Magnachip Celebrates the Grand Opening of Magnachip Technology Company in China

Rhea-AI Summary

Magnachip Semiconductor (NYSE: MX) has officially opened the Magnachip Technology Company (MTC) in Hefei, China, to advance its display driver IC and power IC businesses in the region. Established on December 20, 2023, MTC aims to leverage Hefei's robust IC industrial cluster and talent pool. The new subsidiary will focus on OLED Display Driver IC and power management IC capabilities to meet the demands of the Chinese consumer market.

Additionally, MTC plans to set up branch offices in Beijing, Chengdu, and Shenzhen to enhance communication and market responsiveness. With over 40 years of expertise and around 1,100 registered patents, Magnachip aims to solidify its presence and commitment to long-term growth in China.

Positive

• Magnachip opens a new subsidiary in Hefei, China, enhancing its presence in a key market.
• The new office will leverage Hefei's established IC industrial cluster and talent pool.
• Plans for branch offices in Beijing, Chengdu, and Shenzhen to improve market responsiveness.
• Magnachip boasts 40+ years of operational expertise and around 1,100 patents.
• Focus on OLED Display Driver IC and power management IC capabilities to meet local market demands.

Negative

• Setting up new offices may lead to increased operational expenses.
• Operational and regulatory challenges in a new market could pose risks.
• Potential for stiff competition in China’s robust IC industry.

SEOUL, South Korea--(BUSINESS WIRE)-- Magnachip Semiconductor Corporation (“Magnachip” or the “Company”) (NYSE: MX) celebrated the opening ceremony of Magnachip Technology Company, Ltd. ("MTC") today at its headquarters located in Hefei, China. MTC is a subsidiary of Magnachip, established on December 20, 2023, to expand the Company’s display driver IC and power IC businesses in China.

The ceremony was attended by local government officials and Company customers and business partners. This significant event underscores Magnachip's commitment to establishing a strong foothold in China and fostering sustainable growth in the Chinese market.

Hefei is renowned for its burgeoning IC industrial cluster and has the goal of becoming the "IC Capital of China.” By positioning MTC within this dynamic ecosystem, Magnachip aims to leverage Hefei's robust infrastructure and tap into its rich talent pool. In addition, MTC intends to establish branch offices in Beijing, Chengdu and Shenzhen, which will further strengthen the Company’s China presence by streamlining communication and facilitating seamless market responsiveness to allow the Company to provide prompt customer support.

With over 40 years of operational expertise, Magnachip boasts a vast portfolio of approximately 1,100 registered patents and pending applications, coupled with extensive engineering prowess in power ICs, OLED display driver ICs and power management ICs widely used for communication, Internet of Things, consumer, computing, industrial, and automotive applications. MTC will focus on harnessing Magnachip’s OLED Display Driver IC and power management IC capabilities to serve local China customers to meet the demands of the consumer market in China.

“Our decision to establish an operating subsidiary in mainland China marks another significant milestone in our global growth journey, alongside our Korean headquarters and our presence in Europe and Asia including Japan and Taiwan,” said YJ Kim, CEO of Magnachip. “By establishing a local presence, we are better positioned to understand and fulfill the needs of the Chinese consumer market, while reaffirming our commitment to delivering long-term value for our shareholders.”

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 more than 40 years of operating history, owns a portfolio of approximately 1,100 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/20240515479215/en/

U.S. (investor relations):

Steven C. Pelayo, CFA

The Blueshirt Group

Tel. +1(360) 808-5154

steven@blueshirtgroup.co

U.S. media / industry analyst:

Mike Newsom

LouVan Communications, Inc.

Tel. +1-617-803-5385

mike.newsom@louvanpr.com

Korea / Asia media:

Min A Kim

Senior Manager of Public Relations

Tel. +82-2-6903-3211

mina3.kim@magnachip.com

Source: Magnachip Semiconductor Corporation

FAQ

What is the significance of Magnachip's new subsidiary in Hefei, China?

The new subsidiary aims to expand Magnachip's display driver IC and power IC businesses in the Chinese market.

When was Magnachip Technology Company established?

Magnachip Technology Company was established on December 20, 2023.

What are the future plans for Magnachip Technology Company?

MTC plans to establish branch offices in Beijing, Chengdu, and Shenzhen to enhance communication and market responsiveness.

What is the focus of Magnachip Technology Company?

MTC will focus on OLED Display Driver IC and power management IC capabilities to meet the demands of the Chinese consumer market.

How many patents does Magnachip hold?

Magnachip holds around 1,100 registered patents and pending applications.