Due to high inventory and low demand, South Korean chip maker MagnaChip Guiwei plant plans to stop production for a week.

February 24 news, according to foreign media reports, due to high inventory and low demand, South Korean chipmaker MagnaChip's plant in Guiwei, South Korea plans to stop production for a week from this Saturday.

Sources said MagnaChip did so because of its high inventory and low demand.

MagnaChip, formerly known as Hynix Semiconductor's system integrated circuit business, develops, manufactures and distributes system integrated circuit chips, specializes in display driver chips and power semiconductor chips, and operates contract manufacturing. The company's customers include Samsung and LG Display.

It is reported that the company has five fabs in South Korea. Among them, the tortoise tail factory mainly produces power semiconductors, with a monthly production capacity of 40,000 8-inch wafers.

In the fourth quarter of 2022, the company earned $61 million in revenue, down 44.7% from a year earlier; gross profit margin was 26.4%, down from 35% in the same period last year; and operating loss was $10.117 million, compared with an operating profit of $63.87 million in the same period last year.

For the whole of 2022, the company earned $337.7 million in revenue, down 28.8 per cent from a year earlier; gross profit was 30 per cent, down 240bp from a year earlier; and operating loss was $5.24 million, compared with an operating profit of $83.4 million last year.