chairman, Camillo Martino, has agreed, on behalf of the Board to spend additional time on-site at the Company’s headquarters in Korea to meet with management and report back to the full Board during the implementation phase of its 3-3-3 strategy to achieve profitable growth and to maximize shareholder value. The Board expects Mr. Martino to spend several days each month in Korea for at least the remainder of 2025 in order to more closely oversee and report regularly to the Board’s other independent directors on the Company’s progress in its important strategy milestones, as well as to provide more timely feedback to management on behalf of the Board.

Camillo Martino, Chairman of Magnachip, said, “I look forward to spending more time on the ground with our management team in Korea to assist the full Board in its oversight responsibilities during the Company’s implementation of its 3-3-3 strategy as a pure-play Power business. Spending additional time on-site with the management team will allow more streamlined and timely communication with the rest of the independent Board members as Magnachip management implements its strategy to deliver new-generation Power discrete and Power IC products while also achieving its financial targets.”

YJ Kim, Magnachip’s CEO, said, “We welcome the additional support from Camillo on behalf of the Board, and look forward to continuing to provide timely feedback to the rest of the Board as we pursue these new exciting opportunities for Magnachip.”

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. All forward-looking statements included or incorporated by reference in this release, including expectations about estimated historical or future operating results and financial performance, outlook and business plans, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China on Magnachip’s future revenue and future operating results, and the timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this press release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S., China and other countries, including the impact of tariff actions; 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250604968188/en/

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

Source: Magnachip Semiconductor Corporation

Q1 Results Summary

Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) of $44.7 million was in line with the mid-point of our guidance range of $42.0 to $47.0 million. Excluding Transitional Foundry Services, revenue from continuing operations increased 12.1% year-over-year.
Consolidated gross profit margin from continuing operations of 20.9% was above the high-end of our guidance range of 18.5% to 20.5%.
Repurchased approximately 0.3 million shares for an aggregate purchase price of $1.1 million during the quarter and ended Q1 with cash of $132.7 million.
Announced the shutdown of Display business, which is now classified as discontinued operations from Q1 2025.

Q1 2025 Highlights

Q1 was the fourth consecutive quarter of year-over-year growth from continuing operations primarily driven by Power Analog Solutions (PAS) growth in Communications, as well as strength in Power IC.
PAS revenue from the Communication market was up 64% year-over-year.
Power IC (PIC) business increased 44.1% year-over-year in Q1 driven by strength for both TV-LED and OLED power ICs.
Released 27 new-generation PAS products that are ready for commercial sampling.
We had 50 design-wins in Q1, up 13.6% from the 44 wins achieved in the year ago quarter. The design-wins include both our new generation Gen 6 Super Junction products and low-voltage Gen 8 MOSFETs, as well as our prior generation medium-voltage and Super Junction products.

SEOUL, South Korea–(BUSINESS WIRE)–May 12, 2025– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the first quarter 2025.

YJ Kim, Magnachip’s CEO, said, “We delivered our fourth consecutive quarter of year-over-year growth from continuing operations, fueled by strong design-wins and momentum in Power Analog Solutions (PAS) and Power IC (PIC). In Q1 alone, we released 27 new-generation PAS products that are fully qualified and ready for commercial sampling, with design-wins spanning the Industrial, Automotive, Consumer, and Communication markets. We currently plan to launch a total of more than 40 new-generation PAS products in 2025 and approximately 55 more in 2026. These innovations not only open new revenue opportunities but are also expected to drive higher gross margins over time. While we remain mindful of geopolitical and macroeconomic uncertainties, we currently forecast sequential and year-over-year growth in revenue for continuing operations of PAS and PIC businesses in Q2.”

YJ Kim added, “Through our 3-3-3 strategy—targeting $300 million in annual revenue, a 30% gross margin, and a three-year execution horizon—we are aligning our product roadmap, R&D investments, and operational priorities to drive structural improvements and sustainable profitability.”

