Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Magnachip Semiconductor Corporation | ||
Entity Central Index Key | 0001325702 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 643,221,377 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Common Stock, Shares Outstanding | 43,536,977 | ||
Entity File Number | 001-34791 | ||
Entity Tax Identification Number | 83-0406195 | ||
Entity Address, Address Line One | c/o Magnachip Semiconductor, Ltd. | ||
Entity Address, Address Line Two | 15F, 76 Jikji-daero 436beon-gil | ||
Entity Address, City or Town | Heungdeok-gu | ||
Entity Address, Postal Zip Code | 28581 | ||
City Area Code | 82 | ||
Local Phone Number | (2) 6903-3000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Address, Country | KR | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Samil PricewaterhouseCoopers | ||
Auditor Firm ID | 1103 | ||
Auditor Location | Seoul, Korea | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | MX | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 225,477 | $ 279,547 |
Accounts receivable, net | 35,380 | 50,954 |
Inventories, net | 39,883 | 39,370 |
Other receivables (Note 18) | 7,847 | 25,895 |
Prepaid expenses | 10,560 | 7,675 |
Hedge collateral (Note 10) | 2,940 | 3,060 |
Other current assets (Note 1) | 15,766 | 2,619 |
Total current assets | 337,853 | 409,120 |
Property, plant and equipment, net | 110,747 | 107,882 |
Operating lease right-of-use assets | 5,265 | 4,275 |
Intangible assets, net | 1,930 | 2,377 |
Long-term prepaid expenses | 10,939 | 8,243 |
Deferred income taxes (Note 16) | 38,324 | 41,095 |
Other non-current assets | 11,587 | 10,662 |
Total assets | 516,645 | 583,654 |
Current liabilities | ||
Accounts payable | 17,998 | 37,593 |
Other accounts payable | 9,702 | 6,289 |
Accrued expenses (Note 9) | 9,688 | 20,071 |
Accrued income taxes | 3,154 | 11,823 |
Operating lease liabilities | 1,397 | 2,323 |
Other current liabilities | 5,306 | 7,382 |
Total current liabilities | 47,245 | 85,481 |
Accrued severance benefits, net | 23,121 | 33,064 |
Non-current operating lease liabilities | 4,091 | 1,952 |
Other non-current liabilities | 14,035 | 10,395 |
Total liabilities | 88,492 | 130,892 |
Commitments and contingencies (Note 20) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,432,449 shares issued and 43,824,575 outstanding at December 31, 2022 and 55,905,320 shares issued and 45,659,304 outstanding at December 31, 2021 | 564 | 559 |
Additional paid-in capital | 266,058 | 241,197 |
Retained earnings | 335,506 | 343,542 |
Treasury stock, 12,607,874 shares at December 31, 2022 and 10,246,016 shares at December 31, 2021, respectively | (161,422) | (130,306) |
Accumulated other comprehensive loss | (12,553) | (2,230) |
Total stockholders' equity | 428,153 | 452,762 |
Total liabilities and stockholders' equity | $ 516,645 | $ 583,654 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 56,432,449 | 55,905,320 |
Common stock, shares outstanding | 43,824,575 | 45,659,304 |
Treasury stock, shares | 12,607,874 | 10,246,016 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 337,658 | $ 474,230 | $ 507,059 |
Cost of sales | 236,394 | 320,687 | 378,742 |
Gross profit | 101,264 | 153,543 | 128,317 |
Operating expenses: | |||
Selling, general and administrative expenses | 50,872 | 52,440 | 49,974 |
Research and development expenses | 52,338 | 51,212 | 45,698 |
Merger-related costs (income), net | 0 | (35,527) | 653 |
Early termination and other charges, net | 3,298 | 2,011 | 4,976 |
Total operating expenses | 106,508 | 70,136 | 101,301 |
Operating income (loss): | (5,244) | 83,407 | 27,016 |
Interest income | 5,980 | 2,609 | 2,740 |
Interest expense | (1,157) | (1,371) | (18,147) |
Foreign currency loss, net | (3,019) | (11,853) | (382) |
Loss on early extinguishment of borrowings | 0 | 0 | (766) |
Other income, net | 561 | 1,177 | 370 |
Income (loss) from continuing operations before income tax expense (benefit) | (2,879) | 73,969 | 10,831 |
Income tax expense (benefit) | 5,157 | 17,261 | (46,228) |
Income (loss) from continuing operations | (8,036) | 56,708 | 57,059 |
Income from discontinued operations, net of tax | 287,906 | ||
Net income (loss) | $ (8,036) | $ 56,708 | $ 344,965 |
Basic earnings (loss) per common share— | |||
Continuing operations | $ (0.18) | $ 1.26 | $ 1.62 |
Discontinued operations | 0 | 0 | 8.18 |
Total | (0.18) | 1.26 | 9.8 |
Diluted earnings (loss) per common share— | |||
Continuing operations | (0.18) | 1.21 | 1.35 |
Discontinued operations | 0 | 0 | 6.19 |
Total | $ (0.18) | $ 1.21 | $ 7.54 |
Weighted average number of shares— | |||
Basic | 44,850,791 | 44,879,412 | 35,213,525 |
Diluted | 44,850,791 | 47,709,373 | 46,503,586 |
Standard Products Business [Member] | |||
Net sales | $ 301,896 | $ 433,099 | $ 465,519 |
Cost of sales | 202,347 | 283,503 | 338,420 |
Gross profit | 99,549 | 149,596 | 127,099 |
Fab Three Foundry Services [Member] | |||
Net sales | 35,762 | 41,131 | 41,540 |
Cost of sales | 34,047 | 37,184 | 40,322 |
Gross profit | $ 1,715 | $ 3,947 | $ 1,218 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (8,036) | $ 56,708 | $ 344,965 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (10,558) | (2,839) | 6,274 |
Derivative adjustments | |||
Fair valuation of derivatives | (8,279) | (3,913) | 1,452 |
Reclassification adjustment for loss (gain) on derivatives included in net income (loss) | 8,514 | 819 | (1,363) |
Total other comprehensive income (loss) | (10,323) | (5,933) | 6,363 |
Total comprehensive income (loss) | $ (18,359) | $ 50,775 | $ 351,328 |
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] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance beginning at Dec. 31, 2019 | $ (14,981) | $ 439 | $ 152,404 | $ (58,131) | $ (107,033) | $ (2,660) | |
Balance, Shares beginning at Dec. 31, 2019 | 34,800,312 | ||||||
Stock-based compensation | 6,699 | 6,699 | |||||
Exercise of stock options | 3,918 | $ 5 | 3,913 | ||||
Exercise of stock options, Shares | 510,648 | ||||||
Settlement of restricted stock units | 6 | (6) | |||||
Settlement of restricted stock units, Shares | 581,215 | ||||||
Acquisition of treasury stock | (1,364) | (1,364) | |||||
Acquisition of treasury stock, Shares | (108,828) | ||||||
Other comprehensive income, net | 6,363 | 6,363 | |||||
Net income (loss) | 344,965 | 344,965 | |||||
Balance ending at Dec. 31, 2020 | 345,600 | $ 450 | 163,010 | 286,834 | (108,397) | 3,703 | |
Balance, Shares ending at Dec. 31, 2020 | 35,783,347 | ||||||
Stock-based compensation | 7,704 | 7,704 | |||||
Exchange of exchangeable senior note | 83,740 | $ 101 | 83,639 | ||||
Exchange of exchangeable senior note, Shares | 10,144,131 | ||||||
Exercise of stock options | 4,279 | 3 | 4,276 | ||||
Exercise of stock options, Shares | 336,870 | ||||||
Settlement of restricted stock units | 5 | (5) | |||||
Settlement of restricted stock units, Shares | 480,465 | ||||||
Accelerated stock repurchase | (37,500) | (17,427) | (20,073) | ||||
Accelerated stock repurchase, Shares | (994,695) | ||||||
Acquisition of treasury stock | (1,836) | (1,836) | |||||
Acquisition of treasury stock, Shares | (90,814) | ||||||
Other comprehensive income, net | (5,933) | (5,933) | |||||
Net income (loss) | 56,708 | 56,708 | |||||
Balance ending at Dec. 31, 2021 | $ 452,762 | 559 | 241,197 | 343,542 | (130,306) | (2,230) | |
