Magnachip CEO YJ Kim Steps Down, Camillo Martino Appointed Interim CEO.

Magnachip Semiconductor's CEO YJ Kim has stepped down, and Chairman Camillo Martino has been appointed interim CEO. The company plans to cut CAPEX by over 50% through 2027 and is exploring strategic alternatives.

Magnachip Semiconductor has announced significant changes in its leadership and strategic direction. On August 11, 2025, the company appointed Camillo Martino as its interim Chief Executive Officer (CEO), replacing Young-Joon Kim, who resigned from the position on the same date. Martino, who has served as non-executive chairman since June 2020 and as a director since August 2016, will continue in his role as chairman but has stepped down from the Audit, Compensation, and Nominating and Corporate Governance Committees [1].

The company has also outlined plans to reduce its capital expenditure (CAPEX) by over 50% through 2027. This move is part of Magnachip's broader strategy to explore strategic alternatives and improve its financial position. The appointment of Martino as interim CEO is seen as a way to maintain operational continuity during this transition period [1].

The separation agreement between Magnachip and Kim provides for a substantial severance package. The company has agreed to pay Kim a cash severance equal to twenty-four times his monthly base salary, payable over 24 months with the first payment due two months after separation. Additionally, any earned prorated 2025 bonus and outstanding unvested equity awards will be treated as if the separation were a termination without cause. The separation agreement is subject to execution and non-revocation of a release and compliance with confidentiality and other agreements [1].

The filing also specifies that the former CEO's decision to step down was not due to disagreements with company operations, which helps clarify the nature of the separation. The explicit terms of the separation agreement provide clarity on near-term cash flow timing and equity accounting treatment, although the exact salary amount is not disclosed [1].

In summary, Magnachip Semiconductor's appointment of Camillo Martino as interim CEO and its plans to significantly reduce CAPEX are part of a broader strategy to stabilize operations and explore strategic alternatives. The company's actions reflect a focus on cost management and strategic planning, which are crucial for maintaining investor confidence and ensuring long-term sustainability.

References:
[1] https://www.stocktitan.net/sec-filings/MX/8-k-magnachip-semiconductor-corp-reports-material-event-72adfaa1ba20.html