Shinyoung Park, Magnachip’s CFO, said, “In Q1, Magnachip achieved 12.1% year-over-year revenue growth from continuing operations and increased gross margin to 20.9%, up from 17.6% a year ago on an equivalent basis and exceeding the high-end of guidance. We expect to realize significant cost savings from the shutdown of our Display business, resulting in a 30% to 35% reduction in annualized operating expenses. Our balance sheet remains strong, and we are focused on prudent capital allocation as we transition to a more efficient, growth-oriented business model. This structural shift is creating a foundation for sustainable profitability and positions us to create long-term value for shareholders.”

Q1 2025 Financial Highlights


	In thousands of U.S. dollars, except share data
	GAAP⁽¹⁾
	Q1 2025		Q4 2024⁽¹⁾			Q/Q change				Q1 2024⁽¹⁾			Y/Y change
Consolidated Revenues	44,722			51,153			down	12.6	%		43,438			up	3.0	%
Power solutions business	44,722			48,858			down	8.5	%		39,912			up	12.1	%
Power Analog Solutions	39,857			43,455			down	8.3	%		36,535			up	9.1	%
Power IC	4,865			5,403			down	10.0	%		3,377			up	44.1	%
Transitional Fab 3 foundry services⁽²⁾	—			2,295			n/a	—			3,526			n/a	—
Consolidated Gross Profit Margin	20.9	%		21.7	%		down	0.8	%pts		14.6	%		up	6.3	%pts
Power solutions business	20.9	%		23.2	%		down	2.3	%pts		17.6	%		up	3.3	%pts
Power Analog Solutions	17.8	%		20.5	%		down	2.7	%pts		15.4	%		up	2.4	%pts
Power IC	46.5	%		44.9	%		up	1.6	%pts		41.8	%		up	4.7	%pts
Transitional Fab 3 foundry services⁽²⁾	—			(11.0)	%		n/a	—			(19.4)	%		n/a	—
Operating Loss	(6,288	)		(7,837	)		up	n/a			(9,391	)		up	n/a
Loss from continuing operations	(5,082	)		(8,732	)		up	n/a			(14,284	)		up	n/a
Basic Loss per Common Share	(0.14	)		(0.24	)		up	n/a			(0.37	)		up	n/a
Diluted Loss per Common Share	(0.14	)		(0.24	)		up	n/a			(0.37	)		up	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽¹⁾⁽³⁾
	Q1 2025		Q4 202⁽¹⁾			Q/Q change				Q1 2024⁽¹⁾			Y/Y change
Adjusted Operating Loss	(5,420	)		(4,468	)		down	n/a			(8,563	)		up	n/a
Adjusted EBITDA	(2,073	)		(466	)		down	n/a			(4,803	)		up	n/a
Adjusted Income (Loss)	(3,815	)		4,634			down	n/a			(9,836	)		up	n/a
Adjusted Earnings (Loss) per Common Share—Diluted	(0.10	)		0.12			down	n/a			(0.26	)		up	n/a

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.
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.
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 and Full-year 2025 Financial Guidance

Beginning Q1 2025, the Company has become a pure-play Power company, with the display business classified as discontinued operations and reported separately from continuing operations, which will include PAS and Power IC business lines. While actual results may vary, Magnachip currently expects the following:

For Q2 2025:

Consolidated revenue from continuing operations (which includes PAS and Power IC businesses) to be in the range of $45 to $49 million, up 5.2% sequentially and up 6.6% year-over-year at the mid-point. This compares with equivalent revenue of $44.7 million in Q1 2025 and $44.1 million in Q2 2024.
Consolidated gross profit margin from continuing operations to be in the range of 19.5% to 21.5%. This compares with equivalent gross profit margin of 20.9% in Q1 2025 and 22.5% in Q2 2024.

For the full-year 2025, we currently reiterate

Consolidated revenue from continuing operations to grow mid-to-high single digit year-over-year as compared with equivalent revenue of $185.8 million in 2024.
Consolidated gross profit margin from continuing operations between 19.5% to 21.5%, reflecting the fact that we have completed the wind down of Transitional Foundry Services and new generation power products will just begin production in the second half 2025. The equivalent gross profit margin was 21.5% in 2024.