Balance, Shares ending at Dec. 31, 2021 | 45,659,304 | 45,659,304 | |||||
Stock-based compensation | $ 6,037 | 6,037 | |||||
Exercise of stock options | $ 1,786 | 1 | 1,785 | ||||
Exercise of stock options, Shares | 152,326 | 152,326 | |||||
Settlement of restricted stock units | $ (174) | 4 | (178) | ||||
Settlement of restricted stock units, Shares | 374,803 | ||||||
Accelerated stock repurchase | 17,217 | (17,217) | |||||
Accelerated stock repurchase, Shares | (1,031,576) | ||||||
Acquisition of treasury stock | (13,899) | (13,899) | |||||
Acquisition of treasury stock, Shares | (1,330,282) | ||||||
Other comprehensive income, net | (10,323) | (10,323) | |||||
Net income (loss) | (8,036) | (8,036) | |||||
Balance ending at Dec. 31, 2022 | $ 428,153 | $ 564 | $ 266,058 | $ 335,506 | $ (161,422) | $ (12,553) | |
Balance, Shares ending at Dec. 31, 2022 | 43,824,575 | 43,824,575 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ (8,036) | $ 56,708 | $ 344,965 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation and amortization | 15,000 | 14,239 | 16,481 |
Provision for severance benefits | 6,289 | 8,282 | 16,743 |
Amortization of debt issuance costs and original issue discount | 261 | 2,220 | |
Loss (gain) on foreign currency, net | 19,729 | 32,432 | (23,233) |
Provision for inventory reserves | 9,574 | 2,244 | 3,695 |
Stock-based compensation | 6,037 | 7,704 | 6,699 |
Loss on early extinguishment of borrowings | 0 | 0 | 766 |
Gain on sale of discontinued operations | (287,117) | ||
Deferred income tax assets | 278 | 918 | (44,441) |
Other, net | 664 | (613) | 217 |
Changes in operating assets and liabilities | |||
Accounts receivable, net | 10,276 | 7,505 | (19,268) |
Unbilled accounts receivable, net | 14,260 | ||
Inventories | (12,626) | (5,939) | (816) |
Other receivables | 18,146 | (21,538) | 6,954 |
Other current assets | (4,150) | 12,397 | 13,561 |
Accounts payable | (16,325) | (11,437) | 4,907 |
Other accounts payable | (9,410) | (7,798) | (12,000) |
Accrued expenses | (7,228) | 4,637 | (26,201) |
Accrued income taxes | (8,400) | (1) | 10,825 |
Deferred revenue | (1,261) | (131) | 2,174 |
Other current liabilities | (645) | 1,445 | 279 |
Other non-current liabilities | 749 | (1,398) | 3,521 |
Contributions to severance insurance deposit accounts | (7,899) | (5,688) | (11,921) |
Payment of severance benefits | (6,012) | (6,679) | (12,076) |
Other, net | 415 | 193 | (3,724) |
Net cash provided by operating activities | 5,165 | 87,743 | 7,470 |
Cash flows from investing activities | |||
Proceeds from settlement of hedge collateral | 15,232 | 5,214 | 13,762 |
Payment of hedge collateral | (15,282) | (3,349) | (8,839) |
Proceeds from disposal of property, plant and equipment | 550 | 1,446 | 65 |
Purchase of property, plant and equipment | (23,394) | (32,212) | (36,100) |
Payment for intellectual property registration | (390) | (614) | (741) |
Collection of guarantee deposits | 3,192 | 1,024 | |
Payment of guarantee deposits | (2,381) | (5,001) | (1,236) |
Proceeds from sale of discontinued operations | 350,553 | ||
Other, net | 737 | (114) | (6) |
Net cash provided by (used in) investing activities | (24,928) | (31,438) | 318,482 |
Cash flows from financing activities | |||
Repayment of borrowings | (224,250) | ||
Proceeds from exercise of stock options | 1,786 | 4,279 | 3,918 |
Acquisition of treasury stock | (13,960) | (1,653) | (1,125) |
Acquisition of stock under accelerated stock repurchase agreement | (20,073) | ||
Payment under accelerated stock repurchase agreement | (17,427) | ||
Repayment of financing related to water treatment facility arrangement | (500) | (563) | (546) |
Others | (70) | (107) | (278) |
Net cash used in financing activities | (12,744) | (35,544) | (222,281) |
Effect of exchange rates on cash and cash equivalents | (21,563) | (21,154) | 24,612 |
Net increase (decrease) in cash and cash equivalents | (54,070) | (393) | 128,283 |
Cash and cash equivalents at beginning of period | 279,547 | 279,940 | 151,657 |
Cash and cash equivalents at end of period | 225,477 | 279,547 | 279,940 |
Supplemental cash flow information | |||
Cash paid for interest | 2,094 | 22,221 | |
Cash paid for income taxes | 18,988 | 12,672 | 23,056 |
Non-cash investing and financing activities | |||
Property, plant and equipment additions in other accounts payable | 190 | 747 | |
Acquisition of treasury stock to satisfy the tax withholding obligations in connection with equity-based compensation | 387 | 826 | $ 643 |
Unsettled common stock repurchases | $ 378 | ||
Exchange of exchangeable senior notes into common stock | $ 83,740 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Business Magnachip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, computing, industrial and automotive applications. On September 1, 2020 (the “Closing Date”), the Company completed the sale of the Company’s Foundry Services Group business and its fabrication facility located in Cheongju, Korea, known as “Fab 4” to Key Foundry Co., Ltd. (the “Buyer”), a Korean corporation, in exchange for a purchase price equal to approximately $350.6 million in cash, pursuant to the terms of a business transfer agreement (the “Business Transfer Agreement”) dated March 31, 2020 by and among the Company and Magnus Semiconductor, LLC, a Korean limited liability company (“Magnus”). The purchase price was paid in a combination of U.S. Dollars in the amount of $46.5 million and Korean Won in the amount of approximately KRW 360.6 billion. In addition to the purchase price, the Buyer assumed all severance liabilities relating to the transferred employees, which had a value of approximately $100 million. The Buyer is a wholly owned subsidiary of Magnus, which was established by Alchemist Capital Partners Korea Co., Ltd. and Credian Partners, Inc. On April 20, 2020, Magnus assigned, and the Buyer assumed, all rights and obligations of Magnus under the Business Transfer Agreement. This divestiture of the Foundry Services Group business and Fab 4 was made in connection with the Company’s strategic shift of its operational focus to its standard products business. The Foundry Services Group was historically a reportable segment. The Foundry Services Group business was classified as discontinued operations in the Company’s consolidated statements of operations and excluded from both continuing operations and segment results for the 2020 fiscal year. Accordingly, the Company has one reportable segment, its standard products business, together with transitional foundry services associated with its fabrication facility located in Gumi, Korea, known as “Fab 3,” that it expects to perform for the Buyer for a period of up to three years from the Closing Date (the “Transitional Fab 3 Foundry Services”). The Company’s standard products business includes its Display Solutions and Power Solutions business lines. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and a wide range of applications including smartphones, TVs, automotive and IT applications such as monitors, notebook PCs, tablet PCs as well as AR/VRs. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer, computing, servers, automotive, and industrial applications. Basis of Presentation The consolidated financial statements are presented in accordance with U.S. GAAP. