Foundry chip company formed in Korea

Foundry chip company formed in Korea

Business news |
By Peter Clarke

The buyer is a wholly-owned subsidiary of newly-formed Magnus Semiconductor LLC, which was established by Alchemist Capital Partners Korea Co. Ltd. and Credian Partners Inc. as a consortium to take on the foundry business. Although not explicitly mentioned in the press release it is thought that SK Hynix has a share in the company.

The purchase price was approximately $350.6 million in cash and the buyer is assuming all severance liabilities relating to the transferred employees, which have a value of approximately $100 million.

MagnaChip said it would use approximately $227.4 million of the net proceeds of the sale to pay off debts.

“This [sale] represents a pivotal chapter for MagnaChip as we are transforming into a streamlined, pure-play standard products company focused on the attractive growth opportunities in our display and power businesses,” said YJ Kim, CEO of MagnaChip, in a statement.

Related links and articles:

News articles:

SK Hynix buys MagnaChip foundry business, Fab 4

Korea’s MagnaChip shuts wafer fab

SK Hynix mulls buying MagnaChip fab, foundry business

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