Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-34791 | |
Entity Registrant Name | Magnachip Semiconductor Corporation | |
Entity Central Index Key | 0001325702 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-0406195 | |
Entity Address, Address Line One | c/o Magnachip Semiconductor, Ltd. | |
Entity Address, Address Line Two | 15F, 76 Jikji-daero 436beon-gil | |
Entity Address, City or Town | Heungdeok-gu | |
Entity Address, Country | KR | |
Entity Address, Postal Zip Code | 28581 | |
City Area Code | 82 | |
Local Phone Number | (2) 6903-3000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,265,480 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 212,085 | $ 225,477 |
Accounts receivable, net | 32,143 | 35,380 |
Inventories, net | 36,360 | 39,883 |
Other receivables | 5,342 | 7,847 |
Prepaid expenses | 11,238 | 10,560 |
Hedge collateral (Note 7) | 2,820 | 2,940 |
Other current assets (Note 18) | 14,927 | 15,766 |
Total current assets | 314,915 | 337,853 |
Property, plant and equipment, net | 104,568 | 110,747 |
Operating lease right-of-use assets | 5,413 | 5,265 |
Intangible assets, net | 1,784 | 1,930 |
Long-term prepaid expenses | 9,101 | 10,939 |
Deferred income taxes | 37,380 | 38,324 |
Other non-current assets | 14,683 | 11,587 |
Total assets | 487,844 | 516,645 |
Current liabilities | ||
Accounts payable | 19,921 | 17,998 |
Other accounts payable | 9,216 | 9,702 |
Accrued expenses (Note 6) | 17,125 | 9,688 |
Accrued income taxes | 146 | 3,154 |
Operating lease liabilities | 1,622 | 1,397 |
Other current liabilities | 5,261 | 5,306 |
Total current liabilities | 53,291 | 47,245 |
Accrued severance benefits, net | 23,608 | 23,121 |
Non-current operating lease liabilities | 3,996 | 4,091 |
Other non-current liabilities | 13,596 | 14,035 |
Total liabilities | 94,491 | 88,492 |
Commitments and contingencies (Note 18) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,437,182 shares issued and 42,589,315 outstanding at March 31, 2023 and 56,432,449 shares issued and 43,824,575 outstanding at December 31, 2022 | 564 | 564 |
Additional paid-in capital | 267,187 | 266,058 |
Retained earnings | 314,036 | 335,506 |
Treasury stock, 13,847,867 shares at March 31, 2023 and 12,607,874 shares at December 31, 2022, respectively | (173,441) | (161,422) |
Accumulated other comprehensive loss | (14,993) | (12,553) |
Total stockholders' equity | 393,353 | 428,153 |
Total liabilities and stockholders' equity | $ 487,844 | $ 516,645 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 56,437,182 | 56,432,449 |
Common stock, shares outstanding (in shares) | 42,589,315 | 43,824,575 |
Treasury stock, shares (in shares) | 13,847,867 | 12,607,874 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Net sales | $ 57,005 | $ 104,093 |
Cost of sales: | ||
Cost of sales | 44,911 | 65,097 |
Gross profit | 12,094 | 38,996 |
Operating expenses: | ||
Selling, general and administrative expenses | 12,165 | 14,163 |
Research and development expenses | 13,298 | 11,954 |
Early termination charges | 8,449 | 0 |
Total operating expenses | 33,912 | 26,117 |
Operating income (loss) | (21,818) | 12,879 |
Interest income | 2,842 | 715 |
Interest expense | (256) | (111) |
Foreign currency loss, net | (3,430) | (690) |
Other income (expense), net | (35) | 218 |
Income (loss) before income tax expense | (22,697) | 13,011 |
Income tax expense (benefit) | (1,227) | 3,483 |
Net income (loss) | $ (21,470) | $ 9,528 |
Basic earnings (loss) per common share (in dollars per share) | $ (0.49) | $ 0.21 |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.49) | $ 0.2 |
Weighted average number of shares- | ||
Basic (in shares) | 43,390,832 | 45,603,208 |
Diluted (in shares) | 43,390,832 | 46,693,294 |
Standard Products Business [Member] | ||
Revenues: | ||
Net sales | $ 51,514 | $ 94,010 |
Cost of sales: | ||
Cost of sales | 37,312 | 56,080 |
Gross profit | 14,202 | 37,930 |
Fab 3 Foundry Services [Member] | ||
Revenues: | ||
Net sales | 5,491 | 10,083 |
Cost of sales: | ||
Cost of sales | 7,599 | 9,017 |
Gross profit | $ (2,108) | $ 1,066 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Net income (loss) | $ (21,470) | $ 9,528 |
Other comprehensive loss | ||
Foreign currency translation adjustments | (1,908) | (3,045) |
Derivative adjustments | ||
Fair valuation of derivatives | (1,135) | (1,264) |
Reclassification adjustment for loss on derivatives included in net income (loss) | 603 | 762 |
Total other comprehensive loss | (2,440) | (3,547) |
Total comprehensive income (loss) | $ (23,910) | $ 5,981 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning balance at Dec. 31, 2021 | $ 559 | $ 241,197 | $ 343,542 | $ (130,306) | $ (2,230) | $ 452,762 |
Beginning balance (in shares) at Dec. 31, 2021 | 45,659,304 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 0 | 1,638 | 0 | 0 | 0 | 1,638 |
Exercise of stock options | $ 1 | 1,780 | 0 | 0 | 0 | 1,781 |
Exercise of stock options (in shares) | 151,326 | |||||
Settlement of restricted stock units | $ 2 | (2) | 0 | 0 | 0 | 0 |
Settlement of restricted stock units (in shares) | 168,795 | |||||
Acquisition of treasury stock | $ 0 | 0 | 0 | $ (1,000) | 0 | (1,000) |
Acquisition of treasury stock (in shares) | (53,464) | |||||
Accelerated stock repurchase | $ 0 | 17,217 | 0 | $ (17,217) | 0 | 0 |
Accelerated stock repurchase (in shares) | (1,031,576) | |||||
Other comprehensive loss, net | $ 0 | 0 | 0 | 0 | (3,547) | (3,547) |
Net income (loss) | 0 | 0 | 9,528 | 0 | 0 | 9,528 |
Ending balance at Mar. 31, 2022 | $ 562 | 261,830 | 353,070 | (148,523) | (5,777) | 461,162 |
Ending balance (in shares) at Mar. 31, 2022 | 44,894,385 | |||||
Beginning balance at Dec. 31, 2022 | $ 564 | 266,058 | 335,506 | (161,422) | (12,553) | $ 428,153 |
Beginning balance (in shares) at Dec. 31, 2022 | 43,824,575 | 43,824,575 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 0 | 1,120 | 0 | 0 | 0 | $ 1,120 |
Exercise of stock options | $ 0 | 9 | 0 | 0 | 0 | 9 |
Exercise of stock options (in shares) | 1,400 | |||||
Settlement of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | 0 |
Settlement of restricted stock units (in shares) | 3,333 | |||||
Acquisition of treasury stock | $ 0 | 0 | 0 | $ (12,019) | 0 | (12,019) |
Acquisition of treasury stock (in shares) | (1,239,993) | |||||
Other comprehensive loss, net | 0 | 0 | 0 | $ 0 | (2,440) | (2,440) |
Net income (loss) | 0 | 0 | (21,470) | 0 | 0 | (21,470) |
Ending balance at Mar. 31, 2023 | $ 564 | $ 267,187 | $ 314,036 | $ (173,441) | $ (14,993) | $ 393,353 |
Ending balance (in shares) at Mar. 31, 2023 | 42,589,315 | 42,589,315 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ (21,470) | $ 9,528 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 4,357 | 3,891 |
Provision for severance benefits | 2,330 | 1,670 |
Loss on foreign currency, net | 9,082 | 6,380 |
Provision for inventory reserves | 1,138 | 145 |
Stock-based compensation | 1,120 | 1,638 |
Other, net | 237 | 161 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 2,973 | (1,213) |
Inventories | 1,062 | 1,456 |
Other receivables | 2,376 | 667 |
Other current assets | 1,456 | (6,829) |
Accounts payable | 1,904 | 538 |
Other accounts payable | (1,424) | (702) |
Accrued expenses | 7,600 | 187 |
Accrued income taxes | (2,923) | (2,346) |
Other current liabilities | (596) | (711) |
Other non-current liabilities | (169) | (73) |
Payment of severance benefits | (871) | (1,389) |
Other, net | (306) | (178) |
Net cash provided by operating activities | 7,876 | 12,820 |
Cash flows from investing activities | ||
Proceeds from settlement of hedge collateral | 1,155 | 1,829 |
Payment of hedge collateral | (1,093) | (2,891) |
Purchase of property, plant and equipment | (135) | (944) |
Payment for intellectual property registration | (74) | (59) |
Payment of guarantee deposits | (3,482) | (79) |
Other, net | 19 | 2 |
Net cash used in investing activities | (3,610) | (2,142) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 9 | 1,781 |
Acquisition of treasury stock | (12,264) | (830) |
Repayment of financing related to water treatment facility arrangement | (126) | (134) |
Repayment of principal portion of finance lease liabilities | (24) | (16) |
Net cash provided by (used in) financing activities | (12,405) | 801 |
Effect of exchange rates on cash and cash equivalents | (5,253) | (6,105) |
Net increase (decrease) in cash and cash equivalents | (13,392) | 5,374 |
Cash and cash equivalents at beginning of period | 225,477 | 279,547 |
Cash and cash equivalents at end of period | 212,085 | 284,921 |
Supplemental cash flow information | ||
Cash paid for income taxes | 2,644 | 5,421 |
Non-cash investing and financing activities | ||
Property, plant and equipment additions in other accounts payable | 629 | 524 |
Acquisition of treasury stock to satisfy the tax withholding obligations in connection with equity-based compensation | 0 | 996 |
