Magnachip Semiconductor (MX) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	MX
Entity Registrant Name	MAGNACHIP SEMICONDUCTOR Corp
Entity Central Index Key	1,325,702
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,998,379

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 75,428	$ 90,882
Restricted cash (Note 17)	6,118
Accounts receivable, net	66,013	63,498
Inventories, net	72,056	57,619
Other receivables (Note 17)	5,931	31,932
Prepaid expenses	12,860	7,075
Hedge collateral	2,100	6,000
Other current assets	4,405	3,228
Total current assets	244,911	260,234
Property, plant and equipment, net	195,553	191,985
Intangible assets, net	3,229	2,629
Long-term prepaid expenses	12,435	12,117
Deferred income tax assets	249	238
Other non-current assets	7,038	6,897
Total assets	463,415	474,100
Current liabilities
Accounts payable	66,514	55,476
Other accounts payable	12,332	10,961
Accrued expenses	58,284	76,721
Deferred revenue	12,780	10,060
Deposits received		8,165
Other current liabilities	2,920	5,128
Total current liabilities	152,830	166,511
Long-term borrowings, net	220,902	220,375
Accrued severance benefits, net	142,846	134,148
Other non-current liabilities	11,758	15,396
Total liabilities	528,336	536,430
Commitments and Contingencies (Note 17)
Stockholders' equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 41,566,019 shares issued and 34,987,254 outstanding at September 30, 2016 and 41,147,707 shares issued and 34,568,942 outstanding at December 31, 2015	415	411
Additional paid-in capital	129,083	124,618
Accumulated deficit	(76,035)	(96,210)
Treasury stock, 6,578,765 shares at September 30, 2016 and December 31, 2015	(90,918)	(90,918)
Accumulated other comprehensive loss	(27,466)	(231)
Total stockholders' deficit	(64,921)	(62,330)
Total liabilities and stockholders' equity	$ 463,415	$ 474,100

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	41,566,019	41,147,707
Common stock, shares outstanding	34,987,254	34,568,942
Treasury stock, shares	6,578,765	6,578,765

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net sales	$ 192,296	$ 154,382	$ 507,507	$ 481,282
Cost of sales	153,157	119,683	397,370	376,320
Gross profit	39,139	34,699	110,137	104,962
Operating expenses
Selling, general and administrative expenses	20,082	22,107	65,982	75,725
Research and development expenses	18,439	20,450	54,432	64,541
Restructuring gain			(7,785)
Total operating expenses	38,521	42,557	112,629	140,266
Operating income (loss)	618	(7,858)	(2,492)	(35,304)
Interest expense	(4,055)	(4,075)	(12,185)	(12,187)
Foreign currency gain (loss), net	33,174	(44,139)	34,268	(59,611)
Other income, net	887	256	2,429	1,162
Income (loss) before income taxes	30,624	(55,816)	22,020	(105,940)
Income tax expenses	758	1,250	1,845	1,781
Net income (loss)	$ 29,866	$ (57,066)	$ 20,175	$ (107,721)
Income (loss) per common share-
Basic	$ 0.86	$ (1.65)	$ 0.58	$ (3.14)
Diluted	$ 0.85	$ (1.65)	$ 0.58	$ (3.14)
Weighted average number of shares-
Basic	34,849,805	34,664,246	34,755,276	34,273,265
Diluted	35,302,706	34,664,246	35,077,315	34,273,265

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 29,866	$ (57,066)	$ 20,175	$ (107,721)
Other comprehensive income (loss)
Foreign currency translation adjustments	(27,340)	37,583	(27,193)	50,762
Derivative adjustments
Fair valuation of derivatives	(83)	(2,869)	(42)	(4,286)
Reclassification adjustment for loss on derivatives included in net income (loss)		1,579		1,094
Total other comprehensive income (loss)	(27,423)	36,293	(27,235)	47,570
Total comprehensive income (loss)	$ 2,443	$ (20,773)	$ (7,060)	$ (60,151)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Outstanding [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance, beginning at Dec. 31, 2014	$ (18,502)		$ 406	$ 118,419	$ (11,343)	$ (90,918)	$ (35,066)
Balance, Shares beginning at Dec. 31, 2014		34,056,468
Stock-based compensation	2,370			2,370
Exercise of stock options	3,434		5	3,429
Exercise of stock options, Shares		512,074
Other comprehensive income (loss), net	47,570						47,570
Net income (loss)	(107,721)				(107,721)
Balance, ending at Sep. 30, 2015	(72,849)		411	124,218	(119,064)	(90,918)	12,504
Balance, Shares ending at Sep. 30, 2015		34,568,542
Balance, beginning at Jun. 30, 2015							(23,789)
Other comprehensive income (loss), net	36,293						36,293
Net income (loss)	(57,066)
Balance, ending at Sep. 30, 2015	(72,849)		411	124,218	(119,064)	(90,918)	12,504
Balance, Shares ending at Sep. 30, 2015		34,568,542
Balance, beginning at Dec. 31, 2015	$ (62,330)		411	124,618	(96,210)	(90,918)	(231)
Balance, Shares beginning at Dec. 31, 2015	34,568,942	34,568,942
Stock-based compensation	$ 2,966			2,966
Exercise of stock options	1,503		3	1,500
Exercise of stock options, Shares		255,500
Settlement of restricted stock units			1	(1)
Settlement of restricted stock units, Shares		162,812
Other comprehensive income (loss), net	(27,235)						(27,235)
Net income (loss)	20,175				20,175
Balance, ending at Sep. 30, 2016	$ (64,921)		415	129,083	(76,035)	(90,918)	(27,466)
Balance, Shares ending at Sep. 30, 2016	34,987,254	34,987,254
Balance, beginning at Jun. 30, 2016							(43)
Other comprehensive income (loss), net	$ (27,423)						(27,423)
Net income (loss)	29,866
Balance, ending at Sep. 30, 2016	$ (64,921)		$ 415	$ 129,083	$ (76,035)	$ (90,918)	$ (27,466)
Balance, Shares ending at Sep. 30, 2016	34,987,254	34,987,254

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income (loss)	$ 20,175	$ (107,721)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization	18,791	20,066
Provision for severance benefits	13,609	14,173
Amortization of debt issuance costs and original issue discount	527	491
Loss (gain) on foreign currency, net	(38,182)	65,730
Restructuring gain	(7,785)
Stock-based compensation	2,966	2,370
Other	421	(352)
Changes in operating assets and liabilities
Accounts receivable, net	977	8,672
Inventories, net	(9,412)	11,302
Other receivables	20,214	7,115
Other current assets	510	669
Deferred tax assets	31	367
Accounts payable	7,088	(18,894)
Other accounts payable	(4,764)	(10,199)
Accrued expenses	(22,087)	(32,731)
Other current liabilities	(3,869)	(686)
Deferred revenue	2,662	(1,236)
Other non-current liabilities	(1,412)	190
Payment of severance benefits	(14,178)	(7,905)
Other	(213)	141
Net cash used in operating activities	(13,931)	(48,438)
Cash flows from investing activities
Proceeds from settlement of hedge collateral	6,317	10,841
Payment of hedge collateral	(2,494)	(17,182)
Proceeds from disposal of plant, property and equipment	185	1,698
Purchase of plant, property and equipment	(11,345)	(4,250)
Payment for intellectual property registration	(754)	(550)
Collection of guarantee deposits	476	123
Payment of guarantee deposits	(185)	(670)
Other	9	179
Net cash used in investing activities	(7,791)	(9,811)
Cash flows from financing activities
Proceeds from issuance of common stock	1,502	3,434
Net cash provided by financing activities	1,502	3,434
Effect of exchange rates on cash and cash equivalents	4,766	20,891
Net decrease in cash and cash equivalents	(15,454)	(33,924)
Cash and cash equivalents
Beginning of the period	90,882	102,434
End of the period	75,428	68,510
Supplemental cash flow information
Cash paid for interest	14,906	15,181
Cash paid for income taxes	635	438
Non-cash investing activities
Property, plant and equipment additions in other accounts payable	$ 1,738	$ 196