Q1 2025 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Monday, May 12, 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/BIeaa8b9af1cc64fa4a8f5e1951afc70ab

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 second 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, sustained military action and conflict in the Red Sea, and 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. 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 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 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
	March 31,				December 31,				March 31,
		2025				2024⁽¹⁾				2024⁽¹⁾
Revenues:
Net sales – Power solutions business		$	44,722			$	48,858				$	39,912
Net sales – Transitional Fab 3 foundry services			—				2,295					3,526
Total revenues			44,722				51,153					43,438
Cost of sales:
Cost of sales – Power solutions business			35,360				37,530					32,868
Cost of sales – Transitional Fab 3 foundry services			—				2,547					4,211
Total cost of sales			35,360				40,077					37,079
Gross profit			9,362				11,076					6,359
Gross profit as a percentage of Power solutions business net sales			20.9	%			23.2	%				17.6	%
Gross profit as a percentage of total revenues			20.9	%			21.7	%				14.6	%
Operating expenses:
Selling, general and administrative expenses			9,714				10,388					9,540
Research and development expenses			5,936				6,936					6,210
Other charges			—				1,589					—
Total operating expenses			15,650				18,913					15,750
Operating loss			(6,288	)			(7,837	)				(9,391	)
Interest income			1,545	)			2,143					2,141	)
Interest expense			(449	)			(474	)				(185	)
Foreign currency loss, net			(405	)			(13,265	)				(4,988	)
Other income, net			114				364					44
Loss from continuing operations before income tax expense (benefit)			(5,483	)			(19,069	)				(12,379	)
Income tax expense (benefit), net			(401	)			(10,337	)				1,905
Loss from continuing operations			(5,082	)			(8,732	)				(14,284	)
Loss from discontinued operations, net of tax			(3,796	)			(7,545	)				(1,133	)
Net loss		$	(8,878	)		$	(16,277	)			$	(15,417	)
Basic loss per common share—
Continuing operations		$	(0.14	)		$	(0.24	)			$	(0.37	)
Discontinuing operations			(0.10	)			(0.20	)				(0.03	)
Total		$	(0.24	)		$	(0.44	)			$	(0.40	)
Diluted loss per common share—
Continuing operations		$	(0.14	)		$	(0.24	)			$	(0.37	)
Discontinuing operations			(0.10	)			(0.20	)				(0.03	)
Total		$	(0.24	)		$	(0.44	)			$	(0.40	)
Weighted average number of shares—
Basic			36,887,841				36,921,300					38,544,781
Diluted			36,887,841				36,921,300					38,544,781

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)

	March 31, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents		$ 132,654		$ 138,610
Accounts receivable, net		28,270		28,402
Inventories, net		32,633		30,535
Other receivables		5,229		4,444
Prepaid expenses		10,591		10,379
Hedge collateral		2,080		2,080
Other current assets		4,017		4,779
Total current assets		215,474		219,229
Property, plant and equipment, net		80,289		81,463
Operating lease right-of-use assets		3,602		3,107
Intangible assets, net		500		507
Long-term prepaid expenses, net		177		165
Deferred income taxes		53,435		52,889
Other non-current assets		20,390		21,956
Total assets		$ 373,867		$ 379,316
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 24,483		$ 21,642
Other accounts payable		10,522		10,764
Accrued expenses		8,796		8,648
Accrued income taxes		52		56
Operating lease liabilities		1,693		1,393
Other current liabilities		2,241		3,765
Total current liabilities		47,787		46,268
Long-term borrowing		27,276		27,211
Accrued severance benefits, net		18,041		17,094
Non-current operating lease liabilities		1,881		1,823
Other non-current liabilities		9,681		10,123
Total liabilities		104,666		102,519
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,571,469 shares issued and 36,675,789 outstanding at March 31, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024		575		574
Additional paid-in capital		280,452		279,423
Retained earnings		235,698		244,576
Treasury stock, 20,895,680 shares at March 31, 2025 and 20,586,389 shares at December 31, 2024, respectively		(227,047)		(225,883)
Accumulated other comprehensive loss		(20,477)		(21,893)
Total stockholders’ equity		269,201		276,797
Total liabilities and stockholders’ equity		$ 373,867		$ 379,316