Unsettled common stock repurchases | $ 401 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Business, Basis of Presentation and Significant Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Business Magnachip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, computing, industrial and automotive applications. The Company’s standard products business includes its Display Solutions and Power Solutions business lines. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and a wide range of applications including smartphones, TVs, automotive and IT applications such as monitors, notebook PCs, tablet PCs as well as AR/VRs. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer, computing, servers, automotive, and industrial applications. On September 1, 2020, the Company completed the sale of the Company’s Foundry Services Group business and its fabrication facility located in Cheongju, Korea, known as “Fab 4”. Following the consummation of the sale, and for up to three years, the Company is expected to provide transitional foundry services associated with its fabrication facility located in Gumi, Korea, known as “Fab 3”, at an agreed upon cost plus mark-up (the “Transitional Fab 3 Foundry Services”). Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). These interim consolidated financial statements include normal recurring adjustments and the elimination of all intercompany accounts and transactions which are, in the opinion of management, necessary to provide a fair statement of the Company’s financial condition and results of operations for the periods presented. These interim consolidated financial statements are presented in accordance with Accounting Standards Codification (“ASC”) 270, “Interim Reporting” and, accordingly, do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements, except for the changes below. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for a full year or for any other periods. The December 31, 2022 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. There have been no material changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2023 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Inventories | 2. Inventories Inventories as of March 31, 2023 and December 31, 2022 consist of the following (in thousands): March 31, 2023 December 31, 2022 Finished goods $ 5,523 $ 6,799 Semi-finished goods and work-in-process 39,427 40,265 Raw materials 6,351 7,460 Materials in-transit — 36 Less: inventory reserve (14,941 ) (14,677 ) Inventories, net $ 36,360 $ 39,883 Changes in inventory reserve for the three months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Beginning balance $ (14,677 ) $ (5,730 ) Change in reserve Inventory reserve charged to costs of sales (2,584 ) (1,607 ) Sale of previously reserved inventory 1,476 1,452 (1,108 ) (155 ) Write off 415 211 Translation adjustments 429 119 Ending balance $ (14,941 ) $ (5,555 ) Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods, work-in-process and raw materials. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 3. Property, Plant and Equipment Property, plant and equipment as of March 31, 2023 and December 31, 2022 are comprised of the following (in thousands): March 31, 2023 December 31, 2022 Buildings and related structures $ 24,214 $ 24,780 Machinery and equipment 134,843 137,666 Finance lease right-of-use assets 707 389 Others 33,529 33,890 193,293 196,725 Less: accumulated depreciation (102,768 ) (101,502 ) Land 12,670 13,034 Construction in progress 1,373 2,490 Property, plant and equipment, net $ 104,568 $ 110,747 Aggregate depreciation expenses totaled $4,193 thousand and $3,706 thousand for the three months ended March 31, 2023 and 2022, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Intangible Assets [Abstract] | |
Intangible Assets | 4. Intangible Assets Intangible assets as of March 31, 2023 and December 31, 2022 are comprised of the following (in thousands): March 31, 2023 Gross amount Accumulated amortization Net amount Intellectual property assets $ 8,916 $ (7,132 ) $ 1,784 Intangible assets $ 8,916 $ (7,132 ) $ 1,784 December 31, 2022 Gross amount Accumulated amortization Net amount Intellectual property assets $ 9,111 $ (7,181 ) $ 1,930 Intangible assets $ 9,111 $ (7,181 ) $ 1,930 Aggregate amortization expenses for intangible assets totaled $164 thousand and $185 thousand for the three months ended March 31, 2023 and 2022, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 5. Leases The Company has operating and finance leases for buildings and other assets such as vehicles and office equipment. The Company’s leases have remaining lease terms ranging from 1 year to 5 years. The tables below present financial information related to the Company’s leases. Supplemental balance sheets information related to leases as of March 31, 2023 and December 31, 2022 are as follows (in thousands): Leases Classification March 31, 2023 December 31, 2022 Assets Operating lease Operating lease right-of-use assets $ 5,413 $ 5,265 Finance lease Property, plant and equipment, net 436 143 Total lease assets $ 5,849 $ 5,408 Liabilities Current Operating Operating lease liabilities $ 1,622 $ 1,397 Finance Other current liabilities 90 90 Non-current Operating Non-current operating lease liabilities 3,996 4,091 Finance Other non-current liabilities 364 63 Total lease liabilities $ 6,072 $ 5,641 The following table presents the weighted average remaining lease term and discount rate: March 31, 2023 December 31, 2022 Weighted average remaining lease term Operating leases 3.4 years 3.7 years Finance leases 4.1 years 2.4 years Weighted average discount rate Operating leases 6.6 % 6.6 % Finance leases 7.7 % 7.6 % The components of lease cost included in the Company’s consolidated statements of operations, are as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Operating lease cost $ 555 $ 569 Finance lease cost Amortization of right-of-use assets 32 16 Interest on lease liabilities 7 2 Total lease cost $ 594 $ 587 The above table does not include an immaterial cost of short-term leases for the three months ended March 31, 2023 and 2022. Other lease information is as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 567 $ 569 Operating cash flows from finance leases 7 2 Financing cash flows from finance leases 24 16 The aggregate future lease payments for operating and finance leases as of March 31, 2023 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2023 $ 1,448 $ 91 2024 1,925 122 2025 1,419 121 2026 937 108 2027 644 95 Total future lease payments 6,373 537 Less: Imputed interest (755 ) (83 ) Present value of future payments $ 5,618 $ 454 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses as of March 31, 2023 and December 31, 2022 are comprised of the following (in thousands): March 31, 2023 December 31, 2022 Payroll, benefits and related taxes, excluding severance benefits $ 14,475 $ 7,620 Withholding tax attributable to intercompany interest income 473 43 Outside service fees 1,625 1,642 Others 552 383 Accrued expenses $ 17,125 $ 9,688 Payroll, benefits and related taxes payable as of March 31, 2023 in the table above includes termination related charges under the voluntary resignation program (the “Program”) of $8,449 thousand, which are expected to be paid in the second quarter of 2023. See “Note 10. Early Termination Charges” for more information regarding the Program. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments The Company’s Korean subsidiary from time to time has entered into zero cost collar contracts to hedge the risk of changes in the functional-currency-equivalent cash flows attributable to currency rate changes on U.S. dollar denominated revenues. Details of the zero cost collar contracts as of March 31, 2023 are as follows (in thousands): Date of transaction Total notional amount Month of settlement January 04, 2022 $ 15,000 April 2023 June 2023 March 07, 2022 $ 24,000 July 2023 December 2023 April 27, 2022 $ 33,000 April 2023 December 2023 March 08, 2023 $ 18,000 July 2023 December 2023 Details of the zero cost collar contracts as of December 31, 2022 are as follows (in thousands): Date of transaction Total notional amount Month of settlement January 04, 2022 $ 30,000 January 2023 June 2023 March 07, 2022 $ 24,000 July 2023 December 2023 April 27, 2022 $ 42,000 January 2023 December 2023 The zero cost collar contracts qualify as cash flow hedges under ASC 815, “Derivatives and Hedging,” since at both the inception of the contracts and on an ongoing basis, the hedging relationship was and is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the contracts. The fair values of the Company’s outstanding zero cost collar contracts recorded as assets and liabilities as of March 31, 2023 and December 31, 2022 are as follows (in thousands): Derivatives designated as hedging instruments: March 31, 2023 December 31, 2022 Asset Derivatives: Zero cost collars Other current assets $ 2 $ — Liability Derivatives: Zero cost collars Other current liabilities $ 2,641 $ 2,015 Offsetting of derivative assets and liabilities as of March 31, 2023 is as follows (in thousands): Gross amounts of recognized Assets/liabilities Gross amounts offset in the balance sheets Net amounts of Assets/liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount As of March 31, 2023 Financial instruments Cash collateral pledged Asset Derivatives: Zero cost collars $ 2 $ — $ 2 $ — $ — $ 2 Liability Derivatives: Zero cost collars $ 2,641 $ — $ 2,641 $ — $ (1,820 ) $ 821 Offsetting of derivative liabilities as of December 31, 2022 is as follows (in thousands): Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount As of December 31, 2022 Financial instruments Cash collateral pledged Liability Derivatives: Zero cost collars $ 