Business, Basis of Presentation

Business, Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (“IoT”) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory and Radio Frequency (“RF”) applications. The Company’s business is comprised of two operating segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve the consumer, computing, communication, industrial, automotive and IoT applications. The Company’s Standard Products Group is comprised of two business lines: Display Solutions and Power Solutions. The Company’s Display Solutions products provide flat panel display solutions to major suppliers of large and small flat panel displays and include sensor products for mobile applications, and industrial applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in consumer, communication and industrial applications. 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 (“US 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 270, “Interim Reporting” The December 31, 2015 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by US GAAP. Significant Accounting Policies For a description of significant accounting policies, see Note 1, Business, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. A significant accounting policy adopted in fiscal 2016 is disclosed below. Vendor Rebates Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-15 to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years and early adoption is permitted. The Company is currently evaluating the impact of adoption of ASU 2016-09 on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under US GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those reporting periods using a modified retrospective approach and early adoption is permitted. The Company is currently evaluating the impact of adoption of ASU 2016-02 on its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The amendments in ASU 2015-17 require an entity to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 and interim periods within those years and early adoption is permitted. The Company does not expect the adoption of ASU 2015-17 to have a material effect on the Company’s consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). Under ASU 2015-11, inventory will be measured at the lower of cost and net realizable value, and options that currently exist for market value will be eliminated. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company does not expect the adoption of ASU 2015-11 to have a material effect on the Company’s consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Presentation of Financial Statements – Going Concern” (“ASU 2014-15”), which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company does not expect the adoption of ASU 2015-17 to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016 (the “Original Effective Date”), including interim periods within that reporting period, and can be adopted either retrospectively to each prior period presented or as a cumulative-effect adjustment as of the date of adoption, with early application permitted as of the Original Effective Date. In August 2015, the FASB issued ASU 2015-14 “Deferral of the Effective Date,” which defers the required adoption date of ASU 2014-09 by one year. As a result of the deferred effective date, ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted but not before the original effective date as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, “Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”) clarifying the implementation guidance on principal versus agent considerations. Specifically, an entity is required to determine whether the nature of a promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The determination influences the timing and amount of revenue recognition. In May 2016, the FASB issued Accounting Standards Update No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”) clarifying how to assess collectibility, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. In addition, ASU 2016-12 clarifies that an entity retrospectively applying the guidance in Topic 606 is not required to disclose the effect of the accounting change in the period of adoption. The effective date and transition requirements for ASU 2016-12, ASU 2016-08 and ASU 2014-09 are the same. The Company is currently evaluating the potential impact of adopting ASU 2014-09, ASU 2016-08 and ASU 2016-12 on its consolidated financial statements. Recently Adopted Accounting Pronouncement In April 2015, the FASB issued Accounting Standards Update No. 2015-03, “Interest—Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The Company adopted ASU 2015-03 in the first quarter of fiscal 2016 and reclassified all prior periods presented in its consolidated balance sheets to conform to the current period presentation. As of September 30, 2016 and December 31, 2015, $3,350 thousand and $3,781 thousand, respectively, of debt issuance costs were reclassified in the consolidated balance sheets from other non-current assets to a reduction of long-term borrowings. The adoption of ASU 2015-03 did not impact the Company’s consolidated statements of operations and cash flows.

Sales of Accounts Receivable an

Sales of Accounts Receivable and Receivable Discount Program	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Sales of Accounts Receivable and Receivable Discount Program	2. Sales of Accounts Receivable and Receivable Discount Program The Company has entered into an agreement to sell selected trade accounts receivable to a financial institution from time to time since March 2012. After the sale, the Company does not retain any interest in the receivables and the applicable financial institution collects these accounts receivable directly from the customer. The proceeds from the sales of these accounts receivable totaled $17,984 thousand and $49,138 thousand for the nine months ended September 30, 2016 and 2015, respectively, and these sales resulted in pre-tax losses of $56 thousand and $88 thousand for the nine months ended September 30, 2016 and 2015, respectively, which are included in selling, general and administrative expenses in the consolidated statements of operations. Net proceeds of this accounts receivable sale program are recognized in the consolidated statements of cash flows as part of operating cash flows. The Company uses receivable discount programs with certain customers. These discount arrangements allow the Company to accelerate collection of customers’ receivables.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	3. Inventories Inventories as of September 30, 2016 and December 31, 2015 consist of the following (in thousands): September 30, 2016 December 31, 2015 Finished goods $ 16,139 18,427 Semi-finished goods and work-in-process 55,744 47,131 Raw materials 6,821 5,987 Materials in-transit 1,842 2,107 Less: inventory reserve (8,490 ) (16,033 ) Inventories, net $ 72,056 $ 57,619 Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Beginning balance $ (14,997 ) $ (16,033 ) $ (31,361 ) $ (47,488 ) Change in reserve 1,566 319 3,863 (1,780 ) Write off 5,710 7,850 4,050 25,010 Translation adjustments (769 ) (626 ) 1,808 2,618 Ending balance $ (8,490 ) $ (8,490 ) $ (21,640 ) $ (21,640 ) 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 and work-in-process. 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	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	4. Property, Plant and Equipment Property, plant and equipment as of September 30, 2016 and December 31, 2015 are comprised of the following (in thousands): September 30, 2016 December 31, 2015 Buildings and related structures $ 71,205 $ 66,487 Machinery and equipment 274,311 256,259 Vehicles and others 32,503 27,075 378,019 349,821 Less: accumulated depreciation (198,191 ) (172,546 ) Land 15,725 14,710 Property, plant and equipment, net $ 195,553 $ 191,985 Aggregate depreciation expenses totaled $18,448 thousand and $19,810 thousand for the nine months ended September 30, 2016 and 2015, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	5. Intangible Assets Intangible assets as of September 30, 2016 and December 31, 2015 are comprised of the following (in thousands): September 30, 2016 Gross amount Accumulated amortization Net amount Technology $ 19,735 $ (19,735 ) $ — Customer relationships 28,343 (28,343 ) — Intellectual property assets 9,586 (6,357 ) 3,229 Intangible assets, net $ 57,664 $ (54,435 ) $ 3,229 December 31, 2015 Gross amount Accumulated amortization Net amount Technology $ 18,460 $ (18,460 ) $ — Customer relationships 26,513 (26,513 ) — Intellectual property assets 8,357 (5,728 ) 2,629 Intangible assets, net $ 53,330 $ (50,701 ) $ 2,629 Aggregate amortization expenses for intangible assets totaled $343 thousand and $256 thousand for the nine months ended September 30, 2016 and 2015, respectively.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	6. Accrued Expenses Accrued expenses as of September 30, 2016 and December 31, 2015 are comprised of the following (in thousands): September 30, 2016 December 31, 2015 Payroll, benefits and related taxes, excluding severance benefits $ 28,395 $ 18,831 Withholding tax attributable to intercompany interest income 14,712 13,130 Interest on senior notes 3,104 6,831 Settlement obligations 332 1,012 Accrued claim settlement — 23,500 Outside service fees 2,296 4,327 Others 9,445 9,090 Accrued expenses $ 58,284 $ 76,721 Accrued claim settlement included in the table above relates to the Company’s securities class action complaints. On December 10, 2015, it was determined that the Company was obligated to make an aggregate settlement payment of $23,500 thousand, which includes all attorneys’ fees, costs of administration and plaintiffs’ out-of-pocket expenses, lead plaintiff compensatory awards and disbursements. In connection with the securities class action complaints, the Company also settled with its insurers and obtained proceeds of $29.6 million in the first quarter of 2016, and disbursed the $23,500 thousand from the escrow account, recorded as restricted cash, in the third quarter of 2016. For more information on the accrued claim settlement, see “Note 17. Commitments and Contingencies”. Payroll, benefits and related taxes payable as of September 30, 2016 in the table above includes unpaid other termination benefits under the voluntary resignation program of $2.6 million, the remaining balance of the $4.2 million total aggregate expense for such benefits accrued during the second quarter of 2016 and being paid out in equal monthly installments over the twelve month period which began in May 2016.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [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 derivative contracts as of September 30, 2016 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement August 3, 2016 Zero cost collar $ 30,000 October to December 2016 Details of derivative contracts as of December 31, 2015 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement September 30, 2015 Zero cost collar $ 30,000 January to March 2016 September 30, 2015 Zero cost collar $ 30,000 April to June 2016 The zero cost collar contracts qualify as cash flow hedges under Accounting Standards Codification 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 Company is utilizing the “hypothetical derivative” method to measure the effectiveness by comparing the changes in value of the actual derivative versus the change in fair value of the “hypothetical derivative.” The fair values of the Company’s outstanding zero cost collar contracts recorded as liabilities as of September 30, 2016 and December 31, 2015 are as follows (in thousands): Derivatives designated as hedging instruments: September 30, 2016 December 31, Liability Derivatives: Zero cost collars Other current liabilities $ 123 $ 40 Offsetting of derivative liabilities as of September 30, 2016 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 As of September 30, 2016 Financial instruments Cash collateral received/ pledged Net amount Liability Derivatives: Zero cost collars $ 123 $ — $ 123 $ — $ — $ 123 Offsetting of derivative liabilities as of December 31, 2015 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 As of December 31, 2015 Financial instruments Cash collateral received/ pledged Net amount Liabilities Derivatives: Zero cost collars $ 40 $ — $ 40 $ — $ — $ 40 For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (“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 either hedge ineffectiveness or 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 statement of operations for the three months ended September 30, 2016 and 2015 (in thousands): Derivatives in ASC 815 Cash Flow Amount of Loss Location of Amount of Gain Location of Loss Amount of Loss Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Zero cost collars $ (83 ) $ (2,869 ) Net sales $ — $ (1,579 ) Other income, net $ (32 ) $ (271 ) Total $ (83 ) $ (2,869 ) $ — $ (1,579 ) $ (32 ) $ (271 ) The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the nine months ended September 30, 2016 and 2015 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain Location of Amount of Gain Location of Gain Amount of Gain Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Zero cost collars $ (42 ) $ (4,286 ) Net sales $ — $ (1,094 ) Other income, net $ 1 $ (577 ) Total $ (42 ) $ (4,286 ) $ — $ (1,094 ) $ 1 $ (577 ) As of September 30, 2016, the amount expected to be reclassified from accumulated other comprehensive income into loss within the next twelve months is $83 thousand. The Company set aside $2,100 thousand and $6,000 thousand of cash deposits to the counterparty, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) as required for the zero cost collar contracts outstanding as of September 30, 2016 and December 31, 2015, respectively. These cash deposits are recorded as hedge collateral on the consolidated balance sheets. The Company is required to deposit additional cash collateral with NFIK for any exposure in excess of $500 thousand, but no such excess exposure existed as of September 30, 2016. These outstanding zero cost collar contracts are subject to termination if the sum of qualified and unrestricted cash and cash equivalents held by the Company is less than $30,000 thousand on the last day of a fiscal quarter.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	8. Fair Value Measurements As of September 30, 2016 and December 31, 2015, the carrying value of derivative liabilities, which are measured at fair value on a recurring basis, was $123 thousand and $40 thousand, respectively. Its fair value measurement was based on Level 2 inputs. As of September 30, 2016, the Company did not have any assets measured at fair value on a recurring basis other than cash and cash equivalents and restricted cash, the fair values 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, with the exception of cash (Level 1). As of September 30, 2016, the total carrying value and estimated fair value of the Company’s 6.625% Senior Notes due July 15, 2021 (the “2021 Notes”), which are not measured at fair value on a recurring basis, were $220,902 thousand and $201,938 thousand, respectively. As of December 31, 2015, the total carrying value and estimated fair value of the 2021 Notes were $220,375 thousand and $157,500 thousand, respectively. The estimated fair values are based on Level 2 inputs.

