SEOUL: Magnachip Semiconductor Corporation (NYSE: MX) announced Monday that CEO YJ Kim has stepped down from his role and from the Board of Directors, effective immediately. Camillo Martino, Chairman of the Board, has been appointed Interim Chief Executive Officer.
The leadership change comes as Magnachip undergoes a strategic transformation to become a pure-play power semiconductor company. Martino said the company faces “strategic, operational and financial challenges” that require new leadership.
“I am fully committed as Interim CEO and will spend most of my time in South Korea to accelerate our transition,” Martino said. “We are prioritizing capital allocation and cutting capital expenditures by more than 50% over the next two-plus years.”
Capital spending, previously forecast at $65–70 million through 2027, is now expected to range between $30–35 million, with net cash outlay of $12–13 million. The remainder will be financed through a bank equipment loan facility.
Martino also announced cost-cutting measures, including headcount reductions in shared corporate functions, targeting $2–3 million in annual savings with a 1.5-year payback period. The Board will continue to evaluate strategic alternatives, including a potential sale of the company.
YJ Kim, who led Magnachip for a decade, said, “It’s been an honor to lead Magnachip. I thank the employees and the Board for their support.”