2,015 $ — $ 2,015 $ — $ (1,940 ) $ 75 For derivative instruments that are designated and qualify as cash flow hedges, gains or losses on the derivative aside from components excluded from the assessment of effectiveness are reported as a component of accumulated other comprehensive income or loss (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative, representing hedge components excluded from the assessment of effectiveness, are recognized in current earnings. The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Loss Recognized in AOCI on Derivatives Location/Amount of Loss Reclassified from AOCI Into Statement of Operations Location/Amount of Loss Recognized in Statement of Operations on Derivatives Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 2023 2022 Zero cost collars $ (1,135 ) $ (1,264 ) Net sales $ (603 ) $ (762 ) Other income, net $ (54 ) $ (129 ) $ (1,135 ) $ (1,264 ) $ (603 ) $ (762 ) $ (54 ) $ (129 ) As of March 31, 2023, the amount expected to be reclassified from accumulated other comprehensive loss into loss within the next 12 months is $1,757 thousand. The Company set aside cash deposit to the counterparty, Standard Chartered Bank Korea Limited (“SC”), as required for the zero cost collar contracts. This cash deposit is recorded as hedge collateral on the consolidated balance sheets. Cash deposits as of March 31, 2023 and December 31, 2022 are as follows (in thousands): Counterparty March 31, 2023 December 31, 2022 SC $ 1,000 $ 1,000 Total $ 1,000 $ 1,000 The Company is required to deposit additional cash collateral with Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) and SC for any exposure in excess of $500 thousand. As of March 31, 2023, $1,820 thousand of additional cash collateral was required by NFIK, and recorded as hedge collateral on the consolidated balance sheet. As of December 31, 2022, $1,840 thousand and $100 thousand of additional cash collateral were required by NFIK and SC, respectively, and recorded as hedge collateral on the consolidated balance sheet. These zero cost collar contracts may be terminated by the counterparties if the Company’s total cash and cash equivalents is less than $30,000 thousand at the end of a fiscal quarter, unless a waiver is obtained. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Fair Value of Financial Instruments As of March 31, 2023, the following table represents the Company’s assets and liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value March 31, 2023 Fair Value Measurement March 31, 2023 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Derivative assets (other current assets) $ 2 $ 2 — $ 2 — Liabilities: Derivative liabilities (other current liabilities) $ 2,641 $ 2,641 — $ 2,641 — As of December 31, 2022, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value December 31, 2022 Fair Value Measurement December 31, 2022 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilities (other current liabilities) $ 2,015 $ 2,015 — $ 2,015 — Items not reflected in the table above include cash equivalents, accounts receivable, other receivables, accounts payable, and other accounts payable, fair value of which approximate carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs. |
Accrued Severance Benefits
Accrued Severance Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Severance Benefits [Abstract] | |
Accrued Severance Benefits | 9. Accrued Severance Benefits The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of March 31, 2023, 97% of all employees of the Company were eligible for severance benefits. Changes in accrued severance benefits are as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Beginning balance $ 48,496 $ 51,567 Provisions 2,330 1,670 Severance payments (871 ) (1,389 ) Translation adjustments (1,381 ) (1,077 ) 48,574 50,771 Less: Cumulative contributions to severance insurance deposit accounts (24,747 ) (17,954 ) The National Pension Fund (40 ) (50 ) Group severance insurance plan (179 ) (195 ) Accrued severance benefits, net $ 23,608 $ 32,572 The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance. Beginning in July 2018, the Company contributes to certain severance insurance deposit accounts a certain percentage of severance benefits that are accrued for eligible employees for their services from January 1, 2018 pursuant to Employee Retirement Benefit Security Act of Korea. These accounts consist of time deposits and other guaranteed principal and interest, and are maintained at insurance companies, banks or security companies for the benefit of employees. The Company deducts the contributions made to these severance insurance deposit accounts from its accrued severance benefits. The Company is liable to pay the following future benefits to its non-executive employees upon their normal retirement age (in thousands): Severance benefit Remainder of 2023 $ 634 2024 906 2025 1,502 2026 1,829 2027 1,718 2028 3,699 2029 – 2033 21,043 The above amounts were determined based on the non-executive employees’ current salary rates and the number of service years that will be accumulated upon their retirement dates. These amounts do not include amounts that might be paid to non-executive employees that will cease working with the Company before their normal retirement ages. Korea’s mandatory retirement age is 60 years of age or older under the Employment Promotion for the Aged Act. The Company sets the retirement age of employees at 60. |
Early Termination Charges
Early Termination Charges | 3 Months Ended |
Mar. 31, 2023 | |
Early Termination Charges [Abstract] | |
Early Termination Charges | 10. Early Termination Charges During the first quarter of 2023, the Company commenced the Program, which was available for the employees with more than 20 years of service. For the three months ended March 31, 2023, the Company recorded in its consolidated statement of operations $8,449 thousand of termination related charges as “early termination charges”, which are expected to be paid during the second quarter of 2023. |
Foreign Currency Loss, Net
Foreign Currency Loss, Net | 3 Months Ended |
Mar. 31, 2023 | |
Foreign Currency Loss, Net [Abstract] | |
Foreign Currency Loss, Net | 11. Foreign Currency Loss, Net Net foreign currency gain or loss includes non-cash translation gain or loss associated with intercompany balances. A substantial portion of the Company’s net foreign currency gain or loss is non-cash translation gain or loss associated with intercompany long-term loans to the Company’s Korean subsidiary. The loans are denominated in U.S. dollars and are affected by changes in the exchange rate between the Korean won and the U.S. dollar. As of March 31, 2023 and December 31, 2022, the outstanding intercompany loan balances including accrued interest between the Korean subsidiary and the Dutch subsidiary were $301,860 thousand and $310,988 thousand, respectively. The Korean won to U.S. dollar exchange rates were 1,303.8:1 and 1,267.3:1 using the first base rate as of March 31, 2023 and December 31, 2022, respectively, as quoted by the KEB Hana Bank. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes The Company and its subsidiaries file income tax returns in Korea, Japan, Taiwan, the U.S. and in various other jurisdictions. The Company is subject to income or non-income tax examinations by tax authorities of these jurisdictions for all open tax years. For the three months ended March 31, 2023, the Company recorded an income tax benefit of $1,227 thousand, primarily related to its primary operating entity in Korea based on the estimated taxable loss for the respective period. For the three months ended March 31, 2022, the Company recorded an income tax expense of $3,483 thousand, primarily related to its primary operating entity in Korea based on the estimated taxable income for the respective period. |
Geographic and Other Informatio
Geographic and Other Information | 3 Months Ended |
Mar. 31, 2023 | |
Geographic and Other Information [Abstract] | |
