UPDATED. 2024-05-20 21:44 (월)
Magnachip to downsize workforce in restructuring
Magnachip to downsize workforce in restructuring
  • Noh Tae Min 기자
  • 승인 2023.03.23 10:35
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Sources say another sales attempt may be imminent
Image: Magnachip
Image: Magnachip

Magnachip is planning to downsize its workforce by 5% due to last year’s poor earnings and the overall downturn of the global chip market.

The chipmaker was offering voluntary retirement to up to 5% of its workforce, sources said, out of its total workforce of 900.

This is likely a precursor before a sale, they added. Magnachip declined to comment on the matter.

Magnachip was formed in 2004 when the non-memory business of SK Hynix split off.

The chipmaker sold its foundry business, now named Key Foundry, to SK Hynix in 2020.

Magnachip now makes OLED display driver IC without a fab and manufactures its own power management ICs.

Last year, the company recorded US$337 million in revenue, a drop of 28.8% from 2021.

At the same time, it turned to the red and recorded US$5.25 million annual operating loss last year.

This was from the dip in demand for display driver ICs due to global inflation.

Current difficulties in the worldwide chip market are expected to continue until at least the second quarter of this year.

Meanwhile, Magnachip attempted a sale to Chinese private equity fund Wise Road Capital in 2021 for US$.14 billion but the deal was scrapped to the opposition of the US government.

Last year, South Korean chip firm LX Semicon also attempted to buy Magnachip through JP Morgan but canceled due to the high price tag.

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