February 12, 2025 /SemiMedia/ — South Korean chipmaker Magnachip Semiconductor is looking to sell itself again after a failed attempt to sell to a Chinese private equity firm four years ago, according to sources familiar with the matter.

Magnachip, listed on the New York Stock Exchange, has appointed a foreign investment bank as its adviser for the sale and has engaged in talks with potential buyers, including South Korean giants Samsung Electronics, LG Electronics, LX Group, Doosan Group, and DB HiTek Co.

Headquartered in South Korea, Magnachip produces display driver integrated circuits (DDIC) and automotive power semiconductors. The company is currently looking to sell its wholly-owned subsidiary, Magnachip Mixed-Signal Ltd., but would consider selling the entire company if a buyer is interested.

In 2021, Magnachip signed a $1.4 billion acquisition agreement with Chinese private equity firm Wise Road Capital, but the deal was blocked by the U.S. government. Wise Road Capital had agreed to buy Magnachip’s common stock at $29 per share in cash.

Due to a prolonged slump in the global display industry, Magnachip's stock price has continued to decline. According to sources in Seoul's investment banking industry, the sale price is expected to reach a maximum of 400 billion Korean won ($270 million). As of January 31, Magnachip’s market value stood at just $150 million, with shares trading at $4.05.

In 2023, Magnachip's revenue fell 30.4% to 300.5 billion Korean won, resulting in a net loss of 59.4 billion Korean won, compared to a net profit of 16.3 billion Korean won in 2022.

With the potential for the U.S. government to block any future transactions involving Chinese companies, Magnachip is now expected to focus on finding buyers from South Korean companies and private equity firms. LX Group is seen as a likely candidate, as it seeks to merge its foundry subsidiary, LX Semicon, with Magnachip to achieve economies of scale in chip design and manufacturing.