MagnaChip exploring all strategic options for its Display business

Magnachip (MX) Semiconductor announced that after a thorough review, its Board of Directors and management team have made the decision to become a pure-play Power company to drive revenue growth, improve profitability, and maximize shareholder value. As a result, the company is exploring all strategic options for its Display business, which will be classified as discontinued operations when the company reports Q1 results in May. The company’s strategic options include a sale, merger, joint venture, licensing, and wind-down. It expects to complete this strategic process and exit the Display business by the end of Q2 this year. Magnachip CEO YJ Kim said, “It was an extremely difficult decision when considering both our valued customers and employees. However, our priority is to maximize shareholder value by achieving consistent profitability and earnings growth. By focusing on the Power business, we have a goal to achieve quarterly Adjusted EBITDA break-even by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. Each of these goals helps reach our 3-3-3 Strategy of $300 million annual revenue run-rate with a 30% gross margin in three years.”