Magnachip CEO steps down as company weighs potential sale
Magnachip Semiconductor's CEO YJ Kim will step down from his role and the company's board of directors, effective immediately, as the board considers “all strategic alternatives,” including a potential sale. Board Chairman Camillo Martino has been appointed interim CEO.
The company said it is cutting planned capital expenditures by more than half through 2027, reducing its forecast from USD 65–70 million to USD 30–35 million. Magnachip expects its net cash outlay to be USD 12–13 million, with the remainder financed through a bank equipment loan.
“YJ Kim became CEO during a turbulent period in the company’s history, and has led the firm for the past decade,” Martino says in a press release. “However, Magnachip now faces several strategic, operational and financial challenges as it transitions to become a pure-play power semiconductor company, and this requires new leadership.”
Martino continues to say that the cuts are part of a broader effort to prioritise spending and accelerate the company’s transition to a pure-play power semiconductor business. The company also plans to review “all strategic alternatives,” including a potential sale, and to reduce operating expenses by USD 2–3 million annually through headcount reductions, mainly in shared corporate functions.
“Among the first actions being taken in our plan is cutting capital expenditures by more than 50% over the next two-plus years as we prioritise capital allocation. As part of our capital allocation plans, it is important that we invest in our Gumi fab to support the growth of our new-generation power products that are critical to our financial recovery.“