Geographic and Other Information | 13. Geographic and Other Information The following sets forth information relating to the single operating segment (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Revenues Standard products business Display Solutions $ 10,841 $ 29,185 Power Solutions 40,673 64,825 Total standard products business $ 51,514 $ 94,010 Transitional Fab 3 foundry services 5,491 10,083 Total revenues $ 57,005 $ 104,093 Three Months Ended March 31, 2023 March 31, 2022 Gross Profit Standard products business $ 14,202 $ 37,930 Transitional Fab 3 foundry services (2,108 ) 1,066 Total gross profit $ 12,094 $ 38,996 The following is a summary of net sales—standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Korea $ 16,496 $ 31,030 Asia Pacific (other than Korea) 31,901 58,260 United States 1,045 2,864 Europe 2,072 1,856 Total $ 51,514 $ 94,010 For the three months ended March 31, 2023 and 2022, of the Company’s net sales – standard products business in Asia Pacific (other than Korea), net sales – standard products business in China and Hong Kong together represented 57.9% and 71.1%, respectively, and net sales—standard products business in Vietnam represented 17.8% and 14.4%, respectively. Net sales from the Company’s top ten largest customers in the standard products business (which does not include the Transitional Fab 3 Foundry Services) accounted for 71% and 72% for the three months ended March 31, 2023 and 2022, respectively. For the three months ended March 31, 2023, the Company had two customers that represented 16.4% and 13.7% of its net sales—standard products business, respectively. For the three months ended March 31, 2022, the Company had two customers that represented 25.5% and 12.9% of its net sales—standard products business, respectively. As of March 31, 2023, two customers of the Company’s standard products business accounted for 22.3% and 14.3% of its accounts receivable – standard products business (which does not include the Transitional Fab 3 Foundry Services), respectively. As of December 31, 2022, two customers of the Company’s standard products business accounted for 25.1% and 15.2% of its accounts receivable – standard products business (which does not include the Transitional Fab 3 Foundry Services), respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 14. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following as of March 31, 2023 and December 31, 2022, respectively (in thousands): March 31, 2023 December 31, 2022 Foreign currency translation adjustments $ (13,236 ) $ (11,328 ) Derivative adjustments (1,757 ) (1,225 ) Total $ (14,993 ) $ (12,553 ) Changes in accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31 2023 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (11,328 ) $ (1,225 ) $ (12,553 ) Other comprehensive loss before reclassifications (1,908 ) (1,135 ) (3,043 ) Amounts reclassified from accumulated other comprehensive loss — 603 603 Net current-period other comprehensive loss (1,908 ) (532 ) (2,440 ) Ending balance $ (13,236 ) $ (1,757 ) $ (14,993 ) Three Months Ended March 31 2022 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (770 ) $ (1,460 ) $ (2,230 ) Other comprehensive loss before reclassifications (3,045 ) (1,264 ) (4,309 ) Amounts reclassified from accumulated other comprehensive loss — 762 762 Net current-period other comprehensive loss (3,045 ) (502 ) (3,547 ) Ending balance $ (3,815 ) $ (1,962 ) $ (5,777 ) |
Stock Repurchases
Stock Repurchases | 3 Months Ended |
Mar. 31, 2023 | |
Stock Repurchases [Abstract] | |
Stock Repurchases | 15. Stock Repurchases Accelerated Stock Repurchase Program On December 21, 2021, the Board of Directors authorized the Company to repurchase up to $75,000 thousand of its outstanding common stock and the Company entered into an accelerated stock repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank, National Association (“JPM”) to repurchase an aggregate of $37,500 thousand of its common stock. Pursuant to the terms of the ASR Agreement dated December 21, 2021, the Company paid to JPM $37,500 thousand in cash and received an initial delivery of 994,695 shares of its common stock in the open market for an aggregate purchase price of $20,073 thousand and a price per share of $20.18 on December 22, 2021. As of December 31, 2021, the Company accounted for the remaining portion of the ASR Agreement as a forward contract indexed to its own common stock and recorded $17,427 thousand in additional paid-in capital in stockholders’ equity in its consolidated balance sheets. In March 2022, the previously announced repurchase of $37,500 thousand of the Company’s common stock was completed pursuant to the ASR Agreement, and as a result, the Company additionally received 1,031,576 shares of its common stock for an aggregate purchase price of $17,217 thousand at a price per share of $16.69, which was reclassified as treasury stock from additional paid-in capital in stockholder’s equity in its consolidated balance sheets. Expanded Stock Repurchase Program On August 31, 2022, the Board of Directors has authorized an expansion of the Company’s previously announced stock repurchase program from $75,000 thousand to $87,500 thousand of its common stock. The remaining $50,000 thousand of the expanded $87,500 thousand program was planned to be repurchased in the open market or through privately negotiated transactions. In connection with the repurchase program, the Company established a stock trading plan with Oppenheimer & Co. Inc. in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. From September 2022 to December 2022, the Company repurchased 1,235,650 shares of its common stock in the open market for an aggregate purchase price of $12,511 thousand and a price per share of $10.13 under the stock repurchase program. During the first quarter of 2023, the Company repurchased 1,238,472 shares of its common stock in the open market for an aggregate purchase price of $11,887 thousand and a price per share of $9.60 under the stock repurchase program. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 16. Earnings (Loss) Per Share The following table illustrates the computation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 March 31, 2022 (In thousands of U.S. dollars, except share data) Basic Earnings (Loss) per Share Net income (loss) $ (21,470 ) $ 9,528 Basic weighted average common stock outstanding 43,390,832 45,603,208 Basic earnings (loss) per share $ (0.49 ) $ 0.21 Diluted Earnings (Loss) per Share Net income (loss) $ (21,470 ) $ 9,528 Basic weighted average common stock outstanding 43,390,832 45,603,208 Net effect of dilutive equity awards — 1,090,086 Diluted weighted average common stock outstanding 43,390,832 46,693,294 Diluted earnings (loss) per share $ (0.49 ) $ 0.20 Diluted earnings (loss) per share adjusts basic earnings (loss) per share for the potentially dilutive impact of stock options. As the Company has reported loss for the three months ended March 31, 2023, all potentially dilutive securities, including stock options, are antidilutive and accordingly not considered, therefore basic net loss per share equals diluted net loss per share. The following outstanding instruments were excluded from the computation of diluted earnings (loss) per share, as they have an anti-dilutive effect on the calculation: Three Months Ended March 31, 2023 March 31, 2022 Options 1,116,158 130,000 Restricted Stock Units 1,434,827 — |
Merger Agreement
Merger Agreement | 3 Months Ended |
Mar. 31, 2023 | |
Merger Agreement [Abstract] | |
Merger Agreement | 17. Merger Agreement On March 25, 2021, the Company, South Dearborn Limited, an exempted company incorporated in the Cayman Islands with limited liability (“Holdco”), formed by an affiliate of Wise Road Capital LTD (“Wise Road”), and Michigan Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Holdco (“Merger Sub”), entered into an Agreement and Plan of Merger (as amended, the “Merger Agreement”), providing for, among other things and subject to the terms and conditions thereof, the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Holdco. The closing of the Merger was subject to certain conditions, including clearance by the Committee on Foreign Investment in the United States (“CFIUS”) under the Defense Production Act of 1950, as amended. The Company and Holdco were advised that CFIUS clearance of the Merger would not be forthcoming and received permission from CFIUS to withdraw their joint filing. In connection therewith, the Company and Holdco entered into a Termination and Settlement Agreement, dated December 13, 2021 (the “Termination Agreement”), pursuant to which Holdco agreed to pay $70,200 thousand (the “Termination Fee”) to the Company on the terms specified in the Termination Agreement in satisfaction of Holdco’s obligation to pay a termination fee in connection with the termination of the Merger Agreement. On December 20, 2021, the Merger Agreement was terminated pursuant to the Termination Agreement after the Company’s receipt of a fee of $51,000 thousand from Holdco and a standby letter of credit, which secures a deferred fee of $19,200 thousand from Holdco due on or before March 31, 2022. As of December 31, 2021, of the Termination Fee, $19,200 thousand deferred fee was recorded as other receivables. In connection therewith, the Company, Holdco and Wise Road entered into a First Amendment to the Termination Agreement, dated April 4, 2022, pursuant to which Holdco paid $14,400 thousand on April 4, 2022, with $4,800 thousand remaining outstanding. The Company, Holdco and Wise Road entered into a Second Amendment to the Termination Agreement, dated August 5, 2022 pursuant to which Holdco paid $3,000 thousand on August 5, 2022, of the deferred fee and payment of the remaining $1,800 thousand was due on or before October 31, 2022. The Company, Holdco and Wise Road entered into a series of letter agreements pursuant to which the parties ultimately agreed to defer the remaining $1,800 thousand due on or before March 31, 2023. As of March 31, 2023, the remaining fee of $1,800 thousand was recorded as other receivables. On April 6, 2023, Holdco paid the remaining $1,800 thousand. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Advances to Suppliers The Company, from time to time, may make advances in form of prepayments or deposits to suppliers, including external foundries, to meet its planned production. The Company recorded advances of $4,372 thousand and $6,605 thousand as other current assets as of March 31, 2023 and December 31, 2022, respectively. COVID-19 Pandemic In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, and governmental authorities throughout the world implemented numerous restrictions and containment measures that resulted in rapidly changing market and economic conditions. Many of these restrictions and containment measures have since been lifted or scaled back. The Company will continue to monitor and evaluate the nature and scope of the impact of the COVID-19 pandemic to its business, consolidated results of operations, and financial condition, and may take actions it deems necessary or appropriate to respond in the event of a reemergence of the pandemic. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events Derivative contracts In April 2023, the Company and SC entered into derivative contract of zero cost collar for December 2023. The total notional amounts are $5,000 thousand. In April 2023, the Company and NFIK entered into derivative contracts of zero cost collars for the period from January 2024 to June 2024. The total notional amounts are $18,000 thousand. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Business, Basis of Presentation and Significant Accounting Policies [Abstract] | |