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

	Three Months Ended
	March 31, 2025	March 31, 2024
Cash flows from operating activities
Net loss	$ (8,878)	$ (15,417)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	3,273	4,099
Provision for severance benefits	1,514	1,405
Loss (gain) on foreign currency, net	(35)	10,226
Provision (reversal) for inventory reserves	1,208	(947)
Stock-based compensation	1,030	900
Deferred income tax assets	(415)	1,313
Other, net	225	263
Changes in operating assets and liabilities
Accounts receivable, net	635	1,401
Inventories	(3,259)	801
Other receivables	(811)	(385)
Other current assets	970	331
Prepaid expenses	1,233	905
Accounts payable	2,542	563
Other accounts payable	(2,622)	(5,256)
Accrued expenses	(111)	(2,045)
Accrued income taxes	(6)	167
Other current liabilities	(901)	(387)
Other non-current liabilities	354	(624)
Payment of severance benefits	(325)	(884)
Other, net	(290)	(401)
Net cash used in operating activities	(4,669)	(3,972)
Cash flows from investing activities
Purchase of property, plant and equipment	(208 )	(668 )
Payment for intellectual property registration	(63 )	(60 )
Collection of guarantee deposits	21	1,133
Payment of guarantee deposits	(139)	(1,874)
Other, net	—	1
Net cash used in investing activities	(389 )	(1,468 )
Cash flows from financing activities
Proceeds from long-term borrowing	—	30,059
Acquisition of treasury stock	(1,306 )	(4,659 )
Repayment of financing related to water treatment facility arrangement	(111)	(121)
Repayment of principal portion of finance lease liabilities	(38 )	(35 )
Net cash provided by (used in) financing activities	(1,455)	25,244
Effect of exchange rates on cash and cash equivalents	557	(6,294 )
Net increase (decrease) in cash and cash equivalents	(5,956)	13,510
Cash and cash equivalents
Beginning of the period	138,610	158,092
End of the period	$ 132,654	$ 171,602

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
	March 31,			December 31,			March 31,
	2025			2024⁽¹⁾			2024⁽¹⁾
Operating loss– continuing operations		$	(6,288)		$	(7,837)		$	(9,391)
Adjustments:
Equity-based compensation expense			868			1,780			828
Other charges			—			1,589			—
Adjusted Operating Loss– continuing operations		$	(5,420)		$	(4,468)		$	(8,563)

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.

For the three months ended December 31, 2024, we recorded in our consolidated statement of operations $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits.

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

		Three Months Ended
	March 31,				December 31,				March 31,
	2025				2024⁽¹⁾				2024⁽¹⁾
Loss from continuing operations		$	(5,082	)		$	(8,732	)		$	(14,284	)
Adjustments:
Interest income			(1,545	)			(2,143	)			(2,141	)
Interest expense			449				474				185
Income tax expense (benefit), net			(401	)			(10,337	)			1,905
Depreciation and amortization			3,262				3,657				3,741
EBITDA – continuing operations			(3,317	)			(17,081	)			(10,594	)
Equity-based compensation expense			868				1,780				828
Foreign currency loss, net			405				13,265				4,988
Derivative valuation gain, net			(29)				(19	)			(25)
Other charges			—				1,589				—
Adjusted EBITDA – continuing operations		$	(2,073	)		$	(466	)		$	(4,803	)
Loss from continuing operations		$	(5,082	)		$	(8,732	)		$	(14,284	)
Adjustments:
Equity-based compensation expense			868				1,780				828
Foreign currency loss, net			405				13,265				4,988
Derivative valuation gain, net			(29)				(19)				(25)
Other charges			—				1,589				—
Income tax effect on non-GAAP adjustments			23				(3,249	)			(1,343	)
Adjusted Income (Loss) – continuing operations		$	(3,815	)		$	4,634			$	(9,836	)
Adjusted Income (Loss) – continuing operations per common share—
– Basic		$	(0.10	)		$	0.13			$	(0.26	)
– Diluted		$	(0.10	)		$	0.12			$	(0.26	)
Weighted average number of shares – basic			36,887,841				36,921,300				38,544,781
Weighted average number of shares – diluted			36,887,841				37,738,210				38,544,781

