MAGNACHIP’S BOLD Move: Shift to Power Business Promises Big Profits
— Magnachip Semiconductor Corporation is making a bold shift to focus solely on its Power business. This strategic move, decided by the Board and management, aims to boost revenue growth and increase shareholder value.
The company plans to phase out its Display segment, classifying it as discontinued in the next Q1 results. Options like selling or merging this segment are on the table. The goal is clear: ensure steady profits and keep shareholders happy.
Magnachip aims for quarterly break-even by Q4 2025 and expects positive operating income by 2026. By 2027, they foresee positive free cash flow. The Power business will target stable markets with long product cycles, unlike the unpredictable smartphone market of their Display segment.