Chip factory announces shutdown...

Latest update time：2023-02-28 16:22

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According to news on February 23, according to Korean media reports, due to soaring inventories and sluggish product sales, MagnaChip decided to suspend production at its factory in Gumi, Gyeongsangbuk-do, South Korea, for a week starting from the 25th of this month!

It is understood that the factory mainly produces power management ICs. Based on the input of 8-inch wafers, the factory has a monthly production capacity of 40,000 pieces. According to data, MagnaChip is the world's largest independent OLED display driver chip (DDIC) manufacturer. Its global market share in 2020 is as high as 33.2%, ranking second in the world after Samsung Electronics.

Magnachip did so because of its high inventory and low demand, sources said. The company said the plant will still have power, but workers will be off work.

It is understood that MagnaChip’s Gumi wafer fab has a monthly production capacity of 40,000 wafers, using 8-inch wafers. Fab shutdowns are extremely rare and are mostly caused by accidents.

The report pointed out that MagnaChip’s suspension measures were related to its declining performance. Not long ago, Magnachip announced its performance announcement for the fourth quarter of 2022 and the full year of fiscal 2022. The announcement showed that Magnachip’s fourth-quarter revenue was US$61 million, a year-on-year decrease of 44.7%; gross profit margin was 26.4%, lower than 35% in the same period last year; operating loss was US$10.117 million, while operating profit in the same period last year was US$63.87 million.

At the same time, most chipmakers operating 8-inch wafer foundries are experiencing declining business due to the downturn in the chip industry.

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