Feb. 24, 2023 /SemiMedia/ -- According to insiders in the supply chain, MagnaChip's fab in Gumi, North Gyeongsang Province, South Korea will suspend production for a week from the 25th of this month due to soaring inventory and sluggish demand.

MagnaChip is a manufacturer of OLED display driver chips. Its global market share in 2020 was 33.2%, second only to Samsung Electronics, ranking second in the world. The fab in Gumi mainly produces power semiconductors. Based on the input of 8-inch wafers, it has a monthly production capacity of 40,000 pieces.

According to Magnachip's performance announcement for the fourth quarter of 2022 and the full year of fiscal year 2022, its revenue in the fourth quarter was $61 million, a year-on-year decrease of 44.7%; the gross profit margin was 26.4%, which was 35% lower than the same period in 2021; operating loss was $10.117 million, compared with an operating profit of $63.87 million for the same period in 2021. The company's 2022 full-year revenue was $337.7 million, a year-on-year decrease of 28.8%, and its operating profit turned from $83.4 million in the previous year to a loss.

From a quarterly perspective, MagnaChip's earnings declined significantly. The industry insider said that MagnaChip's one-week shutdown should be caused by the decline in performance.