According to Bloomberg, MagnaChip Semiconductor has sold its foundry business and Fab 4 manufacturing facility in Qingju, South Korea, for $ 435 million.

MagnaChip, formerly SK Hynix Semiconductor's system integrated circuit business, has world-class technical capabilities and has five wafer fabs in South Korea. MagnaChip develops, produces, and distributes system integrated circuit chips. It is mainly dedicated to display drive integrated circuits, CMOS image sensors and application solution processors, and operates wafer foundry business.

MagnaChip said in a statement that it agreed to sell the businesses to a consortium led by private equity fund management companies Alchemist Capital Partners Korea and Credian Partners. The consortium agreed to acquire the company's business and manufacturing plants for approximately $ 345 million in cash and bear about $ 90 million in employee severance pay.

The transaction is expected to be completed within the next 6 months. Approximately 1,500 employees will be transferred to the newly established Special Purpose Company (SPC).