MagnaChip Semiconductor

Magnachip Semiconductor reported second-quarter 2026 total consolidated revenue of $44.7 million, a 6.1% year-over-year decrease and a 3.3% sequential decline, while announcing a strategic partnership with Navitas Semiconductor to license GeneSiC technology for high-voltage silicon carbide applications. Gross profit margin was 19.3%, exceeding the guidance range of 17% to 19%, but adjusted operating loss widened to $7 million from $4.8 million a year earlier, and non-GAAP diluted loss per share was $0.13 compared with a loss of $0.05 in the prior-year period. The company guided third-quarter revenue to a range of $41.5 million to $45.5 million, representing a midpoint sequential decline of 2.7%, and gross margin to 17% to 19%, citing packaging constraints, lower customer volumes in certain custom applications, and continued pricing pressure on legacy products. CEO Chae Lee stated the goal is to transition from a follower to a leader by focusing on differentiated application-specific solutions, and management expects new-generation products to contribute at least 10% of revenue in the fourth quarter of 2026, up from 2% for full-year 2025. The company also established a $50 million at-the-market offering program and ended the quarter with cash of $87.9 million and total borrowings of $41.5 million.

Magnachip Semiconductor guided third-quarter revenue to a range of $41.5 million to $45.5 million and reiterated its goal for new-generation products to contribute at least 10% of revenue in the fourth quarter of 2026. CFO Shin Young Park attributed the sequential revenue decline to packaging constraints in the supply chain, lower customer volumes in certain custom applications, and an unfavorable product mix from continued pricing pressure on legacy products. The company also expects a planned electrical substation upgrade to lower fab utilization in the third quarter, creating a one-quarter lag effect that will cause fourth-quarter gross margin to decline slightly from the third quarter. Second-quarter revenue came in at $44.7 million, within the guidance range of $44.5 million to $48.5 million, while gross margin improved to 19.3%, exceeding the high end of the 17% to 19% guidance. CEO Chae Lee highlighted a new strategic partnership with Navitas Semiconductor to license its GeneSiC technology for high-voltage silicon carbide applications, with plans to qualify and manufacture those products in Magnachip's fab in Korea.