Business | Business Magnachip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, computing, industrial and automotive applications. The Company’s standard products business includes its Display Solutions and Power Solutions business lines. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and a wide range of applications including smartphones, TVs, automotive and IT applications such as monitors, notebook PCs, tablet PCs as well as AR/VRs. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer, computing, servers, automotive, and industrial applications. On September 1, 2020, the Company completed the sale of the Company’s Foundry Services Group business and its fabrication facility located in Cheongju, Korea, known as “Fab 4”. Following the consummation of the sale, and for up to three years, the Company is expected to provide transitional foundry services associated with its fabrication facility located in Gumi, Korea, known as “Fab 3”, at an agreed upon cost plus mark-up (the “Transitional Fab 3 Foundry Services”). |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). These interim consolidated financial statements include normal recurring adjustments and the elimination of all intercompany accounts and transactions which are, in the opinion of management, necessary to provide a fair statement of the Company’s financial condition and results of operations for the periods presented. These interim consolidated financial statements are presented in accordance with Accounting Standards Codification (“ASC”) 270, “Interim Reporting” and, accordingly, do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements, except for the changes below. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for a full year or for any other periods. The December 31, 2022 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. There have been no material changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2023 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Summary of Inventories | Inventories as of March 31, 2023 and December 31, 2022 consist of the following (in thousands): March 31, 2023 December 31, 2022 Finished goods $ 5,523 $ 6,799 Semi-finished goods and work-in-process 39,427 40,265 Raw materials 6,351 7,460 Materials in-transit — 36 Less: inventory reserve (14,941 ) (14,677 ) Inventories, net $ 36,360 $ 39,883 |
Changes in Inventory Reserve | Changes in inventory reserve for the three months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Beginning balance $ (14,677 ) $ (5,730 ) Change in reserve Inventory reserve charged to costs of sales (2,584 ) (1,607 ) Sale of previously reserved inventory 1,476 1,452 (1,108 ) (155 ) Write off 415 211 Translation adjustments 429 119 Ending balance $ (14,941 ) $ (5,555 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of March 31, 2023 and December 31, 2022 are comprised of the following (in thousands): March 31, 2023 December 31, 2022 Buildings and related structures $ 24,214 $ 24,780 Machinery and equipment 134,843 137,666 Finance lease right-of-use assets 707 389 Others 33,529 33,890 193,293 196,725 Less: accumulated depreciation (102,768 ) (101,502 ) Land 12,670 13,034 Construction in progress 1,373 2,490 Property, plant and equipment, net $ 104,568 $ 110,747 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Intangible Assets [Abstract] | |
Summary of Intangible Assets | Intangible assets as of March 31, 2023 and December 31, 2022 are comprised of the following (in thousands): March 31, 2023 Gross amount Accumulated amortization Net amount Intellectual property assets $ 8,916 $ (7,132 ) $ 1,784 Intangible assets $ 8,916 $ (7,132 ) $ 1,784 December 31, 2022 Gross amount Accumulated amortization Net amount Intellectual property assets $ 9,111 $ (7,181 ) $ 1,930 Intangible assets $ 9,111 $ (7,181 ) $ 1,930 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheets information related to leases as of March 31, 2023 and December 31, 2022 are as follows (in thousands): Leases Classification March 31, 2023 December 31, 2022 Assets Operating lease Operating lease right-of-use assets $ 5,413 $ 5,265 Finance lease Property, plant and equipment, net 436 143 Total lease assets $ 5,849 $ 5,408 Liabilities Current Operating Operating lease liabilities $ 1,622 $ 1,397 Finance Other current liabilities 90 90 Non-current Operating Non-current operating lease liabilities 3,996 4,091 Finance Other non-current liabilities 364 63 Total lease liabilities $ 6,072 $ 5,641 |
Lease, Cost | The following table presents the weighted average remaining lease term and discount rate: March 31, 2023 December 31, 2022 Weighted average remaining lease term Operating leases 3.4 years 3.7 years Finance leases 4.1 years 2.4 years Weighted average discount rate Operating leases 6.6 % 6.6 % Finance leases 7.7 % 7.6 % |
Other Lease Information | The components of lease cost included in the Company’s consolidated statements of operations, are as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Operating lease cost $ 555 $ 569 Finance lease cost Amortization of right-of-use assets 32 16 Interest on lease liabilities 7 2 Total lease cost $ 594 $ 587 The above table does not include an immaterial cost of short-term leases for the three months ended March 31, 2023 and 2022. Other lease information is as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 567 $ 569 Operating cash flows from finance leases 7 2 Financing cash flows from finance leases 24 16 |
Schedule of Future Lease Payments | The aggregate future lease payments for operating and finance leases as of March 31, 2023 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2023 $ 1,448 $ 91 2024 1,925 122 2025 1,419 121 2026 937 108 2027 644 95 Total future lease payments 6,373 537 Less: Imputed interest (755 ) (83 ) Present value of future payments $ 5,618 $ 454 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of March 31, 2023 and December 31, 2022 are comprised of the following (in thousands): March 31, 2023 December 31, 2022 Payroll, benefits and related taxes, excluding severance benefits $ 14,475 $ 7,620 Withholding tax attributable to intercompany interest income 473 43 Outside service fees 1,625 1,642 Others 552 383 Accrued expenses $ 17,125 $ 9,688 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Financial Instruments [Abstract] | |
Details of Derivative Contracts | Details of the zero cost collar contracts as of March 31, 2023 are as follows (in thousands): Date of transaction Total notional amount Month of settlement January 04, 2022 $ 15,000 April 2023 June 2023 March 07, 2022 $ 24,000 July 2023 December 2023 April 27, 2022 $ 33,000 April 2023 December 2023 March 08, 2023 $ 18,000 July 2023 December 2023 Details of the zero cost collar contracts as of December 31, 2022 are as follows (in thousands): Date of transaction Total notional amount Month of settlement January 04, 2022 $ 30,000 January 2023 June 2023 March 07, 2022 $ 24,000 July 2023 December 2023 April 27, 2022 $ 42,000 January 2023 December 2023 |
Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities | The fair values of the Company’s outstanding zero cost collar contracts recorded as assets and liabilities as of March 31, 2023 and December 31, 2022 are as follows (in thousands): Derivatives designated as hedging instruments: March 31, 2023 December 31, 2022 Asset Derivatives: Zero cost collars Other current assets $ 2 $ — Liability Derivatives: Zero cost collars Other current liabilities $ 2,641 $ 2,015 |
Offsetting of Derivative Assets and Liabilities | Offsetting of derivative assets and liabilities as of March 31, 2023 is as follows (in thousands): Gross amounts of recognized Assets/liabilities Gross amounts offset in the balance sheets Net amounts of Assets/liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount As of March 31, 2023 Financial instruments Cash collateral pledged Asset Derivatives: Zero cost collars $ 2 $ — $ 2 $ — $ — $ 2 Liability Derivatives: Zero cost collars $ 2,641 $ — $ 2,641 $ — $ (1,820 ) $ 821 Offsetting of derivative liabilities as of December 31, 2022 is as follows (in thousands): Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount As of December 31, 2022 Financial instruments Cash collateral pledged Liability Derivatives: Zero cost collars $ 2,015 $ — $ 2,015 $ — $ (1,940 ) $ 75 |
