- South Korea’s LX Group looked to acquire Magnachip Semiconductor Corporation (NYSE:MX) to create synergy with the group’s foundry affiliate, the KED Global reports.
- Magnachip is the second-largest DDIC chipmaker with a 30% market share.
- LX Group, a split-off from Korea’s LG Group, looks to submit a letter of intent (LOI) by next week.
- LX Semicon aims to diversify its business portfolio into budding automotive chip production thanks to the popularity of EVs.
- LX aims to achieve economies of scale in the chip design and manufacture business by combining Magnachip with LX Semicon Co.
- LX Semicon, which primarily supplies its products, including display driver ICs (DDICs), to LG Group, can benefit from Magnachip’s DDIC-related patents and manufacturing facilities.
- Magnachip looks to foray into the silicon carbide (SiC)-based automotive power chip market in the second half of 2022.
- Magnachip posted $474 million in revenue with an EBITDA of $64.1 million in 2021.
- Price Action: MX shares traded higher by 17.7% at $17.69 on the last check Tuesday.
