MagnaChip will continue to operate its 200mm Fab 3, located in Gumi, Korea used primarily to manufacture wafers for power standard products and non-OLED display products.
The transaction is expected to close within approximately four to six months, subject to customary closing conditions.
MagnaChip announced that it had begun a strategic evaluation of the company's foundry business and of the future for Fab 4 in Cheongju, in February 2019. Fab 4 is an analog and mixed signal fab responsible for 73 percent of MagnaChip's total capacity. MagnaChip is also a producer of standard products, but could opt to outsource manufacturing to whoever is the eventual owner of Fab 4 and the foundry business as well as to other sources.
MagnaChip was founded in 2004 by the spin-off of the non-memory chip unit of Hynix Semiconductor, owned by Citigroup Venture Capital Equity Partners L.P., CVC Asia Pacific Ltd. and Francisco Partners. MagnaChip, inherited business lines from Hynix that included: CMOS image sensors, LCD drivers and foundry services.
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