Impact of Derivative Instruments on Consolidated Statement of Operations | The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Loss Recognized in AOCI on Derivatives Location/Amount of Loss Reclassified from AOCI Into Statement of Operations Location/Amount of Loss Recognized in Statement of Operations on Derivatives Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2023 2022 2023 2022 2023 2022 Zero cost collars $ (1,135 ) $ (1,264 ) Net sales $ (603 ) $ (762 ) Other income, net $ (54 ) $ (129 ) $ (1,135 ) $ (1,264 ) $ (603 ) $ (762 ) $ (54 ) $ (129 ) |
Summary Of Cash Deposits | This cash deposit is recorded as hedge collateral on the consolidated balance sheets. Cash deposits as of March 31, 2023 and December 31, 2022 are as follows (in thousands): Counterparty March 31, 2023 December 31, 2022 SC $ 1,000 $ 1,000 Total $ 1,000 $ 1,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | As of March 31, 2023, the following table represents the Company’s assets and liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value March 31, 2023 Fair Value Measurement March 31, 2023 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Derivative assets (other current assets) $ 2 $ 2 — $ 2 — Liabilities: Derivative liabilities (other current liabilities) $ 2,641 $ 2,641 — $ 2,641 — As of December 31, 2022, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value December 31, 2022 Fair Value Measurement December 31, 2022 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilities (other current liabilities) $ 2,015 $ 2,015 — $ 2,015 — |
Accrued Severance Benefits (Tab
Accrued Severance Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Severance Benefits [Abstract] | |
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Beginning balance $ 48,496 $ 51,567 Provisions 2,330 1,670 Severance payments (871 ) (1,389 ) Translation adjustments (1,381 ) (1,077 ) 48,574 50,771 Less: Cumulative contributions to severance insurance deposit accounts (24,747 ) (17,954 ) The National Pension Fund (40 ) (50 ) Group severance insurance plan (179 ) (195 ) Accrued severance benefits, net $ 23,608 $ 32,572 |
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its non-executive employees upon their normal retirement age (in thousands): Severance benefit Remainder of 2023 $ 634 2024 906 2025 1,502 2026 1,829 2027 1,718 2028 3,699 2029 – 2033 21,043 |
Geographic and Other Informat_2
Geographic and Other Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Geographic and Other Information [Abstract] | |
Schedule of Operating Segments | The following sets forth information relating to the single operating segment (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Revenues Standard products business Display Solutions $ 10,841 $ 29,185 Power Solutions 40,673 64,825 Total standard products business $ 51,514 $ 94,010 Transitional Fab 3 foundry services 5,491 10,083 Total revenues $ 57,005 $ 104,093 Three Months Ended March 31, 2023 March 31, 2022 Gross Profit Standard products business $ 14,202 $ 37,930 Transitional Fab 3 foundry services (2,108 ) 1,066 Total gross profit $ 12,094 $ 38,996 |
Net Sales by Region, Based on Location of Products are Billed | The following is a summary of net sales—standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended March 31, 2023 March 31, 2022 Korea $ 16,496 $ 31,030 Asia Pacific (other than Korea) 31,901 58,260 United States 1,045 2,864 Europe 2,072 1,856 Total $ 51,514 $ 94,010 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following as of March 31, 2023 and December 31, 2022, respectively (in thousands): March 31, 2023 December 31, 2022 Foreign currency translation adjustments $ (13,236 ) $ (11,328 ) Derivative adjustments (1,757 ) (1,225 ) Total $ (14,993 ) $ (12,553 ) |
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31 2023 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (11,328 ) $ (1,225 ) $ (12,553 ) Other comprehensive loss before reclassifications (1,908 ) (1,135 ) (3,043 ) Amounts reclassified from accumulated other comprehensive loss — 603 603 Net current-period other comprehensive loss (1,908 ) (532 ) (2,440 ) Ending balance $ (13,236 ) $ (1,757 ) $ (14,993 ) Three Months Ended March 31 2022 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (770 ) $ (1,460 ) $ (2,230 ) Other comprehensive loss before reclassifications (3,045 ) (1,264 ) (4,309 ) Amounts reclassified from accumulated other comprehensive loss — 762 762 Net current-period other comprehensive loss (3,045 ) (502 ) (3,547 ) Ending balance $ (3,815 ) $ (1,962 ) $ (5,777 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share | The following table illustrates the computation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 March 31, 2022 (In thousands of U.S. dollars, except share data) Basic Earnings (Loss) per Share Net income (loss) $ (21,470 ) $ 9,528 Basic weighted average common stock outstanding 43,390,832 45,603,208 Basic earnings (loss) per share $ (0.49 ) $ 0.21 Diluted Earnings (Loss) per Share Net income (loss) $ (21,470 ) $ 9,528 Basic weighted average common stock outstanding 43,390,832 45,603,208 Net effect of dilutive equity awards — 1,090,086 Diluted weighted average common stock outstanding 43,390,832 46,693,294 Diluted earnings (loss) per share $ (0.49 ) $ 0.20 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Common Share | The following outstanding instruments were excluded from the computation of diluted earnings (loss) per share, as they have an anti-dilutive effect on the calculation: Three Months Ended March 31, 2023 March 31, 2022 Options 1,116,158 130,000 Restricted Stock Units 1,434,827 — |
Inventories, Summary of Invento
Inventories, Summary of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||||
Finished goods | $ 5,523 | $ 6,799 | ||
Semi-finished goods and work-in-process | 39,427 | 40,265 | ||
Raw materials | 6,351 | 7,460 | ||
Materials in-transit | 0 | 36 | ||
Less: inventory reserve | (14,941) | (14,677) | $ (5,555) | $ (5,730) |
Inventories, net | $ 36,360 | $ 39,883 |
Inventories, Changes in Invento
Inventories, Changes in Inventory Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in Inventory Reserve [Abstract] | ||
Beginning balance | $ (14,677) | $ (5,730) |
Change in reserve [Abstract] | ||
Inventory reserve charged to costs of sales | (2,584) | (1,607) |
Sale of previously reserved inventory | 1,476 | 1,452 |
Change in reserve | (1,108) | (155) |
Write off | 415 | 211 |
Translation adjustments | 429 | 119 |
Ending balance | $ (14,941) | $ (5,555) |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | $ 193,293 | $ 196,725 | |
Less: accumulated depreciation | (102,768) | (101,502) | |
Land | 12,670 | 13,034 | |
Construction in progress | 1,373 | 2,490 | |
Property, plant and equipment, net | 104,568 | 110,747 | |
Depreciation expenses | 4,193 | $ 3,706 | |
Buildings and Related Structures [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 24,214 | 24,780 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 134,843 | 137,666 | |
Finance Lease Right-of-Use Assets [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 707 | 389 | |
Others [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | $ 33,529 | $ 33,890 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Intangible Assets [Abstract] | |||
Gross amount | $ 8,916 | $ 9,111 | |
Accumulated amortization | (7,132) | (7,181) | |
Net amount | 1,784 | 1,930 | |
Amortization expense for intangible assets | 164 | $ 185 | |
Intellectual Property Assets [Member] | |||
Intangible Assets [Abstract] | |||
Gross amount | 8,916 | 9,111 | |
Accumulated amortization | (7,132) | (7,181) | |
Net amount | $ 1,784 | $ 1,930 |
Leases, Summary (Details)
Leases, Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Assets [Abstract] | ||
Operating lease | $ 5,413 | $ 5,265 |
Total lease assets | 5,849 | 5,408 |
Current [Abstract] | ||
Operating | 1,622 | 1,397 |
Non-current [Abstract] | ||
Operating | 3,996 | 4,091 |
Total lease liabilities | $ 6,072 | 5,641 |
Maximum [Member] | ||
Operating and Finance Leases [Abstract] | ||
Remaining lease term | 5 years | |
Minimum [Member] | ||
Operating and Finance Leases [Abstract] | ||
Remaining lease term | 1 year | |
Operating Lease Right Of Use Assets [Member] | ||
Assets [Abstract] | ||
Operating lease | $ 5,413 | 5,265 |
Property, Plant and Equipment, Net [Member] | ||
Assets [Abstract] | ||
Finance lease | 436 | 143 |
Current Operating Lease Liabilities [Member] | ||
Current [Abstract] | ||
Operating | 1,622 | 1,397 |
Other Current Liabilities [Member] | ||
Current [Abstract] | ||
Finance | $ 90 | $ 90 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Non Current Operating Lease Liabilities [Member] | ||
Non-current [Abstract] | ||
Operating | $ 3,996 | $ 4,091 |
Other Noncurrent Liabilities [Member] | ||
Non-current [Abstract] | ||
Finance | $ 364 | $ 63 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Leases, Weighted Average Remain
Leases, Weighted Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Weighted average remaining lease term [Abstract] | ||
Operating leases | 3 years 4 months 24 days | 3 years 8 months 12 days |
Finance leases | 4 years 1 month 6 days | 2 years 4 months 24 days |
Weighted average discount rate [Abstract] | ||
