Nicolas Doyle

Martin Yang

Sujeeva De Silva

Nick Doyle

Suji Desilva

- **Magnachip Semiconductor** reported a challenging **Q3 2025**, with revenue falling **17% year-over-year** to **$45.9 million** and losses widening, reflecting soft demand and pricing pressure.  **[1325702_ce79000bc0594378b9739dfef490913d]** 
- The company projects a further decline in **Q4 sales**, with guidance between **$38.5 million and $42.5 million**, and anticipates slimmer margins of **8-10%**.  **[1325702_ce79000bc0594378b9739dfef490913d]** 
- Despite the overall downturn, the **communications segment** was a bright spot, with revenue increasing **95% year-over-year**.  **[1325702_ce79000bc0594378b9739dfef490913d]** 
- Management is implementing **cost-cutting measures**, including headcount reductions to save approximately **$2.5 million annually**, and plans to launch **at least 50 new-generation products in 2025** to revitalize its portfolio.  **[1325702_ce79000bc0594378b9739dfef490913d]** 
- Roth Capital maintained a **Buy rating** on the shares but reduced Magnachip's price target from **$5 to $4**.  **[1325702_ce79000bc0594378b9739dfef490913d]**

Magnachip Semiconductor Reports Challenging Q3 2025 Results and Lower Q4 Guidance

- Magnachip Semiconductor reported **Q3 2025 revenue** of **$45.9 million** from continuing operations, which was about the midpoint of its guidance range, and a **gross profit margin** of **18.6%**, at the low end of its guidance range.  **[0001325702_2228592_3]** **[0001325702_2228592_4]** 
- For **Q4 2025**, the company expects consolidated revenue from continuing operations to be in the range of **$38.5 million to $42.5 million** and a **gross profit margin** of **8%-10%**, primarily due to a **$2.5 million incentive program** and lower fab utilization.  **[0001325702_2228592_5]** 
- The company is implementing strategic initiatives including launching **30 new generation products** in the first nine months of 2025 with **20 more expected in Q4 2025**, and is initiating OpEx cost reduction programs expected to generate approximately **$2.5 million** in annualized savings.  **[0001325702_2228592_2]** 
- Magnachip signed a strategic licensing agreement with **Hyundai Motor Company** regarding the use of **IGBT technology**, with initial revenue expected to start in **2027**.  **[0001325702_2228592_2]**

Magnachip Semiconductor Reports Q3 2025 Results and Provides Q4 2025 Guidance

- For Q3 2025, MX reported **$45.9 million** in revenue from continuing operations, representing a **13.3%** year-over-year decrease, with a gross profit margin of **18.6%**, down **3.4 percentage points** year-over-year.  **[0001325702_2228520:6]** 
- The company's GAAP diluted loss per share was **($0.29)** and Non-GAAP diluted loss per share was **($0.01)** for Q3 2025.  **[0001325702_2228520:6]** 
- MX's Q4 2025 guidance for consolidated revenue from continuing operations is in the range of **$38.5 to $42.5 million**, with an expected gross profit margin between **8% to 10%**, partly due to a **one-time $2.5 million incentive program**.  **[0001325702_2228520:9]** 
- Recent operational highlights include the execution of **cost reduction programs** projected to generate approximately **$2.5 million** in annualized savings, and the launch of **30 new-generation PAS products** in the first nine months of 2025.  **[0001325702_2228520:7]**

MX Reports Q3 2025 Financial Results and Provides Q4 Outlook

- Magnachip has concluded an agreement with Hyundai Mobis regarding the use of **high-performance Insulated Gate Bipolar Transistor (IGBT) technology**, developed through a collaboration since **2015** for electric vehicle (EV) traction inverters.  **[1325702_ed4056c670bb4339a7c87d61af02412a_0]** 
- Hyundai Mobis plans to begin **mass production of inverters** incorporating these jointly developed IGBTs in **2026**.  **[1325702_ed4056c670bb4339a7c87d61af02412a_0]** 
- Magnachip will leverage this jointly developed design to launch its own new series of **industrial IGBTs** in the **first half of next year** (H1 2026), targeting the industrial, AI, and renewable energy markets.  **[1325702_ed4056c670bb4339a7c87d61af02412a_0]** **[1325702_ed4056c670bb4339a7c87d61af02412a_1]** 
- The global IGBT market was valued at over **$11 billion in 2024** and is projected to grow to **$16.9 billion by 2028**.  **[1325702_ed4056c670bb4339a7c87d61af02412a_0]**

Magnachip Expands Industrial IGBT Business with Hyundai Mobis Partnership

- Magnachip reported **Q3 2025 consolidated revenue from continuing operations of $45.9 million** and a **gross profit margin of 18.6%**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_0]** **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_1]**  The company posted a **basic loss per common share of ($0.29)** for the quarter.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_1]** 
- For **Q4 2025, Magnachip forecasts consolidated revenue from continuing operations between $38.5 million and $42.5 million** and a **gross profit margin of 8% to 10%**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_3]**  This guidance reflects a **one-time $2.5 million incentive program** to reduce channel inventory, which is expected to negatively impact gross profit margin by **600 basis points**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_3]** 
- The company expects **full-year 2025 consolidated revenue from continuing operations to be down by 3.8% year-over-year** and a **gross profit margin between 17% to 18%**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_3]** 
- Magnachip implemented operating expense cost reduction programs, including a headcount reduction program, projected to yield approximately **$2.5 million in annualized savings**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_0]**  The company also plans to reduce capital expenditure investments for the Gumi fab upgrade by **more than 50%** over the next two years, compared to the previously expected **$65 to $70 million**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_0]** 
- The company launched **30 new-generation PAS products** in the first nine months of 2025, with plans to launch at least **20 additional new-generation products in Q4 2025**.  **[1325702_a2d13723e1d049c58ab1e15e85de6ac6_0]**

MAGNACHIP SEMICONDUCTOR (MX)