MAGNACHIP SEMICONDUCTOR CorpMX
MAGNACHIP SEMICONDUCTOR Corp Segments Disclosure
18. Geographic and Other Information
The Company operates within a single operating segment, standard products business, and also separately reports Transitional Fab 3 Foundry Services revenue and cost of sales.
The Chief Executive Officer, as the chief operating decision maker (“CODM”), organizes the Company and measures performance of two business lines of MSS and PAS in the standard products business at the level of revenue and gross profit margin by comparing actual results against previously forecasted targets.
The Company’s CODM does not evaluate the performance of each business line using any information, such as asset or liability, other than revenue and gross profit margin.
In previous reporting periods, the Company categorized revenues from two business lines in its standard products business: the Display Solutions business line and the Power Solutions business line. As part of the Reorganization, the Company regrouped its standard products business into the Mixed-Signal Solutions business line and the Power Analog Solutions business line. Accordingly, effective as of the first quarter of fiscal 2024, the Company categorizes its standard product business revenue by those two regrouped business lines. See “Note 1. Business, Basis of Presentation and Significant Accounting Policies—Business” for additional information regarding the Reorganization.
Revenues for the year ended December 31, 2023 from its previous product categories have been reclassified in order to conform to the current period presentation as follows (in thousands):
MSS |
PAS |
Total |
||||||||||||||
Display Solutions |
$ | 32,134 |
$ |
32,134 |
$ |
— |
$ |
32,134 |
||||||||
Power Solutions |
163,556 | 12,232 | 151,324 | 163,556 | ||||||||||||
| $ | 195,690 | $ | 44,366 | $ | 151,324 | $ | 195,690 | |||||||||
The following sets forth information relating to the operating segment, standard products business, as well as the Transitional Fab 3 Foundry Services (in thousands). For financial information below gross profit, including operating income and expenses as well as other income and expenses, please refer to the Company’s consolidated statement of operations.
Year Ended December 31, |
||||||||
2024 |
2023 |
|||||||
Revenues |
||||||||
Standard products business |
||||||||
Mixed-Signal Solutions |
$ | 54,336 | $ | 44,366 | ||||
Power Analog Solutions |
166,804 | 151,324 | ||||||
Total standard products business |
221,140 | 195,690 | ||||||
Transitional Fab 3 foundry services |
10,597 | 34,361 | ||||||
Total revenues |
$ | 231,737 | $ | 230,051 | ||||
Year Ended December 31, |
||||||||
2024 |
2023 |
|||||||
Cost of Sales |
||||||||
Standard products business |
||||||||
Mixed-Signal Solutions |
$ | 32,706 | $ | 29,397 | ||||
Power Analog Solutions |
135,302 | 114,365 | ||||||
Total standard products business |
168,008 | 143,762 | ||||||
Transitional Fab 3 foundry services |
11,814 | 34,649 | ||||||
Total cost of sales |
$ | 179,822 | $ | 178,411 | ||||
Year Ended December 31, |
||||||||
2024 |
2023 |
|||||||
Gross Profit |
||||||||
Standard products business |
||||||||
Mixed-Signal Solutions |
$ | 21,630 | $ | 14,969 | ||||
Power Analog Solutions |
31,502 | 36,959 | ||||||
Total standard products business |
53,132 | 51,928 | ||||||
Transitional Fab 3 foundry services |
(1,217 | ) | (288 | ) | ||||
Total gross profit |
$ | 51,915 | $ | 51,640 | ||||
The following is a summary of net sales—standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands):
Year Ended December 31, |
||||||||
2024 |
2023 |
|||||||
Korea |
$ | 85,991 | $ | 66,817 | ||||
Asia Pacific (other than Korea) |
127,967 | 119,244 | ||||||
United States |
2,120 | 2,830 | ||||||
Europe |
5,062 | 6,799 | ||||||
Total |
$ | 221,140 | $ | 195,690 | ||||
For the years ended December 31, 2024 and 2023, of the Company’s net sales—standard products business in Asia Pacific (other than Korea), net sales—standard products business in Greater China (China and Hong Kong) represented 74.8% and 67.0%, respectively, and net sales—standard products business in Japan represented 10.1% and 11.5%, respectively.
Net sales from the Company’s top ten largest customers in the standard products business (which does not include the Transitional Fab 3 Foundry Services) accounted for 74% and 69% for the years ended December 31, 2024 and 2023, respectively.
For the year ended December 31, 2024, the Company had two customers that represented 21.4% and 14.7% of its net sales—standard products business, and for the year ended December 31, 2023, the Company had two customers that represented 16.7% and 13.4% of its net sales—standard products business.
As of December 31, 2024, one customer of the Company’s standard products business accounted for 34.8% of its accounts receivable – standard products business (which does not include the Transitional Fab 3 Foundry Services). As of December 31, 2023, three customers of the Company’s standard products business accounted for 34.9%, 14.4% and 13.9% of its
accounts receivable – standard products business (which does not include the Transitional Fab 3 Foundry Services), respectively.
97% of the Company’s property, plant and equipment are located in Korea as of December 31, 2024.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 14, 2025 | Showing above |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 22, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.