YJ Kim, the CEO of Magnachip Semiconductor Corporation (NYSE: MX), has stepped down from his position as CEO and from the company’s Board of Directors, effective immediately. Camillo Martino, the company’s Board Chairman, has been appointed Interim Chief Executive Officer to lead Magnachip through a critical phase of strategic transformation.
Kim had been at the helm of Magnachip for the past decade, steering the company through periods of volatility and market challenges. In his departure statement, Kim expressed gratitude to the company’s employees and the board, describing it as “an honor to lead Magnachip” over the past ten years.
Camillo Martino acknowledged Kim’s leadership during turbulent times but stressed that new leadership was essential to address the significant strategic, operational, and financial hurdles facing the company. Magnachip is currently undergoing a transition to become a pure-play power semiconductor firm, a shift that requires renewed focus and fresh execution.
“Magnachip now confronts several complex challenges as it focuses on power semiconductors,” Martino said. “This demands decisive leadership to accelerate our transformation and deliver sustainable profitability while maximizing shareholder value.”
To achieve this, Martino outlined several immediate priorities. Among these is a sharp reduction in capital expenditures, cutting spending by more than half compared to prior forecasts. Previously expected to range between $65 million and $70 million through 2027, capital expenditure projections have been revised down to between $30 million and $35 million. The company expects to spend roughly $12 million to $13 million in net cash outlay, with the balance financed through an existing bank equipment loan facility.
Martino emphasized the importance of continued investment in Magnachip’s Gumi fabrication facility in South Korea. This site will play a central role in developing next-generation power products, which are expected to enhance Magnachip’s market competitiveness, raise average selling prices, and improve gross profit margins — all critical factors in the company’s planned financial recovery.
In parallel with capital discipline, Magnachip is implementing cost-reduction measures across its operations. Headcount reductions are planned, particularly within shared corporate functions, targeting annual operating expense savings of $2 million to $3 million. The company anticipates these measures will deliver a payback period of approximately 18 months.
The board is actively reviewing all strategic options to optimize shareholder returns, including the possibility of a company sale. Martino acknowledged shareholder frustration with the company’s recent performance and reiterated the board’s commitment to maximizing capital returns.
“I will spend most of my time in South Korea to drive this transition and work closely with management to execute our strategic and financial plans, including our new power product roadmap,” Martino said.
Magnachip’s leadership change marks a critical juncture as the company seeks to reposition itself amid the evolving semiconductor landscape.