Operating leases | 6.60% | 6.60% |
Finance leases | 7.70% | 7.60% |
Leases, Components of Lease Cos
Leases, Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 555 | $ 569 |
Finance lease cost [Abstract] | ||
Amortization of right-of-use assets | 32 | 16 |
Interest on lease liabilities | 7 | 2 |
Total lease cost | $ 594 | $ 587 |
Leases, Other Lease Information
Leases, Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | ||
Operating cash flows from operating leases | $ 567 | $ 569 |
Operating cash flows from finance leases | 7 | 2 |
Financing cash flows from finance leases | $ 24 | $ 16 |
Leases, Aggregate Future Lease
Leases, Aggregate Future Lease Payment (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating Leases [Abstract] | |
Remainder of 2023 | $ 1,448 |
2024 | 1,925 |
2025 | 1,419 |
2026 | 937 |
2027 | 644 |
Total future lease payments | 6,373 |
Less: Imputed interest | (755) |
Present value of future payments | 5,618 |
Finance Leases [Abstract] | |
Remainder of 2023 | 91 |
2024 | 122 |
2025 | 121 |
2026 | 108 |
2027 | 95 |
Total future lease payments | 537 |
Less: Imputed interest | (83) |
Present value of future payments | $ 454 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accrued Expenses [Abstract] | |||
Payroll, benefits and related taxes, excluding severance benefits | $ 14,475 | $ 7,620 | |
Withholding tax attributable to intercompany interest income | 473 | 43 | |
Outside service fees | 1,625 | 1,642 | |
Others | 552 | 383 | |
Accrued expenses | 17,125 | $ 9,688 | |
Early termination charges | $ 8,449 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Zero Cost Collar One [Member] | ||
Zero Cost Collar Contracts [Abstract] | ||
Date of transaction | Jan. 04, 2022 | Jan. 04, 2022 |
Total notional amount | $ 15,000 | $ 30,000 |
Month of settlement, start | 2023-04 | 2023-01 |
Month of settlement, end | 2023-06 | 2023-06 |
Zero Cost Collar Two [Member] | ||
Zero Cost Collar Contracts [Abstract] | ||
Date of transaction | Mar. 07, 2022 | Mar. 07, 2022 |
Total notional amount | $ 24,000 | $ 24,000 |
Month of settlement, start | 2023-07 | 2023-07 |
Month of settlement, end | 2023-12 | 2023-12 |
Zero Cost Collar Three [Member] | ||
Zero Cost Collar Contracts [Abstract] | ||
Date of transaction | Apr. 27, 2022 | Apr. 27, 2022 |
Total notional amount | $ 33,000 | $ 42,000 |
Month of settlement, start | 2023-04 | 2023-01 |
Month of settlement, end | 2023-12 | 2023-12 |
Zero Cost Collar Four [Member] | ||
Zero Cost Collar Contracts [Abstract] | ||
Date of transaction | Mar. 08, 2023 | |
Total notional amount | $ 18,000 | |
Month of settlement, start | 2023-07 | |
Month of settlement, end | 2023-12 |
Derivative Financial Instrume_4
Derivative Financial Instruments, Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities (Details) - Zero Cost Collars [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Asset Derivatives [Abstract] | ||
Derivative asset | $ 2 | $ 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Liability Derivatives [Abstract] | ||
Derivative liabilities | $ 2,641 | $ 2,015 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Derivative Financial Instrume_5
Derivative Financial Instruments, Offsetting of Derivative Assets and Liabilities (Details) - Zero Cost Collars [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Asset Derivatives [Abstract] | ||
Gross amounts of recognized assets | $ 2 | |
Gross amounts offset in the balance sheets | 0 | |
Net amounts of assets presented in the balance sheets | 2 | $ 0 |
Gross amounts not offset in the balance sheets Financial instruments | 0 | |
Gross amounts not offset in the balance sheets Cash collateral pledged | 0 | |
Net amount | 2 | |
Liability Derivatives [Abstract] | ||
Gross amounts of recognized liabilities | 2,641 | 2,015 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts of liabilities presented in the balance sheets | 2,641 | 2,015 |
Gross amounts not offset in the balance sheets, Financial instruments | 0 | 0 |
Gross amounts not offset in the balance sheets, Cash collateral pledged | (1,820) | (1,940) |
Net amount | $ 821 | $ 75 |
Derivative Financial Instrume_6
Derivative Financial Instruments, Impact of Derivative Instruments on Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivatives in ASC 815 Cash Flow Hedging Relationships [Abstract] | ||
Location/Amount of Loss Reclassified from AOCI Into Statement of Operations | $ 603 | $ 762 |
Estimated amount reclassified from accumulated other comprehensive loss into loss | 1,757 | |
Cash Flow Hedging [Member] | ||
Derivatives in ASC 815 Cash Flow Hedging Relationships [Abstract] | ||
Amount of Loss Recognized in AOCI on Derivatives | (1,135) | (1,264) |
Location/Amount of Loss Reclassified from AOCI Into Statement of Operations | (603) | (762) |
Cash Flow Hedging [Member] | Other Income, Net [Member] | ||
Derivatives in ASC 815 Cash Flow Hedging Relationships [Abstract] | ||
Location/Amount of Loss Recognized in Statement of Operations on Derivatives | (54) | (129) |
Zero Cost Collars [Member] | Cash Flow Hedging [Member] | ||
Derivatives in ASC 815 Cash Flow Hedging Relationships [Abstract] | ||
Amount of Loss Recognized in AOCI on Derivatives | (1,135) | (1,264) |
Location/Amount of Loss Reclassified from AOCI Into Statement of Operations | $ (603) | $ (762) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues |
Zero Cost Collars [Member] | Cash Flow Hedging [Member] | Other Income, Net [Member] | ||
Derivatives in ASC 815 Cash Flow Hedging Relationships [Abstract] | ||
Location/Amount of Loss Recognized in Statement of Operations on Derivatives | $ (54) | $ (129) |
Derivative Financial Instrume_7
Derivative Financial Instruments, Cash Deposits (Details) - Zero Cost Collar and Forward Contracts [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash Deposits [Abstract] | ||
Cash deposits | $ 1,000 | $ 1,000 |
NFIK [Member] | ||
Additional Cash Collateral [Abstract] | ||
Threshold amount of cash collateral | 500 | |
Threshold additional amount of cash collateral | 1,820 | 1,840 |
Termination provisions for cash and cash equivalents | 30,000 | |
SC [Member] | ||
Cash Deposits [Abstract] | ||
Cash deposits | 1,000 | 1,000 |
Additional Cash Collateral [Abstract] | ||
Threshold amount of cash collateral | $ 500 | |
Threshold additional amount of cash collateral | $ 100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Derivative asset | $ 2 | |
Liabilities [Abstract] | ||
Derivative liabilities | 2,641 | $ 2,015 |
Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Derivative asset | 2 | |
Liabilities [Abstract] | ||
Derivative liabilities | 2,641 | 2,015 |
Quoted Prices in Active Markets for Identical Liability (Level 1) [Member] | ||
Assets [Abstract] | ||
Derivative asset | 0 | |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Derivative asset | 2 | |
Liabilities [Abstract] | ||
Derivative liabilities | 2,641 | 2,015 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Derivative asset | 0 | |
Liabilities [Abstract] | ||
Derivative liabilities | $ 0 | $ 0 |
Accrued Severance Benefits, Cha
Accrued Severance Benefits, Changes in Accrued Severance Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accrued Severance Benefits [Abstract] | |||
Percentage of employees eligible for severance benefits | 97% | ||
Beginning balance | $ 48,496 | $ 51,567 | |
Provisions | 2,330 | 1,670 | |
Severance payments | (871) | (1,389) | |
Translation adjustments | (1,381) | (1,077) | |
Ending balance | 48,574 | 50,771 | |
Less: Cumulative contributions to severance insurance deposit accounts | (24,747) | (17,954) | |
The National Pension Fund | (40) | (50) | |
Group severance insurance plan | (179) | (195) | |
Accrued severance benefits, net | $ 23,608 | $ 32,572 | $ 23,121 |
Accrued Severance Benefits, Fut
Accrued Severance Benefits, Future Benefits Payments to Employees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Future Benefits to Non-Executive Employees [Abstract] | |
Remainder of 2023 | $ 634 |
2024 | 906 |
2025 | 1,502 |
2026 | 1,829 |
2027 | 1,718 |
2028 | 3,699 |
2029 - 2033 | $ 21,043 |
Retirement age of employees | 60 years |
Korea [Member] | Minimum [Member] | |
Future Benefits to Non-Executive Employees [Abstract] | |
Korea's mandatory retirement age | 60 years |
Early Termination Charges (Deta
Early Termination Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Early Termination Charges [Abstract] | ||
Minimum requisite period of service for voluntary resignation program | 20 years | |
Early termination charges | $ 8,449 | $ 0 |
Foreign Currency Loss, Net (Det
Foreign Currency Loss, Net (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Foreign Currency Loss, Net [Abstract] | ||
Intercompany loan balances | $ 301,860 | $ 310,988 |
Exchange rates using first base rate | 1,303.8 | 1,267.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Taxes [Abstract] | ||
Income tax expense (benefit) | $ (1,227) | $ 3,483 |
Geographic and Other Informat_3
Geographic and Other Information, Schedule of Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Geographic and Other Information [Abstract] | ||
Total revenues | $ 57,005 | $ 104,093 |
Total gross profit | 12,094 | 38,996 |
Standard Products Business [Member] | ||
Geographic and Other Information [Abstract] | ||
Total revenues | 51,514 | 94,010 |
Total gross profit | 14,202 | 37,930 |
