August 13, 2025 /SemiMedia/ — Magnachip Semiconductor, a South Korean power semiconductor manufacturer, announced that CEO YJ Kim has resigned after ten years in the role, with Board Chairman Camillo Martino appointed as interim CEO. The company is also reviewing potential sale options and plans to nearly halve its capital expenditure.

Magnachip previously sold its largest wafer fab and foundry business in 2020 to focus on power MOSFETs and display drivers. Since divesting the display driver business and shifting to automotive MOSFET supply, a prior acquisition bid from China-based Zhilu Capital was blocked by U.S. regulators. The current sale plan may face similar challenges.

The CEO change comes amid a semiconductor market recovery, highlighting strategic disagreements among major shareholders. Martino commented, “YJ Kim led Magnachip through turbulent times over the past decade and contributed significantly. However, the company faces strategic, operational, and financial challenges in its transition to a focused power semiconductor business, requiring new leadership.”

As part of capital allocation adjustments, Magnachip will reduce planned capital expenditure from $65–70 million to $30–35 million, largely funded by debt. Additional cost reduction measures are under review to achieve adjusted EBITDA breakeven as soon as possible, including staff reductions in support functions, targeting $2–3 million in annual operational savings with a 1.5-year payback period.

The board said it will evaluate all strategic alternatives, including potential sale, to optimize the company's future growth.