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. The consolidated statement of cash flows for the 2020 fiscal year has not been adjusted to separately disclose cash flows related to discontinued operations, but the material items in the operating and investing activities of the cash flow relating to discontinued operations for the same period are disclosed in Note 2. Unless otherwise stated, information in these notes to consolidated financial statements relates to the Company’s continuing operations and excludes the discontinued operations. See Note 2 “Discontinued Operations” for additional information. Principles of Consolidation The consolidated financial statements include the accounts of the Company including its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, stock-based compensation, property, plant and equipment, leases, other long-lived assets, long-term employee benefits, contingencies liabilities, estimated future cash flows and other assumptions used in long-lived asset impairment tests, and calculation of current and deferred income taxes and deferred tax valuation allowances, among others. Although these estimates and assumptions are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be significantly different from the estimates. The Company assessed the impact of COVID-19 COVID-19 COVID-19 Discontinued Operations The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standards Codification (“ASC”) 205, “Presentation of Financial Statements” (“ASC 205”) and ASC 360, “Property, Plant and Equipment” (“ASC 360”). The results of discontinued operations are reported in “Income from discontinued operations, net of tax” in the accompanying consolidated statements of operations for the year ended December 31, 2020 commencing in the period in which the business meets the criteria. Foreign Currency Translation The Company has assessed in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), the functional currency of each of its subsidiaries in Luxembourg and the Netherlands and has designated the U.S. dollar to be their respective functional currencies. The Korean Won is the functional currency for the Company’s Korean subsidiary, which is the primary operating subsidiary of the Company. The Company and its other subsidiaries are utilizing their local currencies as their functional currencies. The financial statements of the subsidiaries in functional currencies other than the U.S. dollar are translated into the U.S. dollar in accordance with ASC 830. All the assets and liabilities are translated to the U.S. dollar at the end-of-period Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity date of three months or less when purchased. Accounts Receivable Reserves The Company makes estimates of expected credit losses for the allowance for credit losses based upon its assessment of various factors, including historical collection experience, the age of the accounts receivable balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The Company also records an estimate for sales returns, included within accounts receivable, net, based on the historical experience of the amount of goods that will be returned and refunded or replaced. Sales of Accounts Receivable The Company accounts for transfers of financial assets under ASC 860, “Transfers and Servicing,” as either sales or financings. Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. If the transfer does not meet these criteria, the transfer is accounted for as a financing. Financial assets that are treated as sales are removed from the Company’s accounts with any realized gain or loss reflected in earning during the period of sale. Inventories Inventories are stated at the lower of cost or net realizable value, using the first in, first out method (“FIFO”). If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable value, and the difference is recognized as a loss on valuation of inventories within cost of sales. Inventory reserves are established when conditions indicate that the net realizable value is less than costs due to physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. The Company evaluates the sufficiency of inventory reserves and takes into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product age and other factors. Reserves are also established for excess inventory based on the Company’s current inventory levels and projected demand and its ability to sell those specific products. Situations that could cause these inventory reserves include a decline in business and economic conditions, decline in consumer confidence caused by changes in market conditions, sudden and significant decline in demand for the Company’s products, inventory obsolescence because of rapidly changing technology and consumer requirements, or failure to estimate end customer demand properly. A reduction of these inventory reserves may be recorded if previously reserved items are subsequently sold as a result of unexpected changes to certain aforementioned situations. In addition, as prescribed in ASC 330, “Inventory,” once a reserve is established for a particular item based on the Company’s assessment as described above, it is maintained until the related item is sold or scrapped as a new cost basis has been established that cannot subsequently be marked up. In addition, the cost of inventories is determined based on the normal capacity of the Company’s fabrication facility. In case the capacity utilization is lower than a certain level that management believes to be normal, the fixed overhead costs per production unit which exceeds those under normal capacity are charged to cost of sales rather than capitalized as inventories. Advances to Suppliers The Company, from time to time, may make advances in form of prepayments or deposits to suppliers, including external foundries, to meet its planned production. The Company recorded advances of $6,605 thousand and $1,708 thousand as other current assets as of December 31, 2022 and 2021, respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. Buildings 30 - 40 years Building related structures 10 - 20 years Machinery and equipment 10 - 12 years Others 3 - 10 years Routine maintenance and repairs are charged to expense as incurred. Expenditures that enhance the value or significantly extend the useful lives of the related assets are capitalized. Impairment of Long-Lived Assets The Company reviews property, plant and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, “Property, Plant and Equipment.” Recoverability is measured by comparing its carrying amount with the future net undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured as the difference between the carrying amount of the assets and the fair value of assets using the present value of the future net cash flows generated by the respective long-lived assets. Leases The Company determines if an arrangement is a lease at inception of a contract considering whether the arrangement conveys the right to control the use of an identified asset over the period of use. Control of an underlying asset is conveyed if the Company has the right to direct the use of, and to obtain substantially all of the economic benefits from the use of, the identified asset. The Company accounts for lease transactions as either an operating or a finance lease, depending on the terms of the underlying lease