Long-Term Borrowings

Long-Term Borrowings	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-Term Borrowings	9. Long-Term Borrowings Long-term borrowings as of September 30, 2016 and December 31, 2015 are as follows (in thousands): September 30, 2016 December 31, 2015 6.625% senior notes due July 2021 $ 225,000 $ 225,000 Less: unamortized discount and debt issuance costs (4,098 ) (4,625 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 220,902 $ 220,375 On July 18, 2013, the Company issued a $225,000,000 aggregate principal amount of the 2021 Notes at a price of 99.5%. Interest on the 2021 Notes accrues at a rate of 6.625% per annum, payable semi-annually on January 15 and July 15 of each year, beginning on January 15, 2014. The Company can optionally redeem all or a part of the 2021 Notes according to the following schedule: (i) at any time prior to July 15, 2017, the Company may on any one or more occasions redeem all or a part of the 2021 Notes issued under that certain Indenture, dated as of July 18, 2013, by and between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”), as supplemented by that certain First Supplemental Indenture, dated as of March 27, 2014 (collectively, the “Indenture”), related to the 2021 Notes at a redemption price equal to 100% of the principal amount of the notes redeemed, plus the applicable premium as of, and accrued and unpaid interest and special interest, if any, to the date of redemption and (ii) on or after July 15, 2017, the Company may on any one or more occasions redeem all or a part of the 2021 Notes, at a redemption price equal to 103.313%, 101.656% and 100% of the principal amount of the notes redeemed on or after July 15, 2017, 2018 and 2019, respectively, plus accrued and unpaid interest and special interest, if any, on the notes redeemed, to the applicable date of redemption. The Indenture relating to the 2021 Notes contains covenants that limit the ability of the Company and its restricted subsidiaries to: (i) declare or pay any dividend or make any payment or distribution on account of or purchase or redeem the Company’s capital stock or equity interests of the restricted subsidiaries; (ii) make any principal payment on, or redeem or repurchase, prior to any scheduled repayment or maturity, any subordinated indebtedness; (iii) make certain investments; (iv) incur additional indebtedness and issue certain types of capital stock; (v) create or incur any lien (except for permitted liens) that secures obligations under any indebtedness; (vi) merge with or into or sell all or substantially all of the Company’s assets to other companies; (vii) enter into certain types of transactions with affiliates; (viii) guarantee the payment of any indebtedness; (ix) enter into sale-leaseback transactions; (x) enter into agreements that would restrict the ability of the restricted subsidiaries to make distributions with respect to their equity to the Company or other restricted subsidiaries, to make loans to the Company or other restricted subsidiaries or to transfer assets to the Company or other restricted subsidiaries; and (xi) designate unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications. Certain of these restrictive covenants will terminate if the 2021 Notes are rated investment grade at any time.

Accrued Severance Benefits

Accrued Severance Benefits	9 Months Ended
	Sep. 30, 2016
Postemployment Benefits [Abstract]
Accrued Severance Benefits	10. 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 September 30, 2016, 98% of employees of the Company were eligible for severance benefits. Changes in accrued severance benefits are as follows (in thousands): Three Nine Three Nine September 30, 2016 September 30, 2015 Beginning balance $ 132,800 $ 135,160 $ 144,800 $ 140,405 Provisions 3,782 13,609 2,296 14,173 Severance payments (1,076 ) (14,178 ) (3,674 ) (7,905 ) Translation adjustments 8,350 9,265 (8,466 ) (11,717 ) 143,856 143,856 134,956 134,956 Less: Cumulative contributions to the National Pension Fund (305 ) (305 ) (310 ) (310 ) Group severance insurance plan (705 ) (705 ) (691 ) (691 ) Accrued severance benefits, net $ 142,846 $ 142,846 $ 133,955 $ 133,955 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. 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 2016 $ — 2017 — 2018 — 2019 895 2020 1,651 2021 2,822 2022 – 2026 21,155 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. The above table reflects an effect of a mandatory extension of retirement age in Korea from 57 to 60 under the Employment Promotion for the Aged Act effective from the beginning of 2016.

Foreign Currency Gain (Loss), N

Foreign Currency Gain (Loss), Net	9 Months Ended
	Sep. 30, 2016
Foreign Currency [Abstract]
Foreign Currency Gain (Loss), Net	11. Foreign Currency Gain (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 September 30, 2016, the outstanding intercompany loan balance including accrued interest between the Korean subsidiary and the Dutch subsidiary was $591 million. The Korean won to U.S. dollar exchange rates were 1,096.3:1 and 1,172.0:1 using the first base rate as of September 30, 2016 and December 31, 2015, respectively, as quoted by the KEB Hana Bank (formerly Korea Exchange Bank).

Restructuring Gain

Restructuring Gain	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Gain	12. Restructuring Gain During the first quarter of 2016, the Company completed all procedures necessary to sell all machineries in its closed six-inch fabrication facility in Cheongju, South Korea (the “6-inch fab”) and recognized the $7,785 thousand of restructuring gain from the related deposit of $8,165 thousand received as of December 31, 2015, net of certain direct selling costs.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company files income tax returns in the U.S., Korea, Japan, Taiwan and various other jurisdictions. The Company’s Korean subsidiary is the principal operating entity within the consolidated Company. For the nine months ended September 30, 2016 and 2015, no income tax expense or benefit for the Korean subsidiary was recorded due to net loss, net operating loss carry-forwards available to offset taxable income and full valuation allowance for deferred tax assets. Income tax expenses for the nine months ended September 30, 2016 and 2015 were $1,845 thousand and $1,781 thousand, respectively. The increase in income tax expenses was primarily due to the decrease in profit before income taxes of certain foreign subsidiaries that were able to identify income in those jurisdictions and changes in unrecognized tax benefits related to the lapse of the applicable statute of limitations at the Korean subsidiary, which was mostly offset by changes in deferred tax assets at foreign subsidiaries.

