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SEOUL - Magnachip Semiconductor Corporation (NYSE: MX), a $150.3 million market cap semiconductor company currently trading below its InvestingPro Fair Value, has launched two new 6th-generation 650V Insulated Gate Bipolar Transistors (IGBTs) aimed at enhancing the efficiency of solar inverters. The announcement, made earlier this week, introduces the MBQ40T65S6FHTH and MBQ40T65S6FSTH, both designed to operate reliably in extreme conditions, including high temperatures and humidity.
The MBQ40T65S6FHTH is reported to reduce conduction loss by about 25% and improve overall system efficiency by approximately 15% in 15kW solar inverters compared to its predecessor. Meanwhile, the MBQ40T65S6FSTH focuses on cutting switching losses by 15% and conduction losses by around 8%, resulting in an 11% efficiency increase in 3kW solar inverters.
These new products, which include integrated fast recovery anti-parallel diodes, are part of Magnachip’s strategy to expand its range of power products. With a strong balance sheet showing a current ratio of 4.81 and trading at just 0.5 times book value, the company appears well-positioned to support its expansion plans. The products are suited for various applications that require high reliability and efficiency, such as industrial motor drives, power supply units, and uninterruptible power supplies.
YJ Kim, CEO of Magnachip, expressed the company’s commitment to innovation in renewable energy, automotive, industrial, and AI applications. He also mentioned plans to introduce a broader range of Gen6 650V IGBT products with current ratings from 5A to 75A in the second half of the year.
The discrete IGBT market in the renewable energy sector is anticipated to grow significantly, with a compound annual growth rate of 19% from 2025 to 2028, according to Omdia, a market research firm. While Magnachip reported revenue of $219.52M in the last twelve months, analysts see potential upside with price targets ranging from $6 to $8 per share. Get detailed analysis and 8 additional key insights about Magnachip with InvestingPro’s comprehensive research report, part of its coverage of over 1,400 US stocks.
Magnachip, with nearly 45 years of history, is known for its extensive portfolio of analog and mixed-signal semiconductor platform solutions. The company has nearly 1,000 chip designs and has manufactured and shipped over 23 billion units since entering the Power business in 2007.
This development reflects Magnachip’s increased focus on power efficiency and reliability, aligning with the growing demand for advanced components in the solar energy market. The information for this article is based on a press release statement.
In other recent news, Magnachip Semiconductor Corporation has announced a strategic shift, deciding to exit its Display business and focus entirely on its Power and Power IC products. This move is intended to enhance profitability and shareholder value, with the Display segment to be reported as discontinued operations in the upcoming Q1 earnings report. The company has seen a 13% revenue increase in its Power business in 2024, reaching $185 million, and anticipates further growth in 2025. Additionally, Magnachip has expanded its product offerings with the release of 25 new 6th-generation Super Junction MOSFETs, which offer improved power efficiency and compact sizes for a variety of applications.
The company plans to invest $65-70 million over the next three years to upgrade its Gumi manufacturing facility, supported by a $26.5 million Equipment Financial Credit Agreement. This investment aims to improve the product roadmap and manage cash effectively. Meanwhile, Magnachip’s Chairman, Camillo Martino, reaffirmed the Board’s commitment to refocusing the company for profitable growth. In light of these developments, Magnachip is also launching over 40 new-generation power products this year, targeting high-value markets such as automotive and industrial applications.
These recent developments reflect Magnachip’s commitment to advancing its technology and market leadership as it transitions to a pure-play Power company.
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