arrangement. Assets related to operating leases are recorded on the balance sheet as operating lease right-of-use non-current non-current right-of-use non-current Right-of-use Right-of-use right-of-use recorded using the interest method. The amortization and interest expense are recorded separately in the consolidated statements of operations. Amortization of operating lease right-of-use An extension or contraction of a lease term is considered if the related option to extend or early terminate the lease is reasonably certain to be exercised by the Company. Operating lease right-of-use non-lease non-lease Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates are not included in the right-of-use The Company does not recognize operating lease right-of-use Intangible Assets Intellectual property assets acquired represent rights under patents, trademarks and property use rights and are amortized over their respective periods of benefit, ranging up to ten years, on a straight-line basis. Fair Value Disclosures of Financial Instruments The Company follows ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by ASC 820 are: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, such as cash equivalents, accounts receivable, other receivables, accounts payable and other accounts payable approximate their fair values because of the short maturity of these instruments. Accrued Severance Benefits The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary, Magnachip Semiconductor, Ltd. Pursuant to 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 December 31, 2022, 97% of all employees of the Company were eligible for severance benefits. Beginning in July 2018, the Company began contributing to certain severance insurance deposit accounts a percentage of severance benefits, which may be adjusted from time to time, accrued for eligible employees for their services beginning January 1, 2018 pursuant to Employee Retirement Benefit Security Act of Korea. These accounts consist of time deposits and other guaranteed principal and interest accounts, and are maintained at insurance companies, banks or security companies for the benefit of the Company’s employees. Accrued severance benefits were partly funded through a group severance insurance plan. The amounts funded under this insurance plan were classified as a reduction of the accrued severance benefits. In accordance with the National Pension Act of the Republic of Korea, a certain portion of accrued severance benefits was deposited with the National Pension Fund and deducted from the accrued severance benefits. The contributed amount is paid to employees from the National Pension Fund upon their retirement. Revenue Recognition The Company recognizes revenue when it satisfies the performance obligation of transferring control over a product or service to a customer. Revenue is measured based on the consideration specified in a contract with a customer, which consideration is paid in exchange for a product or service. The Company sells products manufactured based on the Company’s design. The Company’s products are either standardized with an alternative use or the Company does not have an enforceable right to payment for the related manufacturing services completed to date. Therefore, revenue for the products is recognized when a customer obtains control of the product, which is generally upon product shipment, delivery at the customer’s location or upon customer acceptance, depending on the terms of the arrangement. In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction, and that is collected by the Company from a customer, is excluded from revenue and related revenue is presented in the statements of operations on a net basis. The Company provides warranties under which customers can return defective products. The Company estimates the costs related to warranty claims and repair or replacements, and records them as components of cost of sales. In addition, the Company offers sales returns (other than those that relate to defective products under warranty), cash discounts for early payments and sales incentives, and certain allowances to the Company’s customers, including the Company’s distributors. The Company records reserves for those returns, discounts, incentives and allowances as a deduction from sales, based on historical experience and other quantitative and qualitative factors. Substantially all of the Company’s contracts are one year or less in duration. The standard payment terms with customers are generally thirty to sixty days from the time of shipment, product delivery to the customer’s location or customer acceptance, depending on the terms of the related arrangement. All amounts billed to a customer related to shipping and handling are classified as sales while all costs incurred by the Company for shipping and handling are classified as selling, general and administrative expenses. The amounts charged to selling, general and administrative expenses were $1,060 thousand, $1,271 thousand and $993 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. Of the recorded deferred revenue of $2,383 thousand as of December 31, 2021 and $2,680 thousand as of December 31, 2020, $2,383 thousand and $2,680 thousand were recognized as revenue during the years ended December 31, 2022 and 2021, respectively. Advertising The Company expenses advertising costs as incurred. Advertising expenses were $46 thousand, $71 thousand and $87 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. Product Warranties The Company records, in other current liabilities, warranty liabilities for the estimated costs that may be incurred under its basic limited warranty. The standard limited warranty period is one to two years for the majority of products. This warranty covers defective products, and related liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liabilities include historical and anticipated rates of warranty claims and repair or replacement costs per claim to satisfy the Company’s warranty obligation. The Company periodically assesses the adequacy of those recorded warranty liabilities and adjusts its estimates when necessary. Derivative Financial Instruments The Company applies the provisions of ASC 815, “Derivatives and Hedging” (“ASC 815”). This statement requires the recognition of all derivative instruments as either assets or liabilities measured at fair value. Under the provisions of ASC 815, the Company may designate a derivative instrument as hedging the exposure to variability in expected future cash flows that are attributable to a particular risk (a “cash flow hedge”) or hedging the exposure to changes in the fair value of an asset or a liability (a “fair value hedge”). Special accounting for qualifying hedges allows the effective portion of a derivative instrument’s gains and losses to offset related results on the hedged item in the consolidated statements of operations and requires that a company formally document, designate and assess the effectiveness of the transactions that receive hedge accounting treatment. Both at the inception of a hedge and on an ongoing basis, a hedge must be expected to be highly effective in achieving offsetting changes in cash flows or fair value attributable to the underlying risk being hedged. If the Company determines that a derivative