Geographic and Segment Informat

Geographic and Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Geographic and Segment Information	14. Geographic and Segment Information The Company had previously reported its results of operations under one operating segment. During the second quarter of 2015, organizational changes were made to (i) realign the Company’s businesses and organizational structure and (ii) streamline and consolidate certain business processes to achieve greater operating efficiencies. In furtherance of these objectives, the Company combined its Display Solutions and Power Solutions business lines into a new segment called Standard Products Group. Beginning in the second quarter of 2015, the Company began reporting its financial results in two operating segments: Semiconductor Manufacturing Services and Standard Products Group. During the third quarter of 2015, the Company changed the name of its Semiconductor Manufacturing Services segment to Foundry Services Group. The Company’s chief operating decision maker is its Chief Executive Officer who allocates resources and assesses performance of the business and other activities based on gross profit. The two newly established operating segments were managed prospectively and all prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. The following sets forth information relating to the operating segments (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Net Sales Foundry Services Group $ 73,863 $ 71,471 $ 196,152 $ 224,953 Standard Products Group Display Solutions 84,706 48,314 217,171 153,585 Power Solutions 33,619 34,406 93,750 102,238 Total Standard Products Group 118,325 82,720 310,921 255,823 All other 108 191 434 506 Total net sales $ 192,296 $ 154,382 $ 507,507 $ 481,282 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Gross Profit Foundry Services Group $ 17,340 $ 18,681 $ 45,820 $ 51,241 Standard Products Group 21,691 15,827 64,836 53,216 All other 108 191 (519 ) 505 Total gross profit $ 39,139 $ 34,699 $ 110,137 $ 104,962 The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended September 30, September 30, Korea $ 58,521 $ 56,097 Asia Pacific (other than Korea) 107,551 84,236 U.S.A. 15,396 6,096 Europe 10,497 7,407 Others 331 546 Total $ 192,296 $ 154,382 Nine Months Ended September 30, September 30, Korea $ 155,971 $ 180,322 Asia Pacific (other than Korea) 289,451 238,995 U.S.A. 28,510 45,776 Europe 32,763 14,768 Others 812 1,421 Total $ 507,507 $ 481,282 Net sales from the Company’s top ten largest customers accounted for 69% and 61% for the three months ended September 30, 2016 and 2015, respectively, and 65% and 64% for the nine months ended September 30, 2016 and 2015, respectively. For the three months ended September 30, 2016, the Company had two customers that represented 27.8% and 11.2% of its net sales, respectively, and for the nine months ended September 30, 2016, the Company had two customers that represented 25.6% and 11.1% of its net sales, respectively. For the three months ended September 30, 2015, the Company had two customers that represented 14.7% and 10.1% of its net sales, respectively, and for the nine months ended September 30, 2015, the Company had two customers that represented 15.0% and 10.9% of its net sales, respectively. 96% of the Company’s property, plant and equipment is located in Korea as of September 30, 2016.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	15. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the following as of September 30, 2016 and December 31, 2015, respectively (in thousands): September 30, December 31, Foreign currency translation adjustments $ (27,383 ) $ (190 ) Derivative adjustments (83 ) (41 ) Total $ (27,466 ) $ (231 ) Changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2016 and 2015 are as follows (in thousands): Three Months Ended September 30, 2016 Foreign Derivative Total Beginning balance $ (43 ) $ — $ (43 ) Other comprehensive loss before reclassifications (27,340 ) (83 ) (27,423 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,340 ) (83 ) (27,423 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) Three Months Ended September 30, 2015 Foreign Derivative Total Beginning balance $ (22,372 ) $ (1,417 ) $ (23,789 ) Other comprehensive income (loss) before reclassifications 37,583 (2,869 ) 34,714 Amounts reclassified from accumulated other comprehensive income — 1,579 1,579 Net current-period other comprehensive income (loss) 37,583 (1,290 ) 36,293 Ending balance $ 15,211 $ (2,707 ) $ 12,504 Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 are as follows (in thousands): Nine Months Ended September 30, 2016 Foreign Derivative Total Beginning balance $ (190 ) $ (41 ) $ (231 ) Other comprehensive loss before reclassifications (27,193 ) (42 ) (27,235 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,193 ) (42 ) (27,235 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) Nine Months Ended September 30, 2015 Foreign Derivative Total Beginning balance $ (35,551 ) $ 485 $ (35,066 ) Other comprehensive income (loss) before reclassifications 50,762 (4,286 ) 46,476 Amounts reclassified from accumulated other comprehensive income — 1,094 1,094 Net current-period other comprehensive income (loss) 50,762 (3,192 ) 47,570 Ending balance $ 15,211 $ (2,707 ) $ 12,504

Earnings (Loss) per Share

Earnings (Loss) per Share	9 Months Ended
	Sep. 30, 2016
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 (in thousands): Three Months Ended September 30, September 30, Net income (loss) $ 29,866 $ (57,066 ) Weighted average common stock outstanding Basic 34,849,805 34,664,246 Diluted 35,302,706 34,664,246 Earnings (loss) per share Basic $ 0.86 $ (1.65 ) Diluted $ 0.85 $ (1.65 ) Nine Months Ended September 30, September 30, Net income (loss) $ 20,175 $ (107,721 ) Weighted average common stock outstanding Basic 34,755,276 34,273,265 Diluted 35,077,315 34,273,265 Earnings (loss) per share Basic $ 0.58 $ (3.14 ) Diluted $ 0.58 $ (3.14 ) 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 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Options 2,457,955 3,257,028 3,545,576 3,257,028 Restricted Stock Units — 135,370 — 135,370 Rights Plan On March 5, 2015, the Company entered into a Rights Agreement, dated as of March 5, 2015 between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (as amended, the “Rights Agreement”), and the Board of Directors of the Company authorized and declared a dividend of one preferred stock purchase right (a “Right” and collectively, the “Rights”) for each share of the Company’s common stock, par value $0.01 per share, outstanding at the close of business on March 16, 2015. The Company amended the Rights Agreement on March 2, 2016 and September 2, 2016. As amended, each Right, once exercisable, will entitle the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of $12, subject to adjustment (the “Purchase Price”). The Rights are not presently exercisable and remain attached to the shares of common stock unless and until the occurrence of the earlier of the following (the “Distribution Date”): (i) the tenth day after the public announcement or disclosure by the Company or any person or group of affiliated or associated persons that any person or group of affiliated or associated persons has become an “Acquiring Person” by obtaining beneficial ownership of 12.5% (or 20% in the case of a “passive institutional investor,” which is defined generally as any person who has reported beneficial ownership of shares of common stock on Schedule 13G under the Securities Exchange Act of 1934) or more of the Company’s outstanding common stock, subject to certain exceptions; or (ii) the tenth business day (or such later date as the Company’s Board of Directors may designate before a person or group of affiliated or associated persons becomes an Acquiring Person) after the commencement of, or first public announcement of the intent of any person to commence, a tender or exchange offer by any person or group of affiliated or associated persons, which would, if consummated, result in such person or group becoming an Acquiring Person. The Board of Directors may redeem all of the Rights for $0.001 per Right at any time before any person or group of affiliated or associated persons becomes an Acquiring Person. In addition, at any time on or after any person or group of affiliated or associated persons becomes an Acquiring Person (but before any person or group of affiliated or associated persons becomes the owner of 50% or more of the Company’s outstanding common stock), the Board of Directors may exchange all or part of the Rights (other than the Rights beneficially owned by the Acquiring Person and certain affiliated persons) for shares of common stock at an exchange ratio of one share of common stock per Right. The Rights will expire at the close of business on March 5, 2017, unless redeemed or exchanged prior to that time. If any person or group of affiliated or associated persons becomes an Acquiring Person, then, after the Distribution Date, each Right (other than Rights beneficially owned by the Acquiring Person and certain affiliated persons or transferees thereof) will entitle the holder to purchase, for the Purchase Price, a number of shares of common stock having a market value of twice the Purchase Price. Alternatively, if, after any person or group of affiliated or associated persons becomes an Acquiring Person, (1) the Company is involved in a merger or other business combination in which the Company is not the surviving corporation or its common stock is changed into or exchanged for other securities or assets; or (2) the Company or one or more of its subsidiaries sell or otherwise transfer assets or earning power aggregating more than 50% of the assets or earning power of the Company and its subsidiaries, taken as a whole, then each Right will entitle the holder to purchase, for the Purchase Price, a number of shares of common stock of the other party to such business combination or sale (or in certain circumstances, an affiliate) having a market value of twice the Purchase Price.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	17. Commitments and Contingencies Securities Class Action Complaints On March 12, 2014, a purported class action was filed against the Company and certain of the Company’s now-former officers. On April 21, 2015, a related purported class action lawsuit (Okla. Police Pension & Retirement Sys. v. MagnaChip Semiconductor Corp., et al., No. 3:15-cv-01797) was filed against the Company, certain of the Company’s current directors and former and now-former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings. On June 15, 2015, these two class action lawsuits were consolidated. On June 26, 2015, an amended complaint was filed in the consolidated action, against the Company, certain of the Company’s current directors and former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings on behalf of a putative class consisting of all persons other than the defendants who purchased or acquired the Company’s securities between February 1, 2012 and February 12, 2015 and a putative subclass consisting of all purchasers of the Company’s common stock pursuant to or traceable to a shelf registration statement and prospectus issued in connection with the Company’s February 6, 2013 public stock offering. The consolidated amended complaint asserts claims on behalf of the putative class for (i) alleged violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by the Company and certain of the Company’s current directors and former officers, (ii) alleged violations of Section 20(a) of the Exchange Act by certain of the Company’s current directors and former officers, and (iii) alleged violations of Sections 20(a) and 20(A) of the Exchange Act by a shareholder. The consolidated amended complaint also asserts claims on behalf the subclass for (i) alleged violations of Section 11 of the Securities Act by the Company, certain of the Company’s current directors and former officers, and certain financial firms that acted as underwriters of the Company’s public stock offerings, (ii) alleged violations of Section 12 of the Securities Act by the Company, certain of the Company’s current directors and former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings, (iii) alleged violations of Section 15 of the Securities Act by the Company, certain of the Company’s former officers, and a shareholder of the Company. On December 10, 2015, the Company and certain of its current and former officers and directors entered into a Memorandum of Understanding with the plaintiffs’ representatives to memorialize an agreement in principle to settle the consolidated securities class action lawsuit, Thomas, et al. v. MagnaChip Semiconductor Corp. et al., Civil Action No. 3:14-CV-01160-JST, pending in the United States District Court for the Northern District of California (the “Class Action Litigation”). On February 5, 2016, the plaintiffs in the consolidated securities class action filed a motion for preliminary approval of the settlement, as well as the stipulation and agreement of settlement and related exhibits. The stipulation and agreement of settlement releases all claims asserted against all defendants in the Class Action Litigation except for Avenue Capital Management II, L.P. and does not release claims asserted in the derivative actions Hemmingson, et al. v. Elkins, et al., No. 1-15-CV-278614 (PHK) (Cal. Super. Ct. Santa Clara Cnty.) and Bushansky v. Norby, et al., No. 1-15-CV-281284 (PHK) (Cal. Super. Ct. Santa Clara Cnty.). The stipulation and agreement of settlement provides for an aggregate settlement payment by the Company of $23.5 million, which includes all attorneys’ fees, costs of administration and plaintiffs’ out-of-pocket expenses, lead plaintiff compensatory awards and disbursements. The Company expects the settlement will be fully funded by insurance proceeds. The settlement includes the dismissal of all claims against the Company and the named individuals in the Class Action Litigation without any liability or wrongdoing attributed to them. On April 13, 2016, plaintiffs filed a renewed motion for preliminary approval of the settlement. On July 18, 2016, the court granted plaintiffs’ renewed motion for preliminary approval of the settlement. The court has scheduled the fairness hearing for November 21, 2016. The settlement remains subject to stockholder notice, court approval and other customary conditions. The Company recorded the $23.5 million of the obligation as accrued expenses in the consolidated balance sheets as of December 31, 2015 and as selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2015. The Company recorded $29.6 million of the proceeds from the insurers as other receivables in the consolidated balance sheets as of December 31, 2015 and as a deduction of the selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2015. The proceeds from the insurers of $29.6 million were deposited into the Company’s escrow account during the first quarter of 2016 and the Company reclassified the $29.6 million deposits recorded in other receivables into restricted cash. During the third quarter of 2016, the Company disbursed the aggregate settlement payment of $23.5 million after the court granted plaintiffs’ renewed motion for preliminary approval of the settlement in July 2016. SEC Enforcement Staff Review In March 2014, the Company voluntarily reported to the SEC that the Company’s Audit Committee had determined that the Company incorrectly recognized revenue on certain transactions and as a result would restate its financial statements, and that the Audit Committee had commenced an independent investigation. Over the course of 2014 and the first two quarters of 2015, the Company voluntarily produced documents to the SEC regarding the various accounting issues identified during the independent investigation, and whether the Company’s hiring of an accountant from the Company’s independent registered public accounting firm impacted that accounting firm’s independence. On July 22, 2014, the Staff of the SEC’s Division of Enforcement obtained a Formal Order of Investigation. On March 12, 2015, the SEC issued a subpoena for documents to the Company in connection with its investigation. The Company will continue to cooperate with the SEC in this investigation, and has produced documents in response to the subpoena. At this time, the Company is unable to estimate any reasonably possible loss, or range of reasonably possible losses, with respect to the matters described above. Shareholder Derivative Complaints A shareholder derivative action, styled Hemmingson et al. v. Elkins et al., Case No. 1-15-cv-278614, was filed in the Superior Court of the State of California in and for Santa Clara County on March 25, 2015, naming as defendants certain of the Company’s current directors and former and now-former officers, as well as a shareholder of the Company, and naming the Company as a nominal defendant. The complaint in this action asserts claims for (i) alleged breaches of fiduciary duty by certain of the Company’s current directors and former and now-former officers for purportedly knowingly failing to maintain adequate internal controls over its accounting and reporting functions and disseminating to shareholders certain alleged materially false and misleading statements, (ii) alleged breaches of fiduciary duty by certain of the Company’s current directors and a current shareholder of the Company for purported insider trading, and (iii) alleged unjust enrichment by a shareholder of the Company for purported insider trading. On June 1, 2015, a shareholder derivative action was filed in the Superior Court of the State of California, Santa Clara County styled Bushansky v. Norby, et al., No. 1-15-CV-281284 (PHK) (Cal. Super. Ct. Santa Clara Cnty.). The complaint names as defendants certain of the Company’s current directors and former officers, and a shareholder of the Company, with the Company being named as a nominal defendant. The complaint asserts claims for (i) alleged breaches of fiduciary duties by certain of the Company’s current directors and former officers for knowingly failing to maintain adequate internal controls over the Company’s accounting and reporting functions and disseminating to shareholders certain alleged materially false and misleading statements; and (ii) alleged aiding and abetting of such breaches of fiduciary duties by all defendants. On January 22, 2016, the Company and the plaintiffs in the Hemmingson and Bushansky actions entered into and filed a stipulation of settlement with the Superior Court of the State of California, Santa Clara County. The settlement provides for the resolution of all of the pending claims in both shareholder derivative actions against the Company and the individual defendants, without any liability or wrongdoing attributed to them. The settlement provides for an aggregate payment from the Company defendants’ directors and officers insurance policies of $3.0 million to be made to an escrow account, which will be remitted to the Company once the settlement becomes final, less (i) any applicable costs of such escrow account, (ii) any amount awarded by the court to the plaintiff’s counsel for attorney’s fees and litigation expenses and (iii) the cost of providing notice of the settlement to the Company’s stockholders. The proposed settlement also requires that the Company implement certain corporate governance measures. On February 22, 2016, plaintiffs filed an unopposed motion for preliminary approval of the proposed derivative settlement. On June 10, 2016, the court granted plaintiffs’ motion for preliminary approval of the proposed settlement. On October 18, 2016, after a hearing held on October 14, 2016, the court entered its order and final judgment (the “Judgment”) granting final approval of the proposed settlement and awarding plaintiffs’ counsel $750,000 for attorneys’ fees and litigation expenses. The Judgment is subject to appeal. In the event that no appeal is filed, the settlement will become effective at the expiration of the appeal period, which is 60 days from October 18, 2016, the date the Judgment was entered by the Court.

