Magnachip将关闭显示器业务

Core Viewpoint - Magnachip Semiconductor Corp. has unanimously approved a plan to shut down its display business by the end of Q2 2025, focusing instead on becoming a pure power discrete and power IC company to maximize shareholder value [1][3]. Group 1: Business Strategy - The decision to close the display business follows months of discussions with potential buyers, which ultimately did not result in a transaction that aligned with the company's best interests [1][2]. - The closure will involve liquidating Magnachip Mixed-Signal Ltd (MMS), the wholly-owned subsidiary responsible for the display operations, while retaining the power IC business [2]. - The company aims to achieve breakeven adjusted EBITDA for its ongoing operations by the end of this year, with a long-term goal of reaching $300 million in annual revenue and a 30% gross margin by 2026 [3]. Group 2: Financial Projections - Magnachip expects revenue from its power discrete and power IC business to reach $185 million in 2024, representing a 13% increase from 2023, with mid-to-high single-digit growth anticipated for 2025 [3]. - The actions taken during the liquidation process are projected to reduce annual operating expenses (excluding stock-based compensation) by 30% to 35% compared to 2024 [3].