instrument is no longer highly effective as a hedge, it discontinues hedge accounting prospectively and future changes in the fair value of the derivative are recognized in current earnings. The Company assesses hedge effectiveness at the end of each quarter. The Company does not offset derivative assets and liabilities within the consolidated balance sheets. In accordance with ASC 815, changes in the fair value of derivative instruments that are cash flow hedges are recognized in accumulated other comprehensive income or loss and reclassified into earnings in the period in which the hedged item affects earnings. Derivative instruments that do not qualify, or cease to qualify, as hedges must be adjusted to fair value and the adjustments are recorded through net income or loss. The cash flows from derivative instruments receiving hedge accounting treatment are classified in the same categories as the hedged items in the consolidated statements of cash flows. Research and Development Research and development expenses are expensed as incurred and include wafers, masks, employee expenses, contractor fees, building costs, utilities and administrative expenses. Licensed Patents and Technologies The Company has entered into a number of royalty agreements to license patents and technology used in the design of its products. The Company carries two types of royalties: lump-sum Lump-sum non-refundable Running royalties are paid based on the revenue of related products sold by the Company. Stock-Based Compensation The Company follows the provisions of ASC 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense, net of the estimated forfeiture rate, over the requisite service period. As permitted under ASC 718, the Company elected to recognize compensation expense for all options with graded vesting based on the graded attribution method. The Company uses the Black-Scholes option-pricing model to measure the grant-date-fair-value of options. The Black-Scholes model requires certain assumptions to determine an option’s fair value, including expected term, risk free interest rate and expected volatility. The expected term of each option grant was based on employees’ expected exercises and post-vesting employment termination behavior and the risk free interest rate was based on the U.S. Treasury yield curve for the period corresponding with the expected term at the time of grant. No dividends were assumed for this calculation of option value. Earnings (Loss) Per Share In accordance with ASC 260, “Earnings Per Share”, the Company computes basic earnings per share by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution of potential common stock outstanding during the period including stock options and restricted stock units, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options and restricted stock units), and convertibles, using the if-converted Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in a company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. Valuation allowances are established when it is necessary to reduce deferred tax assets to the amount expected to be realized. The evaluation of the recoverability of the deferred tax assets and the need for a valuation allowance requires management to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including historical operating results, expected timing of the reversals of existing temporary differences, the Company’s ability to generate future taxable income, and tax planning strategies. The Company recognizes and measures uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step Concentration of Credit Risk The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral for customers on accounts receivable. The Company maintains reserves for potential credit losses, which are periodically reviewed. Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, 470-20) 815-40)” 2020-06”), 2020-06 2020-06 In May 2021, the FASB issued ASU No. 2021-04, 470-50)”, 815-40): 2021-04”), 2021-04 2021-04 2021-04 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Assets Held for Sale [Abstract] | |
Discontinued Operations | 2. Discontinued Operations On September 1, 2020, the Company completed the sale of its Foundry Services Group business and Fab 4. As a result of the sale of the Foundry Services Group business and Fab 4, the Company recorded a gain of $287,117 thousand and all operations from the Foundry Services Group business and Fab 4 were classified as discontinued operations for all periods presented. Following the consummation of the sale, and for up to three years, the Company is expected to provide the Transitional Fab 3 Foundry Services at an agreed upon cost plus mark-up. The following table summarizes the results from discontinued operations, net of tax, for the year ended December 31, 2020. Year Ended (In thousands of U.S. dollars) Revenues: Net sales—Foundry Services Group $ 254,732 Net sales—transitional Fab 3 foundry services (25,887 ) Total revenues 228,845 Cost of sales: Cost of sales—Foundry Services Group 182,872 Cost of sales—transitional Fab 3 foundry services (25,887 ) Total cost of sales 156,985 Gross profit 71,860 Operating expenses: Selling, general and administrative expenses 14,797 Research and development expenses 19,484 Restructuring and other charges 15,873 Total operating expenses 50,154 Operating income from discontinued operations 21,706 Foreign currency gain, net 1,277 Others, net 72 Income from discontinued operations before income tax expense 23,055 Income tax expense 11,452 Gain on sale of discontinued operations 287,117 Transaction costs (10,814 ) Income from discontinued operations, net of tax 287,906 For the year ended December 31, 2020, the Company recorded $15,873 thousand, in professional fees and transaction related expenses incurred in connection with the sale of the Foundry Services Group business and Fab 4, and recorded such costs as restructuring and other charges. The following table provides supplemental cash flows information related to discontinued operations: Year Ended (In thousands of U.S. dollars) Significant non-cash Depreciation and amortization $ 5,365 Provision for severance benefits 8,209 Stock-based compensation 388 Investing activities: Capital expenditures $ (5,838 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements ASC 820 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820 requires, among other things, the Company’s valuation techniques used to measure fair value to maximize the use of observable inputs and minimize the use of unobservable inputs. Fair Value of Financial Instruments As of December 31, 2022, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value December 31, 2022 Fair Value Measurement December 31, 2022 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilitie $ 2,015 $ 2,015 — $ 2,015 — As of December 31, 2021, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value December 31, 2021 Fair Value Measurement December 31, 2021 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilitie $ 2,020 $ 2,020 — $ 2,020 — Items not reflected in the table above include cash equivalents, accounts receivable, other receivables, accounts payable, and other accounts payable, fair value of which approximate carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs. Fair Values Measured on a Non-recurring