Business, Basis of Presentati25

Business, Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Business	1. Business, Basis of Presentation and Significant Accounting Policies Business MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (“IoT”) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory and Radio Frequency (“RF”) applications. The Company’s business is comprised of two operating segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve the consumer, computing, communication, industrial, automotive and IoT applications. The Company’s Standard Products Group is comprised of two business lines: Display Solutions and Power Solutions. The Company’s Display Solutions products provide flat panel display solutions to major suppliers of large and small flat panel displays and include sensor products for mobile applications, and industrial applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in consumer, communication and industrial applications.
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 (“US 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 270, “Interim Reporting” The December 31, 2015 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by US GAAP.
Significant Accounting Policies	Significant Accounting Policies For a description of significant accounting policies, see Note 1, Business, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. A significant accounting policy adopted in fiscal 2016 is disclosed below.
Vendor Rebates	Vendor Rebates
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-15 to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years and early adoption is permitted. The Company is currently evaluating the impact of adoption of ASU 2016-09 on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under US GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those reporting periods using a modified retrospective approach and early adoption is permitted. The Company is currently evaluating the impact of adoption of ASU 2016-02 on its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The amendments in ASU 2015-17 require an entity to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 and interim periods within those years and early adoption is permitted. The Company does not expect the adoption of ASU 2015-17 to have a material effect on the Company’s consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). Under ASU 2015-11, inventory will be measured at the lower of cost and net realizable value, and options that currently exist for market value will be eliminated. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company does not expect the adoption of ASU 2015-11 to have a material effect on the Company’s consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Presentation of Financial Statements – Going Concern” (“ASU 2014-15”), which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company does not expect the adoption of ASU 2015-17 to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016 (the “Original Effective Date”), including interim periods within that reporting period, and can be adopted either retrospectively to each prior period presented or as a cumulative-effect adjustment as of the date of adoption, with early application permitted as of the Original Effective Date. In August 2015, the FASB issued ASU 2015-14 “Deferral of the Effective Date,” which defers the required adoption date of ASU 2014-09 by one year. As a result of the deferred effective date, ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted but not before the original effective date as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, “Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”) clarifying the implementation guidance on principal versus agent considerations. Specifically, an entity is required to determine whether the nature of a promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The determination influences the timing and amount of revenue recognition. In May 2016, the FASB issued Accounting Standards Update No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”) clarifying how to assess collectibility, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. In addition, ASU 2016-12 clarifies that an entity retrospectively applying the guidance in Topic 606 is not required to disclose the effect of the accounting change in the period of adoption. The effective date and transition requirements for ASU 2016-12, ASU 2016-08 and ASU 2014-09 are the same. The Company is currently evaluating the potential impact of adopting ASU 2014-09, ASU 2016-08 and ASU 2016-12 on its consolidated financial statements.
Recently Adopted Accounting Pronouncement	Recently Adopted Accounting Pronouncement In April 2015, the FASB issued Accounting Standards Update No. 2015-03, “Interest—Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The Company adopted ASU 2015-03 in the first quarter of fiscal 2016 and reclassified all prior periods presented in its consolidated balance sheets to conform to the current period presentation. As of September 30, 2016 and December 31, 2015, $3,350 thousand and $3,781 thousand, respectively, of debt issuance costs were reclassified in the consolidated balance sheets from other non-current assets to a reduction of long-term borrowings. The adoption of ASU 2015-03 did not impact the Company’s consolidated statements of operations and cash flows.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories as of September 30, 2016 and December 31, 2015 consist of the following (in thousands): September 30, 2016 December 31, 2015 Finished goods $ 16,139 18,427 Semi-finished goods and work-in-process 55,744 47,131 Raw materials 6,821 5,987 Materials in-transit 1,842 2,107 Less: inventory reserve (8,490 ) (16,033 ) Inventories, net $ 72,056 $ 57,619
Changes in Inventory Reserve	Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Beginning balance $ (14,997 ) $ (16,033 ) $ (31,361 ) $ (47,488 ) Change in reserve 1,566 319 3,863 (1,780 ) Write off 5,710 7,850 4,050 25,010 Translation adjustments (769 ) (626 ) 1,808 2,618 Ending balance $ (8,490 ) $ (8,490 ) $ (21,640 ) $ (21,640 )

