Magnachip quits CMOS image sensor field
magnachip semiconductor company in South Korea has completely quit CMOS image sensor business due to losses. Magnachip once took the lead in research with chromium oxide grinding paste in this market, but became very slow in some product markets, and was excluded by micron, omnivision and Toshiba
magnachip announced the closure of its image processing solutions business unit, but still provided technical support to its original customers
magnachip's maintenance cost will reach $26.3 million by the end of the quarter, while the restructuring cost to be completed in the fourth quarter is expected to reach about $15.2 million. Maintenance and restructuring costs totaled $41.5 million, of which $27.6 million will be paid in non cash within the next 18 months. Magnachip reported revenue of $176million in the third quarter, compared with $200million in the same period last year. Its net loss in the third quarter of this year was $139.8 million, compared with $38.8 million last year
sang Park, CEO of magnachip semiconductor, said, "in view of the current economic environment and tight credit supply, there are four main reasons why the customer demand in the third quarter will promote the rapid development of biomedical materials, which are far lower than expected."
"looking forward to the future, we believe that the current market conditions and weak customer demand will continue for a period of time. Although it is challenging for material scientists and engineers to design, test and produce print heads, silicon wafers and thermal inkjet print heads here, we can still see the business opportunities of new products and the involvement of new customers in 2009."
magnachip recently put forward a new transformation strategy, which aims to improve the bottom line of revenue and recover the lost market share. As part of this strategy, magnachip will make a comeback in CMOS image sensor business, strengthen foundry services in wafer, and expand in analog and power MOSFET business
however, it is obvious that the durability of the company's real gold plate in the CMOS image sensor business is not good, and its efforts have failed