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 Income (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, net, (iii) Derivative valuation gain, net and (iv) Other charges. EBITDA – continuing operations for the periods indicated is defined as loss from continuing operations before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization.

We prepare Adjusted Income (Loss) from continuing operations by adjusting 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 Income (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 Income (Loss) from continuing operations for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation gain, net, (iv) Other charges and (v) Income tax effect on non-GAAP adjustments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250512818670/en/

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

Source: Magnachip Semiconductor Corporation

Company to Become a Pure-Play Power Business To Drive Profitable Growth and Maximize Shareholder Value

-Company will continue to evaluate opportunities to monetize Display assets-

SEOUL, South Korea–(BUSINESS WIRE)–Apr. 8, 2025– Magnachip Semiconductor Corporation (NYSE:MX) (“Magnachip” or the “Company”) today announced that after a thorough review its Board of Directors unanimously approved a plan to shut down the Company’s Display business by the end of the second quarter of 2025. The Company had previously announced its intention to explore all strategic options for the Display business and to classify the Display business as discontinued operations when it reports Q1 results in May in order to focus as a pure-play Power discrete and Power IC company and to achieve profitable revenue growth and maximize shareholder value. However, the Company has not been able to consummate a transaction following several months of discussions with several interested parties on terms that the Company’s Board of Directors believed were in the best interests of the Company and its stockholders. Therefore, the Company has already begun notifying its customers impacted by this decision.

Shutting down the Display business will include the liquidation of Magnachip Mixed-Signal, Ltd. (“MMS”), the Company’s wholly owned subsidiary that operates the discontinued Display business. The Company will retain its Power IC business which had previously resided in MMS and now operates alongside the Company’s Power discrete business in Magnachip Semiconductor, Ltd. (“Magnachip Korea”), the Company’s wholly owned subsidiary that comprises the Power solutions business. Together, the Power IC and Power discrete businesses represent Magnachip’s going-forward continuing operations. The Company will maintain a small team to continue to support customers with respect to “end of life” (“EOL”) products. While Magnachip expects to shut down the Display business by the end of Q2, Magnachip will continue to evaluate opportunities to monetize Display assets.

Magnachip CEO YJ Kim said, “It was an extremely difficult decision to shut down our Display business when considering both our valued customers and employees. However, our first priority is to ensure Magnachip’s long-term success by achieving consistent profitability and earnings growth in order to maximize shareholder value. Navigating the unpredictable macroeconomic headwinds will likely pose significant challenges to all companies over the coming few quarters. At the same time, our strategic pivot to focus exclusively on Power discrete and Power IC businesses is designed to position the Company for a return to profitability. We aim to attain a quarterly Adjusted EBITDA* break-even from continuing operations by the end of this year. We also believe that this will pave the way for positive adjusted operating income* in 2026 and positive adjusted free cash flow* in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy. Magnachip’s Power discrete and Power IC businesses generated $185 million in revenue in 2024, up 13% from 2023, and the Company expects mid-to-high-single digit revenue growth in 2025.”

Magnachip’s Chairman of the Board Camillo Martino commented, “Having concluded an in-depth review of our businesses, Magnachip’s Board of Directors made a unanimous decision to shut down the Display business in order to focus the Company on the revenue growth and profit potential of the Power discrete and Power IC businesses. We believe the actions announced today demonstrate the Board’s firm commitment to put Magnachip on the path to achieve profitable revenue growth, restore the Company back to profitability and to enhance shareholder value.”