The Company’s non-financial non-recurring |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable as of December 31, 2022 and 2021 consisted of the following (in thousands): December 31, 2022 2021 Accounts receivable $ 35,610 $ 50,363 Notes receivable 32 1,242 Less: Allowance for credit losses (79 ) (466 ) Sales return reserves (183 ) (185 ) Accounts receivable, net $ 35,380 $ 50,954 Changes in allowance for credit losses for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (466 ) $ (188 ) $ (49 ) Provision — (302 ) (131 ) Write off 378 — — Translation adjustments 9 24 (8 ) Ending balance $ (79 ) $ (466 ) $ (188 ) Changes in sales return reserves for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (185 ) $ (173 ) $ (387 ) Reversal (provision) (11 ) (27 ) 22 Usage — — 196 Translation adjustments 13 15 (4 ) Ending balance $ (183 ) $ (185 ) $ (173 ) Commencing in March 2012, the Company has been a party to an agreement to sell selected trade accounts receivable to a financial institution from time to time. After a sale, the Company does not retain any interest in the receivables and the applicable financial institution collects these accounts receivable directly from the customer. There were no sale of accounts receivable for the years ended December 31, 2022, 2021 and 2020. 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 | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories as of December 31, 2022 and 2021 consist of the following (in thousands): December 31, 2022 2021 Finished goods $ 6,799 $ 9,594 Semi-finished goods and work-in-process 40,265 25,968 Raw materials 7,460 9,443 Materials in-transit 36 95 Less: inventory reserve (14,677 ) (5,730 ) Inventories, net $ 39,883 $ 39,370 Changes in inventory reserve for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (5,730 ) $ (5,901 ) $ (5,947 ) Change in reserve Inventory reserve charged to costs of sales (13,310 ) (7,626 ) (7,268 ) Sale of previously reserved inventory 3,631 5,349 4,349 (9,679 ) (2,277 ) (2,919 ) Write off 582 1,875 2,679 Translation adjustments 150 573 (408 ) Reclassified to assets held for sale — — 694 Ending balance $ (14,677 ) $ (5,730 ) $ (5,901 ) Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods, work-in-process |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment Property, plant and equipment as of December 31, 2022 and 2021 are comprised of the following (in thousands): December 31, 2022 2021 Buildings and related structures $ 24,780 $ 24,273 Machinery and equipment 137,666 105,300 Finance lease right-of-use 389 316 Others 33,890 32,396 196,725 162,285 Less: accumulated depreciation (101,502 ) (94,119 ) Land 13,034 13,898 Construction in progress 2,490 25,818 Property, plant and equipment, net $ 110,747 $ 107,882 Aggregate depreciation expenses totaled $14,317 thousand, $13,495 thousand and $10,448 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets Intangible assets as of December 31, 2022 and 2021 are comprised of the following (in thousands): December 31, 2022 Gross amount Accumulated amortization Net amount Intellectual property assets $ 9,111 $ (7,181 ) $ 1,930 Intangible assets $ 9,111 $ (7,181 ) $ 1,930 December 31, 2021 Gross amount Accumulated amortization Net amount Intellectual property assets $ 9,312 $ (6,935 ) $ 2,377 Intangible assets $ 9,312 $ (6,935 ) $ 2,377 Aggregate amortization expense for intangible assets totaled $683 thousand, $744 thousand and $668 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. The aggregate amortization expense of intangible assets for the next five years are estimated to be $595 thousand, $456 thousand, $339 thousand, $235 thousand and $148 thousand for the years ended December 31, 2023, 2024, 2025, 2026 and 2027, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 8. Leases The Company has operating and finance leases for buildings and other assets such as vehicles and office equipment. The Company’s leases have remaining lease terms ranging from 1 year to 5 years. The tables below present financial information related to the Company’s leases. Supplemental balance sheets information related to leases as of December 31, 2022 and 2021 are as follows (in thousands): December 31, Leases Classification 2022 2021 Assets Operating lease Operating lease right-of-use $ 5,265 $ 4,275 Finance lease Property equipm 143 126 Total lease assets $ 5,408 $ 4,401 Liabilities Current Operating Operating lease liabilities $ 1,397 $ 2,323 Finance Other liabilitie 90 68 Non-current Operating Non-current operating lease liabilities 4,091 1,952 Finance Other non-current liabilitie 63 73 Total lease liabilities $ 5,641 $ 4,416 The following table presents the weighted average remaining lease term and discount rate: December 31, 2022 2021 Weighted average remaining lease term Operating leases 3.7 years 2.4 years Finance leases 2.4 years 2.0 years Weighted average discount rate Operating leases 6.6 % 4.2 % Finance leases 7.6 % 7.8 % The components of lease cost included in the Company’s consolidated statements of operations, are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease cost $ 2,261 $ 2,777 $ 1,885 Finance lease cost Amortization of right-of-use 68 65 63 Interest on lease liabilities 10 14 18 Total lease cost $ 2,339 $ 2,856 $ 1,966 The above table does not include an immaterial cost of short-term leases for the years ended December 31, 2022, 2021 and 2020. Other lease information is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,276 $ 2,777 $ 1,885 Operating cash flows from finance leases 10 14 18 Financing cash flows from finance leases 70 65 76 Non-cash right-of-use The aggregate future lease payments for operating and finance leases as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 1,707 $ 99 2024 1,594 28 2025 1,386 27 2026 958 14 2027 663 — Total future lease payments 6,308 168 Less: Imputed interest (820 ) (15 ) Present value of future payments $ 5,488 $ 153 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 9. Accrued Expenses Accrued expenses as of December 31, 2022 and 2021 are comprised of the following (in thousands): December 31, 2022 2021 Payroll, benefits and related taxes, excluding severance benefits $ 7,620 $ 9,548 Withholding tax attributable to intercompany interest income 43 1,950 Outside service fees 1,642 1,088 Merger-related costs — 7,035 Others 383 450 Accrued expenses $ 9,688 $ 20,071 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 10. 