LX Group started to acquire MagnaChip Semiconductor, a mid-sized system semiconductor company.
According to LX Group on the 18th, LX Semicon (formerly Silicon Works), a company specializing in semiconductor design, submitted a letter of intent to take over to JP Morgan, the U.S. agency responsible for the sale of Magnachip semiconductors the day before.
MagnaChip Semiconductor was spun off in October 2004 when SK Hynix (then Hynix Semiconductor) liquidated the non-memory sector to focus on memory semiconductors, and was later acquired by Citigroup Venture Capital of the United States, giving it its current name.
MagnaChip Semiconductor, listed on the New York Exchange (NYSE) in the United States, has its headquarters and production facilities in Korea, but its major shareholders are currently American hedge funds.
Last year, Chinese private equity fund Wise Road Capital spent about $1.4 billion (about 1.7 trillion won) to acquire Magnachip Semiconductor, but the acquisition was ultimately canceled due to the US government’s brakes.
MagnaChip focuses on organic light emitting diode (OLED) display driver driving chips (DDI) and power semiconductors for automobiles. In particular, the DDI field, which is installed in TVs and smartphones, ranks second in global market share after Samsung Electronics.
Choi Soo-jin, reporter at Hankyung.com [email protected]
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