The actions that are being undertaken by the Company in connection with the liquidation process are expected to result in a 30% to 35% reduction in annualized operating expenditures (excluding equity compensation charges) as compared with 2024. In addition, the Company will provide limited support for remaining customer obligations including the sale of EOL Display products, which will be conducted by Magnachip Korea.

* Non-GAAP measure. Please see “Use of Non-GAAP Financial Measures” below.

The Company is unable at this time to provide an estimated amount or range of estimated amounts to be incurred or the future cash expenditures or charges that it will incur in connection with the shutdown of the Company’s Display business and the liquidation of MMS. The Company expects to disclose such costs promptly after the Company makes a determination of an estimate or range of estimates of the costs that are expected to be incurred in connection with the shutdown of the Display business and the liquidation of MMS.

USE OF NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA, adjusted operating income and adjusted free cash flow are considered Non-GAAP measures. 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 can be found in our most recent earnings press release on the investor relations page of our website at https://investors.magnachip.com. We define adjusted free cash flow as net cash provided by operating activities, adjusted for net foreign currency transaction gain or loss, less capital expenditures.

Safe Harbor for Forward-Looking Statements

Information in this presentation 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. All forward-looking statements included or incorporated by reference in this press release, including expectations about future operating results and financial performance, outlook and business plans, including longer term revenue growth and Adjusted EBITDA, adjusted operating income and adjusted free cash flow targets, 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, sustained military action and conflict in the Red Sea, and 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 timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this press 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; the geopolitical conflicts including between Russia-Ukraine and between Israel-Hamas, 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 our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250408519840/en/

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

Source: Magnachip Semiconductor Corporation

– Introducing 25 new Gen6 SJ MOSFETs with improved specific on-resistance (R_SP), faster switching speeds and enhanced electrostatic discharge (ESD) protection

SEOUL, South Korea, March 12, 2025 – Magnachip Semiconductor Corporation (“Magnachip” or “Company”) (NYSE: MX) announced a significant expansion of its product lineup with the launch of 25 new 6^th-generation (Gen6) SJ MOSFETs (Super Junction Metal-Oxide-Semiconductor Field-Effect Transistors).

The switching speeds of the newly developed Gen6 SJ MOSFETs have been improved by approximately 23%, reducing the R_SP of applications by about 40% compared to the previous generation, thereby enhancing the Figure of Merit by 40%.

Additionally, a Zener diode is embedded between the gate and source to enhance reliability and protect the SJ MOSFETs from ESD-induced damage. The chip sizes of the new products are also approximately 30% smaller than their predecessor product.

The new product lineup consists of 600V, 650V, and 700V voltage ratings and is available in 7 package types, including TO220, TO220FT, SOT223, PDFN88, and D²PAK, with high-demand options, such as DPAK and TO220F.

As a result, these SJ MOSFETs are well-suited for various applications requiring high power efficiency, including AI TVs, smart refrigerators, AI laptop adapters and power supplies. According to market research firm Omdia, the global smart home device market is projected to grow by 20% annually from 2025 to 2028.

“With the successful launch of 25 new Gen6 SJ MOSFETs integrating Magnachip’s latest technology, we have further strengthened our product lineup to meet our customers’ evolving technical requirements,” said YJ Kim, CEO of Magnachip. “By delivering optimal power solutions for the AI, industrial applications and smart home appliances, we aim to contribute to the growth and success of our customers in these sectors, and further advance our technology and market leadership as we transition to a pure-play Power company.”

Related Links

Power Solutions > SJ MOSFETs > 600V

Power Solutions > SJ MOSFETs > 650V

Power Solutions > SJ MOSFETs > 700V

Related Articles

Magnachip Commences Mass Production of Two New 650V SJ MOSFETs with a Slim Form Factor

Magnachip Introduces 6th-Generation 600V SJ MOSFET Developed with Cutting-Edge Microfabrication Technology

Magnachip Debuts New Family of 600V SJ MOSFET Products Featuring Fast Recovery Body Diodes

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with 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):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@blueshirtgroup.co

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

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

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

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