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Summary of Property, Plant and Equipment	Property, plant and equipment as of September 30, 2016 and December 31, 2015 are comprised of the following (in thousands): September 30, 2016 December 31, 2015 Buildings and related structures $ 71,205 $ 66,487 Machinery and equipment 274,311 256,259 Vehicles and others 32,503 27,075 378,019 349,821 Less: accumulated depreciation (198,191 ) (172,546 ) Land 15,725 14,710 Property, plant and equipment, net $ 195,553 $ 191,985

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets as of September 30, 2016 and December 31, 2015 are comprised of the following (in thousands): September 30, 2016 Gross amount Accumulated amortization Net amount Technology $ 19,735 $ (19,735 ) $ — Customer relationships 28,343 (28,343 ) — Intellectual property assets 9,586 (6,357 ) 3,229 Intangible assets, net $ 57,664 $ (54,435 ) $ 3,229 December 31, 2015 Gross amount Accumulated amortization Net amount Technology $ 18,460 $ (18,460 ) $ — Customer relationships 26,513 (26,513 ) — Intellectual property assets 8,357 (5,728 ) 2,629 Intangible assets, net $ 53,330 $ (50,701 ) $ 2,629

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Summary of Accrued Expenses	Accrued expenses as of September 30, 2016 and December 31, 2015 are comprised of the following (in thousands): September 30, 2016 December 31, 2015 Payroll, benefits and related taxes, excluding severance benefits $ 28,395 $ 18,831 Withholding tax attributable to intercompany interest income 14,712 13,130 Interest on senior notes 3,104 6,831 Settlement obligations 332 1,012 Accrued claim settlement — 23,500 Outside service fees 2,296 4,327 Others 9,445 9,090 Accrued expenses $ 58,284 $ 76,721

Derivative Financial Instrume30

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Details of Derivative Contracts	Details of derivative contracts as of September 30, 2016 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement August 3, 2016 Zero cost collar $ 30,000 October to December 2016 Details of derivative contracts as of December 31, 2015 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement September 30, 2015 Zero cost collar $ 30,000 January to March 2016 September 30, 2015 Zero cost collar $ 30,000 April to June 2016
Fair Values of Outstanding Zero Cost Collar Recorded as Liabilities	The fair values of the Company’s outstanding zero cost collar contracts recorded as liabilities as of September 30, 2016 and December 31, 2015 are as follows (in thousands): Derivatives designated as hedging instruments: September 30, 2016 December 31, Liability Derivatives: Zero cost collars Other current liabilities $ 123 $ 40
Offsetting of Derivative Liabilities	Offsetting of derivative liabilities as of September 30, 2016 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 As of September 30, 2016 Financial instruments Cash collateral received/ pledged Net amount Liability Derivatives: Zero cost collars $ 123 $ — $ 123 $ — $ — $ 123 Offsetting of derivative liabilities as of December 31, 2015 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 As of December 31, 2015 Financial instruments Cash collateral received/ pledged Net amount Liabilities Derivatives: Zero cost collars $ 40 $ — $ 40 $ — $ — $ 40
Impact of Derivative Instruments on Consolidated Statement of Operations	The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the three months ended September 30, 2016 and 2015 (in thousands): Derivatives in ASC 815 Cash Flow Amount of Loss Location of Amount of Gain Location of Loss Amount of Loss Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Zero cost collars $ (83 ) $ (2,869 ) Net sales $ — $ (1,579 ) Other income, net $ (32 ) $ (271 ) Total $ (83 ) $ (2,869 ) $ — $ (1,579 ) $ (32 ) $ (271 ) The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the nine months ended September 30, 2016 and 2015 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain Location of Amount of Gain Location of Gain Amount of Gain Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Zero cost collars $ (42 ) $ (4,286 ) Net sales $ — $ (1,094 ) Other income, net $ 1 $ (577 ) Total $ (42 ) $ (4,286 ) $ — $ (1,094 ) $ 1 $ (577 )

Long-Term Borrowings (Tables)

Long-Term Borrowings (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Components of Long-term Borrowings	Long-term borrowings as of September 30, 2016 and December 31, 2015 are as follows (in thousands): September 30, 2016 December 31, 2015 6.625% senior notes due July 2021 $ 225,000 $ 225,000 Less: unamortized discount and debt issuance costs (4,098 ) (4,625 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 220,902 $ 220,375

Accrued Severance Benefits (Tab

Accrued Severance Benefits (Tables)	9 Months Ended
	Sep. 30, 2016
Postemployment Benefits [Abstract]
Changes in Accrued Severance Benefits	Changes in accrued severance benefits are as follows (in thousands): Three Nine Three Nine September 30, 2016 September 30, 2015 Beginning balance $ 132,800 $ 135,160 $ 144,800 $ 140,405 Provisions 3,782 13,609 2,296 14,173 Severance payments (1,076 ) (14,178 ) (3,674 ) (7,905 ) Translation adjustments 8,350 9,265 (8,466 ) (11,717 ) 143,856 143,856 134,956 134,956 Less: Cumulative contributions to the National Pension Fund (305 ) (305 ) (310 ) (310 ) Group severance insurance plan (705 ) (705 ) (691 ) (691 ) Accrued severance benefits, net $ 142,846 $ 142,846 $ 133,955 $ 133,955
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 2016 $ — 2017 — 2018 — 2019 895 2020 1,651 2021 2,822 2022 – 2026 21,155

Geographic and Segment Inform33

Geographic and Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Operating Segments	The following sets forth information relating to the operating segments (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Net Sales Foundry Services Group $ 73,863 $ 71,471 $ 196,152 $ 224,953 Standard Products Group Display Solutions 84,706 48,314 217,171 153,585 Power Solutions 33,619 34,406 93,750 102,238 Total Standard Products Group 118,325 82,720 310,921 255,823 All other 108 191 434 506 Total net sales $ 192,296 $ 154,382 $ 507,507 $ 481,282 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Gross Profit Foundry Services Group $ 17,340 $ 18,681 $ 45,820 $ 51,241 Standard Products Group 21,691 15,827 64,836 53,216 All other 108 191 (519 ) 505 Total gross profit $ 39,139 $ 34,699 $ 110,137 $ 104,962
Net Sales by Region, Based on Location of Products are Billed	The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended September 30, September 30, Korea $ 58,521 $ 56,097 Asia Pacific (other than Korea) 107,551 84,236 U.S.A. 15,396 6,096 Europe 10,497 7,407 Others 331 546 Total $ 192,296 $ 154,382 Nine Months Ended September 30, September 30, Korea $ 155,971 $ 180,322 Asia Pacific (other than Korea) 289,451 238,995 U.S.A. 28,510 45,776 Europe 32,763 14,768 Others 812 1,421 Total $ 507,507 $ 481,282

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) consists of the following as of September 30, 2016 and December 31, 2015, respectively (in thousands): September 30, December 31, Foreign currency translation adjustments $ (27,383 ) $ (190 ) Derivative adjustments (83 ) (41 ) Total $ (27,466 ) $ (231 )
Changes in Accumulated Other Comprehensive Income (Loss)	Changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2016 and 2015 are as follows (in thousands): Three Months Ended September 30, 2016 Foreign Derivative Total Beginning balance $ (43 ) $ — $ (43 ) Other comprehensive loss before reclassifications (27,340 ) (83 ) (27,423 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,340 ) (83 ) (27,423 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) Three Months Ended September 30, 2015 Foreign Derivative Total Beginning balance $ (22,372 ) $ (1,417 ) $ (23,789 ) Other comprehensive income (loss) before reclassifications 37,583 (2,869 ) 34,714 Amounts reclassified from accumulated other comprehensive income — 1,579 1,579 Net current-period other comprehensive income (loss) 37,583 (1,290 ) 36,293 Ending balance $ 15,211 $ (2,707 ) $ 12,504 Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015 are as follows (in thousands): Nine Months Ended September 30, 2016 Foreign Derivative Total Beginning balance $ (190 ) $ (41 ) $ (231 ) Other comprehensive loss before reclassifications (27,193 ) (42 ) (27,235 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,193 ) (42 ) (27,235 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) Nine Months Ended September 30, 2015 Foreign Derivative Total Beginning balance $ (35,551 ) $ 485 $ (35,066 ) Other comprehensive income (loss) before reclassifications 50,762 (4,286 ) 46,476 Amounts reclassified from accumulated other comprehensive income — 1,094 1,094 Net current-period other comprehensive income (loss) 50,762 (3,192 ) 47,570 Ending balance $ 15,211 $ (2,707 ) $ 12,504

