Magnachip Semiconductor CEO YJ Kim Steps Down, Camillo Martino Named Interim CEO Amid Strategic Shift

YJ Kim steps down as CEO of Magnachip Semiconductor, and Camillo Martino is appointed Interim CEO. The company plans to reduce capital expenditure by over 50% through 2027, focusing on financial recovery and sustainable profitability. The Board is exploring strategic alternatives, including potential sale options. Magnachip intends to allocate resources strategically towards its Gumi fab and target operational cost reductions to achieve Adjusted EBITDA breakeven.

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.

The appointment of Martino as Interim CEO follows a period of significant challenges for Magnachip. Martino stated, "We are facing strategic, operational, and financial challenges that require new leadership." He plans to spend most of his time in South Korea to accelerate the transition.

The company has announced a significant reduction in capital expenditures (capex) by more than 50% over the next two-plus years. Previously forecast at $65–70 million through 2027, capex is now expected to range between $30–35 million, with a net cash outlay of $12–13 million. The remainder will be financed through a bank equipment loan facility [1].

Cost-cutting measures are also part of the strategic plan. Martino announced 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 [2].

YJ Kim, who led Magnachip for a decade, thanked the employees and the Board for their support. "It’s been an honor to lead Magnachip," Kim said.

Magnachip, with approximately 45 years of operating history, designs and manufactures analog and mixed-signal power semiconductor solutions for various applications including industrial, automotive, communication, consumer, and computing sectors. The company aims to achieve Adjusted EBITDA breakeven by strategically allocating resources towards its Gumi fab [3].

References:

[1] https://newsnreleases.com/2025/08/12/magnachip-ceo-resigns-capex-cut-strategic-review/
[2] https://seekingalpha.com/news/4483515-magnachip-semiconductor-ceo-steps-down-board-chair-camillo-martino-appointed-interim-ceo
[3] https://www.investing.com/news/company-news/magnachip-ceo-steps-down-as-company-slashes-capex-by-over-50-93CH-4183731