Fab 3 Foundry Services [Member] | ||
Geographic and Other Information [Abstract] | ||
Total revenues | 5,491 | 10,083 |
Total gross profit | (2,108) | 1,066 |
Operating Segments [Member] | Standard Products Business [Member] | ||
Geographic and Other Information [Abstract] | ||
Total revenues | 51,514 | 94,010 |
Operating Segments [Member] | Standard Products Business [Member] | Display Solutions [Member] | ||
Geographic and Other Information [Abstract] | ||
Total revenues | 10,841 | 29,185 |
Operating Segments [Member] | Standard Products Business [Member] | Power Solutions [Member] | ||
Geographic and Other Information [Abstract] | ||
Total revenues | $ 40,673 | $ 64,825 |
Geographic and Other Informat_4
Geographic and Other Information, Net Sales by Region, Based on Location of Products are Billed (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Net Sales Based on Location of Products Business [Abstract] | |||
Total revenues | $ 57,005 | $ 104,093 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Top Customer One [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 22.30% | 25.10% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Top Customer Two [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 14.30% | 15.20% | |
Standard Products Business [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Total revenues | $ 51,514 | 94,010 | |
Standard Products Business [Member] | Korea [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Total revenues | 16,496 | 31,030 | |
Standard Products Business [Member] | Asia Pacific (Other Than Korea) [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Total revenues | 31,901 | 58,260 | |
Standard Products Business [Member] | United States [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Total revenues | 1,045 | 2,864 | |
Standard Products Business [Member] | Europe [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Total revenues | $ 2,072 | $ 1,856 | |
Standard Products Business [Member] | Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 71% | 72% | |
Standard Products Business [Member] | Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer One [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 16.40% | 25.50% | |
Standard Products Business [Member] | Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 13.70% | 12.90% | |
Standard Products Business [Member] | Geographic Concentration Risk [Member] | Net Sales [Member] | CHINA, HONG KONG [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 57.90% | 71.10% | |
Standard Products Business [Member] | Geographic Concentration Risk [Member] | Net Sales [Member] | VIET NAM [Member] | |||
Net Sales Based on Location of Products Business [Abstract] | |||
Concentration risk, percentage | 17.80% | 14.40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Foreign currency translation adjustments | $ (13,236) | $ (11,328) |
Derivative adjustments | (1,757) | (1,225) |
Total | $ (14,993) | $ (12,553) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, Changes in Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | $ 428,153 | $ 452,762 |
Total other comprehensive loss | (2,440) | (3,547) |
Ending balance | 393,353 | 461,162 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (11,328) | (770) |
Other comprehensive loss before reclassifications | (1,908) | (3,045) |
Amounts reclassified from accumulated other comprehensive loss (income) | 0 | 0 |
Total other comprehensive loss | (1,908) | (3,045) |
Ending balance | (13,236) | (3,815) |
Derivative Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (1,225) | (1,460) |
Other comprehensive loss before reclassifications | (1,135) | (1,264) |
Amounts reclassified from accumulated other comprehensive loss (income) | 603 | 762 |
Total other comprehensive loss | (532) | (502) |
Ending balance | (1,757) | (1,962) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (12,553) | (2,230) |
Other comprehensive loss before reclassifications | (3,043) | (4,309) |
Amounts reclassified from accumulated other comprehensive loss (income) | 603 | 762 |
Total other comprehensive loss | (2,440) | (3,547) |
Ending balance | $ (14,993) | $ (5,777) |
Stock Repurchases, Accelerated
Stock Repurchases, Accelerated Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 | Dec. 22, 2021 | Dec. 21, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Aug. 31, 2022 | |
Stock Repurchases Program [Abstract] | |||||||
Accelerated stock repurchase | $ 0 | ||||||
Accelerated share repurchases, settlement (payment) or receipt | $ 37,500 | ||||||
Accelerated share repurchase program adjustment (in shares) | 994,695 | ||||||
Aggregate purchase price of shares | $ 20,073 | ||||||
Sale of stock issue price (in dollars per share) | $ 20.18 | ||||||
Additional Paid-In Capital [Member] | |||||||
Stock Repurchases Program [Abstract] | |||||||
Accelerated stock repurchase | 17,217 | $ 17,427 | |||||
Treasury Stock [Member] | |||||||
Stock Repurchases Program [Abstract] | |||||||
Accelerated stock repurchase | (17,217) | ||||||
Accelerated Stock Repurchase Program [Member] | |||||||
Stock Repurchases Program [Abstract] | |||||||
Accelerated stock repurchase | $ 37,500 | ||||||
Accelerated share repurchases, settlement (payment) or receipt | $ 37,500 | $ 37,500 | |||||
Accelerated Stock Repurchase Program [Member] | Treasury Stock [Member] | Reclassified as Treasury Stock from Additional Paid-In-Capital [Member] | |||||||
Stock Repurchases Program [Abstract] | |||||||
Accelerated share repurchase program adjustment (in shares) | 1,031,576 | ||||||
Aggregate purchase price of shares | $ 17,217 | $ 17,217 | |||||
Sale of stock issue price (in dollars per share) | $ 16.69 | ||||||
Stock Repurchase Program [Member] | |||||||
Stock Repurchases Program [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 75,000 | $ 87,500 |
Stock Repurchases, Expanded Sto
Stock Repurchases, Expanded Stock Repurchase Program (Details) - Stock Repurchase Program [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Dec. 21, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock repurchase program, authorized amount | $ 87,500 | $ 75,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 50,000 | |||
Stock repurchased (in shares) | 1,238,472 | 1,235,650 | ||
Aggregate purchase price | $ 11,887 | $ 12,511 | ||
Sale of aggregate purchase price (in dollars per share) | $ 9.6 | $ 10.13 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic Earnings (Loss) per Share [Abstract] | ||
Net income (loss) | $ (21,470) | $ 9,528 |
Basic weighted average common stock outstanding (in shares) | 43,390,832 | 45,603,208 |
Basic earnings (loss) per share (in dollars per share) | $ (0.49) | $ 0.21 |
Diluted Earnings (Loss) per Share [Abstract] | ||
Basic weighted average common stock outstanding (in shares) | 43,390,832 | 45,603,208 |
Net effect of dilutive equity awards (in shares) | 0 | 1,090,086 |
Diluted weighted average common stock outstanding (in shares) | 43,390,832 | 46,693,294 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.49) | $ 0.2 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Common Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Options [Member] | ||
Computation of Diluted Earnings (Loss) Per Share [Abstract] | ||
Outstanding units and warrants excluded from computation of diluted earnings (loss) per share/unit (in shares) | 1,116,158 | 130,000 |
Restricted Stock Units [Member] | ||
Computation of Diluted Earnings (Loss) Per Share [Abstract] | ||
Outstanding units and warrants excluded from computation of diluted earnings (loss) per share/unit (in shares) | 1,434,827 | 0 |
Merger Agreement (Details)
Merger Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 20, 2021 | Dec. 31, 2021 | Apr. 06, 2023 | Mar. 31, 2023 | Aug. 05, 2022 | Apr. 04, 2022 | |
Business combination, description [Abstract] | ||||||
Merger termination fee | $ 70,200 | |||||
Proceed from termination cost | $ 51,000 | |||||
Secures deferred merger termination fee | $ 19,200 | |||||
Subsequent Event [Member] | ||||||
Business combination, description [Abstract] | ||||||
Termination agreement amount received | $ 1,800 | |||||
Termination Agreement [Member] | ||||||
Business combination, description [Abstract] | ||||||
Termination agreement amount received | $ 3,000 | $ 14,400 | ||||
Termination agreement outstanding amount | $ 1,800 | $ 4,800 | ||||
Letter Agreement [Member] | Due on or Before March 31, 2023 [Member] | ||||||
Business combination, description [Abstract] | ||||||
Letter agreement outstanding amount | $ 1,800 | |||||
Other Receivable [Member] | ||||||
Business combination, description [Abstract] | ||||||
Secures deferred merger termination fee | $ 19,200 | |||||
Other Receivable [Member] | Letter Agreement [Member] | ||||||
Business combination, description [Abstract] | ||||||
Secures deferred merger termination fee | $ 1,800 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Payments to Suppliers and Employees [Abstract] | ||
Prepayments to suppliers | $ 4,372 | $ 6,605 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Zero Cost Collar and Forward Contracts [Member] $ in Thousands | Apr. 30, 2023 USD ($) |
SC [Member] | |
Derivative Contracts [Abstract] | |
Derivative notional amount | $ 5,000 |
NFIK [Member] | |
Derivative Contracts [Abstract] | |
Derivative notional amount | $ 18,000 |