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2016
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 (in thousands): Three Months Ended September 30, September 30, Net income (loss) $ 29,866 $ (57,066 ) Weighted average common stock outstanding Basic 34,849,805 34,664,246 Diluted 35,302,706 34,664,246 Earnings (loss) per share Basic $ 0.86 $ (1.65 ) Diluted $ 0.85 $ (1.65 ) Nine Months Ended September 30, September 30, Net income (loss) $ 20,175 $ (107,721 ) Weighted average common stock outstanding Basic 34,755,276 34,273,265 Diluted 35,077,315 34,273,265 Earnings (loss) per share Basic $ 0.58 $ (3.14 ) Diluted $ 0.58 $ (3.14 )
Schedule of Antidilutive Securities Excluded from the Computation of Diluted 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 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Options 2,457,955 3,257,028 3,545,576 3,257,028 Restricted Stock Units — 135,370 — 135,370

Business, Basis of Presentati36

Business, Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2015Segments	Sep. 30, 2016USD ($)SegmentsBusiness_Lines	Dec. 31, 2015USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of operating segments | Segments	2	2
Vendor rebates recorded as a reduction of inventory		$ 400
Vendor rebates recorded as a reduction of cost of sales		3,300
Accounting Standards Update 2015-03 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Unamortized debt issuance costs included in other non-current assets reclassified as deduction from long-term borrowing		$ 3,350	$ 3,781
Standard Products Group [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of business lines | Business_Lines		2

Sales of Accounts Receivable 37

Sales of Accounts Receivable and Receivable Discount Program - Additional Information (Detail) - Trade Accounts Receivable [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of accounts receivable	$ 17,984	$ 49,138
Selling, General and Administrative Expenses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-tax losses on accounts receivable	$ 56	$ 88

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished goods	$ 16,139		$ 18,427
Semi-finished goods and work-in-process	55,744		47,131
Raw materials	6,821		5,987
Materials in-transit	1,842		2,107
Less: inventory reserve	(8,490)	$ (14,997)	(16,033)	$ (21,640)	$ (31,361)	$ (47,488)
Inventories, net	$ 72,056		$ 57,619

Inventories - Changes in Invent

Inventories - Changes in Inventory Reserve (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Inventory Disclosure [Abstract]
Beginning balance	$ (14,997)	$ (31,361)	$ (16,033)	$ (47,488)
Change in reserve	1,566	3,863	319	(1,780)
Write off	5,710	4,050	7,850	25,010
Translation adjustments	(769)	1,808	(626)	2,618
Ending balance	$ (8,490)	$ (21,640)	$ (8,490)	$ (21,640)

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 378,019	$ 349,821
Less: accumulated depreciation	(198,191)	(172,546)
Property, plant and equipment, net	195,553	191,985
Buildings and Related Structures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	71,205	66,487
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	274,311	256,259
Vehicles and Others [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	32,503	27,075
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 15,725	$ 14,710

Property, Plant and Equipment41

Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 18,448	$ 19,810

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible asset, Gross amount	$ 57,664	$ 53,330
Accumulated amortization	(54,435)	(50,701)
Intangible asset, Net amount	3,229	2,629
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, Gross amount	19,735	18,460
Accumulated amortization	(19,735)	(18,460)
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, Gross amount	28,343	26,513
Accumulated amortization	(28,343)	(26,513)
Intellectual Property Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset, Gross amount	9,586	8,357
Accumulated amortization	(6,357)	(5,728)
Intangible asset, Net amount	$ 3,229	$ 2,629

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses for intangible assets	$ 343	$ 256

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Dec. 10, 2015
Payables and Accruals [Abstract]
Payroll, benefits and related taxes, excluding severance benefits	$ 28,395	$ 18,831
Withholding tax attributable to intercompany interest income	14,712	13,130
Interest on senior notes	3,104	6,831
Settlement obligations	332	1,012
Accrued claim settlement		23,500	$ 23,500
Outside service fees	2,296	4,327
Others	9,445	9,090
Accrued expenses	$ 58,284	$ 76,721

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Dec. 10, 2015
Other Accrued Liabilities [Line Items]
Accrued claim settlement				$ 23,500	$ 23,500
Proceeds from insurance settlement			$ 29,600
Disbursements of accrued claims and settlements	$ 23,500
Voluntary Resignation Program [Member]
Other Accrued Liabilities [Line Items]
Unpaid other termination benefits under the voluntary resignation program, current	$ 2,600
Aggregate other termination benefits expense under the voluntary resignation program		$ 4,200

Derivative Financial Instrume46

Derivative Financial Instruments - Details of Derivative Contracts (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Zero Cost Collar One [Member]
Derivative [Line Items]
Date of transaction	Aug. 3, 2016
Type of derivative	Zero cost collar
Total notional amount	$ 30,000,000
Month of settlement	October to December 2016
Zero Cost Collar Two [Member]
Derivative [Line Items]
Date of transaction		Sep. 30, 2015
Type of derivative		Zero cost collar
Total notional amount		$ 30,000,000
Month of settlement		January to March 2016
Zero Cost Collar Three [Member]
Derivative [Line Items]
Date of transaction		Sep. 30, 2015
Type of derivative		Zero cost collar
Total notional amount		$ 30,000,000
Month of settlement		April to June 2016

Derivative Financial Instrume47

Derivative Financial Instruments - Fair Values of Outstanding Zero Cost Collar Recorded as Liabilities (Detail) - Zero Cost Collars [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Liability Derivatives:
Derivatives designated as hedging instruments, Liability	$ 123	$ 40
Other Current Liabilities [Member]
Liability Derivatives:
Derivatives designated as hedging instruments, Liability	$ 123	$ 40

Derivative Financial Instrume48

Derivative Financial Instruments - Offsetting of Derivative Liabilities (Detail) - Zero Cost Collars [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Liability Derivatives, Gross amounts of recognized liabilities	$ 123	$ 40
Liability Derivatives, Gross amounts offset in the balance sheets	0	0
Liability Derivatives, Net amounts of liabilities presented in the balance sheets	123	40
Liability Derivatives, Gross amounts not offset in the balance sheets, Financial instruments	0	0
Liability Derivatives, Gross amounts not offset in the balance sheets, Cash collateral received/ pledged	0	0
Liability Derivatives, Net amount after master netting	$ 123	$ 40

Derivative Financial Instrume49

Derivative Financial Instruments - Impact of Derivative Instruments on Consolidated Statement of Operations (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative [Line Items]
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	$ (83)	$ (2,869)	$ (42)	$ (4,286)
Other Income, Net [Member]
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion)	(32)	(271)	1	(577)
Net Sales [Member]
Derivative [Line Items]
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion)		(1,579)		(1,094)
Zero Cost Collars [Member]
Derivative [Line Items]
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	(83)	(2,869)	(42)	(4,286)
Zero Cost Collars [Member] | Other Income, Net [Member]
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion)	$ (32)	(271)	$ 1	(577)
Zero Cost Collars [Member] | Net Sales [Member]
Derivative [Line Items]
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion)		$ (1,579)		$ (1,094)

Derivative Financial Instrume50

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Estimated amount reclassified from accumulated other comprehensive income into earnings, period	12 months
Estimated amount reclassified from accumulated other comprehensive income into earnings	$ 83,000
Zero Cost Collars [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member]
Derivative [Line Items]
Deposit with counterparty	2,100,000	$ 6,000,000
Threshold amount of cash collateral	500,000
Cash collateral for credit exposure in derivatives	0
Termination provisions for cash and cash equivalents	$ 30,000,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	Jul. 18, 2013	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount of senior notes		$ 220,902,000	$ 220,375,000
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities		123,000	$ 40,000
Other Asset Class [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value on recurring basis		$ 0
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	6.625%	6.625%	6.625%
Due date	Jul. 15, 2021	Jul. 15, 2021	Jul. 15, 2021
Carrying amount of senior notes		$ 220,902,000	$ 220,375,000
Estimated fair value of senior notes		$ 201,938,000	$ 157,500,000

Long-Term Borrowings - Componen

Long-Term Borrowings - Components of Long-term Borrowings (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term borrowings, net of unamortized discount and debt issuance costs	$ 220,902	$ 220,375
Senior Notes [Member] | 6.625% Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Long-term borrowings	225,000	225,000
Less: unamortized discount and debt issuance costs	(4,098)	(4,625)
Long-term borrowings, net of unamortized discount and debt issuance costs	$ 220,902	$ 220,375

Long-Term Borrowings - Compon53

Long-Term Borrowings - Components of Long-term Borrowings (Parenthetical) (Detail) - 6.625% Senior Notes Due 2021 [Member] - Senior Notes [Member]	Jul. 18, 2013	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Interest rate	6.625%	6.625%	6.625%
Due date	Jul. 15, 2021	Jul. 15, 2021	Jul. 15, 2021

Long-Term Borrowings - Addition

Long-Term Borrowings - Additional Information (Detail) - 6.625% Senior Notes Due 2021 [Member] - Senior Notes [Member] - USD ($)	Jul. 18, 2013	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Aggregate principal amount	$ 225,000,000
Interest rate	6.625%	6.625%	6.625%
Due date	Jul. 15, 2021	Jul. 15, 2021	Jul. 15, 2021
Aggregate principal amount of senior notes pricing	99.50%
Redemption price		100.00%
2017 [Member]
Debt Instrument [Line Items]
Redemption price plus accrued, unpaid interest and special interest to the date of redemption		103.313%
2018 [Member]
Debt Instrument [Line Items]
Redemption price plus accrued, unpaid interest and special interest to the date of redemption		101.656%
2019 [Member]
Debt Instrument [Line Items]
Redemption price plus accrued, unpaid interest and special interest to the date of redemption		100.00%

