Why Magnachip Semiconductor Shares Are Soaring Today

South Korea’s LX Group looked to acquire Magnachip Semiconductor Corporation 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.