Accrued Severance Benefits - Ad

Accrued Severance Benefits - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
Percentage of employees eligible for severance benefits	98.00%
Korea [Member] | Minimum [Member]
Retirement age of employees	57 years
Korea [Member] | Maximum [Member]
Retirement age of employees	60 years

Accrued Severance Benefits - Ch

Accrued Severance Benefits - Changes in Accrued Severance Benefits (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Postemployment Benefits [Abstract]
Beginning balance	$ 132,800	$ 144,800	$ 135,160	$ 140,405
Provisions	3,782	2,296	13,609	14,173
Severance payments	(1,076)	(3,674)	(14,178)	(7,905)
Translation adjustments	8,350	(8,466)	9,265	(11,717)
Ending balance	143,856	134,956	143,856	134,956
Less: Cumulative contributions to the National Pension Fund	(305)	(310)	(305)	(310)
Group severance insurance plan	(705)	(691)	(705)	(691)
Accrued severance benefits, net	$ 142,846	$ 133,955	$ 142,846	$ 133,955	$ 134,148

Accrued Severance Benefits - Fu

Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) $ in Thousands	Sep. 30, 2016USD ($)
Compensation and Retirement Disclosure [Abstract]
Remainder of 2016	$ 0
2,017	0
2,018	0
2,019	895
2,020	1,651
2,021	2,822
2022 - 2026	$ 21,155

Foreign Currency Gain (Loss),58

Foreign Currency Gain (Loss), Net - Additional Information (Detail) $ in Millions	Sep. 30, 2016USD ($)₩ / $	Dec. 31, 2015₩ / $
Foreign Currency Transaction [Abstract]
Exchange rates using first base rate | ₩ / $	1,096.3	1,172
Intercompany loan balance | $	$ 591

Restructuring Gain - Additional

Restructuring Gain - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Gain on sale of machinery as part of restructuring	$ 7,785
Korea [Member]
Restructuring Cost and Reserve [Line Items]
Gain on sale of machinery as part of restructuring	$ 7,785
Restructuring related deposits		$ 8,165

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Contingency [Line Items]
Income tax expenses (benefits)	$ 758,000	$ 1,250,000	$ 1,845,000	$ 1,781,000
Korean Subsidiary [Member]
Income Tax Contingency [Line Items]
Income tax expenses (benefits)			$ 0	$ 0

Geographic and Segment Inform61

Geographic and Segment Information - Additional Information (Detail)	3 Months Ended				9 Months Ended
	Sep. 30, 2016Customer	Sep. 30, 2015Customer	Jun. 30, 2015Segments	Mar. 31, 2015Segments	Sep. 30, 2016CustomerSegments	Sep. 30, 2015Customer
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments | Segments			2		2
As Previously Reported [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments | Segments				1
Customer Concentration Risk [Member] | Net Sales [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers greater than ten percent threshold | Customer	2	2			2	2
Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	69.00%	61.00%			65.00%	64.00%
Number of customers | Customer	10	10			10	10
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer One [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	27.80%	14.70%			25.60%	15.00%
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	11.20%	10.10%			11.10%	10.90%
Geographic Concentration Risk [Member] | Property, Plant and Equipment [Member] | Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage					96.00%

Geographic and Segment Inform62

Geographic and Segment Information - Schedule of Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Total net sales	$ 192,296	$ 154,382	$ 507,507	$ 481,282
Total gross profit	39,139	34,699	110,137	104,962
Operating Segments [Member] | Foundry Services Group [Member]
Segment Reporting Information [Line Items]
Total net sales	73,863	71,471	196,152	224,953
Total gross profit	17,340	18,681	45,820	51,241
Operating Segments [Member] | Standard Products Group [Member]
Segment Reporting Information [Line Items]
Total net sales	118,325	82,720	310,921	255,823
Total gross profit	21,691	15,827	64,836	53,216
Operating Segments [Member] | Standard Products Group [Member] | Display Solutions [Member]
Segment Reporting Information [Line Items]
Total net sales	84,706	48,314	217,171	153,585
Operating Segments [Member] | Standard Products Group [Member] | Power Solutions [Member]
Segment Reporting Information [Line Items]
Total net sales	33,619	34,406	93,750	102,238
Other Non Segment [Member]
Segment Reporting Information [Line Items]
Total net sales	108	191	434	506
Total gross profit	$ 108	$ 191	$ (519)	$ 505

Geographic and Segment Inform63

Geographic and Segment Information - Net Sales by Region, Based on Location of Products are Billed (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 192,296	$ 154,382	$ 507,507	$ 481,282
Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	58,521	56,097	155,971	180,322
Asia Pacific (Other Than Korea) [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	107,551	84,236	289,451	238,995
U.S.A. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	15,396	6,096	28,510	45,776
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	10,497	7,407	32,763	14,768
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 331	$ 546	$ 812	$ 1,421

Accumulated Other Comprehensi64

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Equity [Abstract]
Foreign currency translation adjustments	$ (27,383)	$ (190)
Derivative adjustments	(83)	(41)
Total	$ (27,466)	$ (231)

Accumulated Other Comprehensi65

Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning			$ (62,330)	$ (18,502)
Total other comprehensive income (loss)	$ (27,423)	$ 36,293	(27,235)	47,570
Balance, ending	(64,921)	(72,849)	(64,921)	(72,849)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning	(43)	(22,372)	(190)	(35,551)
Other comprehensive income (loss) before reclassifications	(27,340)	37,583	(27,193)	50,762
Total other comprehensive income (loss)	(27,340)	37,583	(27,193)	50,762
Balance, ending	(27,383)	15,211	(27,383)	15,211
Derivative Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning		(1,417)	(41)	485
Other comprehensive income (loss) before reclassifications	(83)	(2,869)	(42)	(4,286)
Amounts reclassified from accumulated other comprehensive income		1,579		1,094
Total other comprehensive income (loss)	(83)	(1,290)	(42)	(3,192)
Balance, ending	(83)	(2,707)	(83)	(2,707)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning	(43)	(23,789)	(231)	(35,066)
Other comprehensive income (loss) before reclassifications	(27,423)	34,714	(27,235)	46,476
Amounts reclassified from accumulated other comprehensive income		1,579		1,094
Total other comprehensive income (loss)	(27,423)	36,293	(27,235)	47,570
Balance, ending	$ (27,466)	$ 12,504	$ (27,466)	$ 12,504

Earnings (Loss) per Share - Sch

Earnings (Loss) per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 29,866	$ (57,066)	$ 20,175	$ (107,721)
Weighted average common stock outstanding
Basic	34,849,805	34,664,246	34,755,276	34,273,265
Diluted	35,302,706	34,664,246	35,077,315	34,273,265
Earnings (loss) per share
Basic	$ 0.86	$ (1.65)	$ 0.58	$ (3.14)
Diluted	$ 0.85	$ (1.65)	$ 0.58	$ (3.14)

Earnings (Loss) per Share - S67

Earnings (Loss) per Share - Schedule of Antidilutive Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding units and warrants excluded from computation of diluted loss per share/unit	2,457,955	3,257,028	3,545,576	3,257,028
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding units and warrants excluded from computation of diluted loss per share/unit		135,370		135,370

Earnings (Loss) per Share - Add

Earnings (Loss) per Share - Additional Information (Detail) - $ / shares	Mar. 05, 2015	Sep. 30, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Beneficial ownership percentage of acquiring person	12.50%
Beneficial ownership percentage of passive institutional investor	20.00%
Date on which rights expire	Mar. 5, 2017
Percentage of ownership in outstanding common stock	50.00%
Minimum [Member]
Class of Stock [Line Items]
Percentage of assets or earnings power sold	50.00%
Series A Junior Participating Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value	$ 0.01
Purchase price of preferred Stock	12
Board of Directors [Member]
Class of Stock [Line Items]
Redemption price per right	$ 0.001

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Oct. 18, 2016	Jan. 22, 2016	Dec. 10, 2015	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Proceeds from insurance settlement					$ 29,600,000
Insurance proceeds in restricted cash reclassified from other receivables					$ 29,600,000
Disbursements of accrued claims and settlements				$ 23,500,000
Other Receivables [Member]
Loss Contingencies [Line Items]
Insurance receivable						$ 29,600,000
Accrued Expense [Member]
Loss Contingencies [Line Items]
Accrued claim settlement						$ 23,500,000
Thomas, et al. v. MagnaChip Semiconductor Corp. et al. [Member]
Loss Contingencies [Line Items]
Damages sought, value			$ 23,500,000
Shareholder Derivative Actions [Member]
Loss Contingencies [Line Items]
Proceeds from insurance settlement		$ 3,000,000
Shareholder Derivative Actions [Member] | Subsequent Event [Member]
Loss Contingencies [Line Items]
Attorneys' fee and litigation expenses	$ 750,000
Period of appeal	60 days