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 December 31, 2022 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement January 04, 2022 Zero cost collar $ 30,000 January 2023 to June 2023 March 07, 2022 Zero cost collar $ 24,000 July 2023 to December 2023 April 27, 2022 Zero cost collar $ 42,000 January 2023 to December 2023 Details of derivative contracts as of December 31, 2021 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement May 13, 2021 Zero cost collar $ 39,000 January 2022 to September 2022 August 13, 2021 Zero cost collar $ 48,000 January 2022 to December 2022 The zero cost collar contracts qualify as cash flow hedges under ASC 815, “Derivatives and Hedging,” since at both the inception of the contracts and on an ongoing basis, the hedging relationship was and is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the contracts. The fair values of the Company’s outstanding zero cost collar contracts recorded as liabilities as of December 31, 2022 and 2021 are as follows (in thousands): Derivatives designated as hedging instruments: December 31, 2022 2021 Liability Derivatives: Zero cost collars Other current liabilities $ 2,015 $ 2,020 Offsetting of derivative liabilities as of December 31, 2022 is as follows (in thousands): As of December 31, 2022 Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liability Derivatives: Zero cost collars $ 2,015 $ — $ 2,015 $ — $ (1,940 ) $ 75 Offsetting of derivative liabilities as of December 31, 2021 is as follows (in thousands): As of December 31, 2021 Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liability Derivatives: Zero cost collars $ 2,020 $ — $ 2,020 $ — $ (2,060 ) $ (40 ) For derivative instruments that are designated and qualify as cash flow hedges, gains or losses on the derivative aside from components excluded from the assessment of effectiveness are reported as a component of accumulated other comprehensive income or loss (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative, representing hedge components excluded from the assessment of effectiveness, are recognized in current earnings. The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the years ended December 31, 2022 and 2021. (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Loss Recognized in AOCI on Derivatives Location/Amount of Loss Reclassified from AOCI Into Statement of Operations Location/Amount of Gain Recognized in Statement of Operations on Derivatives 2022 2021 2022 2021 2022 2021 Zero cost collars $ (8,273 ) $ (4,665 ) Net sales $ (8,514 ) $ (819 ) Other income, net $ 135 $ 123 As of December 31, 2022, the amount expected to be reclassified from accumulated other comprehensive loss into loss within the next twelve months is $1,225 thousand. The Company set aside cash deposits to the counterparties, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) and Standard Chartered Bank Korea Limited (“SC”), as required for the zero cost collar contracts. These cash deposits are recorded as hedge collateral on the consolidated balance sheets. Cash deposits as of December 31, 2022 and 2021 are as follows (in thousands): December 31, Counterparty 2022 2021 SC $ 1,000 $ 1,000 Total $ 1,000 $ 1,000 The Company is required to deposit additional cash collateral with NFIK and SC for any exposure in excess of $500 thousand. As of December 31, 2022, $1,840 thousand and $100 thousand of additional cash collateral were required by NFIK and SC, respectively, and recorded as hedge collateral on the consolidated balance sheet. As of December 31, 2021, $760 thousand and $1,300 thousand of additional cash collateral were required by NFIK and SC, respectively, and recorded as hedge collateral on the consolidated balance sheet. These zero cost collar contracts may be terminated by the counterparties if the Company’s total cash and cash equivalents is less than $30,000 thousand at the end of a fiscal quarter, unless a waiver is obtained. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | 11. Borrowings 5.0% Exchangeable Senior Notes On January 17, 2017, MagnaChip Semiconductor S.A. closed the Exchangeable Notes Offering of $86,250 thousand aggregate principal amount of 5.0% Exchangeable Notes. Interest on the Exchangeable Notes accrued at a rate of 5.0% per annum, payable semi-annually on March 1 and September 1 of each year, beginning on March 1, 2017. The Exchangeable Notes matured on March 1, 2021, unless they were earlier repurchased or converted. Holders had the right to convert their notes at their option at any time prior to the close of business on the business day immediately preceding the stated maturity date. Interest expense related to the Exchangeable Notes for the years ended December 31, 2021 and 2020 were $958 thousand and $5,708 thousand, respectively. Prior to the March 1, 2021 maturity of the Exchangeable Notes, holders elected to exchange all outstanding Exchangeable Notes for an aggregate of 10,144,131 shares of the Company’s common stock in satisfaction in full of the outstanding obligations under the Exchangeable Notes. Upon exchange, the Company delivered for each $1,000 principal amount of exchanged Exchangeable Notes a number of shares equal to the exchange rate of 121.1387 shares of common stock per $1,000 principal amount of Exchangeable Notes, which was equivalent to an exchange price of approximately $8.26 per share of common stock. In connection with the exchanges, the fractional shares were paid in cash. Following March 1, 2021, the Company does not have any Exchangeable Notes outstanding. 6.625% Senior Notes On July 18, 2013, the Company issued a $225,000 thousand aggregate principal amount of the 2021 Notes at a price of 99.5%. Interest on the 2021 Notes accrued at a rate of 6.625% per annum, payable semi-annually on January 15 and July 15 The Company completed the full redemption of the remaining outstanding 2021 Notes on October 2, 2020. The Company paid approximately $227,428 thousand to fully redeem all of the outstanding $224,250 thousand aggregate principal amount of the 2021 Notes at a redemption price equal to the sum of 100% of the principal amount of the 2021 Notes, plus accrued and unpaid interest thereon through, but excluding, the Redemption Date. In connection with the redemption of the 2021 Notes, the Company recorded a $766 thousand as loss on early extinguishment of borrowings related to the remaining unamortized debt discount and debt issuance costs. |
Accrued Severance Benefits
Accrued Severance Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Accrued Severance Benefits | 12. Accrued Severance Benefits The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. Pursuant to 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 December 31, 2022, Changes in accrued severance benefits are as follows (in thousands): Year Ended December 31, 2022 2021 Beginning balance $ 51,567 $ 54,452 Provisions 6,289 8,282 Severance payments (6,012 ) (6,679 ) Translation adjustments (3,348 ) (4,488 ) 48,496 51,567 Less: Cumulative contributions to severance insurance deposit accounts (25,149 ) (18,250 ) The National Pension Fund (41 ) (53 ) Group severance insurance plan (185 ) (200 ) Accrued severance benefits, net $ 23,121 $ 33,064 The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance. Beginning in July 2018, the Company contributes to certain severance insurance deposit accounts a certain percentage of severance benefits that are accrued for eligible employees for their services from January 1, 2018 pursuant to Employee Retirement Benefit Security Act of Korea. These accounts consist of time deposits and other guaranteed principal and interest, and are maintained at insurance companies, banks or security companies for the benefit of employees. The Company deducts the contributions made to these severance insurance deposit accounts from its accrued severance benefits. The Company is liable to pay the following future benefits to its non-executive Severance Benefit 2023 $ 618 2024 862 2025 1,431 2026 1,782 2027 1,622 2028 – 2032 19,305 The above amounts were determined based on the non-executive non-executive Korea’s mandatory retirement age is 60 years of age or older under the Employment Promotion for the Aged Act. The Company sets the retirement age of employees at 60. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | 13. Stockholders’ Equity and Stock-Based Compensation Stock Repurchases On December 21, 2021, the Board of Directors authorized the Company to repurchase up to $75,000 thousand of the Company’s outstanding common stock and the Company entered into an accelerated stock repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank, National Association (“JPM”) to repurchase an aggregate of $37,500 thousand of the Company’s common stock. Pursuant to the terms of the ASR Agreement dated December 21, 2021, the Company paid to JPM $37,500 thousand in cash and received an initial delivery of 994,695 shares of its common stock in the open market for an aggregate purchase price of $20,073 thousand and a price per share of $20.18 on December 22, 2021. As of December 31, 2021, the Company accounted for the remaining portion of the ASR Agreement as a forward contract indexed to its own common stock and recorded $17,427 thousand in additional paid-in In March 2022, the previously announced repurchase of $37,500 thousand of the Company’s common stock was completed pursuant to the ASR Agreement, and as a result, the Company additionally received 1,031,576 $ paid-in On August 31, 2022, the Board of Directors has authorized an expansion of the Company’s previously announced stock repurchase program from $75,000 thousand to $87,500 thousand of the Company’s common stock. The remaining $50,000 thousand of the expanded $87,500 thousand program was planned to be repurchased in the open market or through privately negotiated transactions. In connection with the repurchase program, the Company has established a stock trading plan with Oppenheimer & Co. Inc. in accordance with Rule 10b5-1 Exchange Act of 1934, as amended. From September 2022 to December 2022, the Company repurchased 1,235,650 shares of its common stock in the open market for an aggregate purchase price of $12,511 thousand and a price per share of $10.13 under the stock repurchase program. Equity Incentive Plans The Company adopted its 2009 Common Unit Plan, or the 2009 Plan, effective December 8, 2009, which is administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). The 2009 Plan terminated in connection with the Company’s initial public offering in March 2011, and no additional options or other equity awards may be granted under the 2009 Plan. The Company adopted its 2011 Equity Incentive Plan, or the 2011 Plan, in March 2010. The Company amended and restated the 2011 Plan in February 2011, and the Company’s stockholders approved the amendment in March 2011 to reflect that it became effective in 2011 in connection with the Company’s initial public offering in March 2011. The 2011 Plan was amended on October 23, 2017, to revise the clawback policy of the 2011 Plan. The 2011 Plan was amended on April 26, 2018 to amend the tax withholding provisions as they relate to directed sales of shares. At the 2020 Annual Meeting of Stockholders, the Company’s stockholders approved its 2020 Equity and Incentive Compensation Plan, or the 2020 Plan, which is administered by the Compensation Committee. Following the adoption of the 2020 Plan, no further awards may be issued under the 2011 Plan. Awards may be granted under the 2020 Plan to the Company’s employees, officers, directors, or certain consultants or those of any subsidiary of the Company. While the Company may grant incentive stock options only to employees, the Company may grant non-statutory Stock options and stock appreciation rights must have exercise prices at least equal to the fair market value of the stock at the time of their grant pursuant to the 2011 Plan and 2020 Plan. Stock options typically vest over one to three years following grant, subject to the participant’s continued service through the applicable vesting dates. As of December 31, 2022, no stock options or stock appreciation rights had been granted under 2020 Plan. Restricted stock units granted under the 2011 Plan and 2020 Plan represent a right to receive shares of the Company’s common stock when the restricted stock unit vests. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares pursuant to a restricted stock unit, the consideration for which shall be services actually rendered to a participating company or for its benefit. Stock issued pursuant to any restricted stock unit may (but need not) be made subject to vesting conditions based upon the satisfaction of such service requirements, conditions, restrictions or performance criteria as shall be established by the Compensation Committee and set forth in the award agreement evidencing such award. Restricted stock units typically vest over one to three years following grant, subject to the participant’s continued service through the applicable vesting dates. Restricted stock constitutes an immediate transfer of the ownership of shares of the Company’s common stock to the participant in consideration of the performance of services, entitling such participant to voting, dividend and other ownership rights, subject to the substantial risk of forfeiture and restrictions on transfer determined by the Compensation Committee for a period of time determined by the Compensation Committee or until certain management objectives specified by the Compensation Committee are achieved. Each grant of restricted stock may be made without additional consideration or in consideration of a payment by the participant that is less than the fair market value per share of common stock on the grant date. Stock issued pursuant to any restricted stock award may (but need not) be made subject to vesting conditions based upon the satisfaction of such service requirements, conditions, restrictions or performance criteria as shall be established by the Compensation Committee and set forth in the award agreement evidencing such award. A grant of restricted stock may require that any and all dividends and distributions paid on restricted stock that remains subject to a substantial risk of forfeiture be automatically deferred and/or reinvested in additional restricted stock, which will be subject to the same restrictions as the underlying restricted stock, but any such dividends or other distributions on restricted stock must be deferred until, and paid contingent upon, the vesting of such restricted stock. The following summarizes restricted stock unit activities for the year ended December 31, 2022. Number of Weighted Outstanding at December 31, 2021 833,961 $ 14.33 Granted 726,000 17.41 Vested (374,803 ) 16.99 Forfeited (369,751 ) 17.61 Outstanding at December 31, 2022 815,407 $ 14.36 Total compensation expenses recorded for the restricted stock units were $6,037 thousand, $7,704 thousand and $6,311 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there was $4,036 thousand of total unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted average future period of 0.7 year. Total fair value of restricted stock units vested were $6,369 thousand, $5,788 thousand and $3,839 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. The following summarizes stock option activities for the year ended December 31, 2022. At the date of grant, all options had an exercise price not less than the fair value of common stock (aggregate intrinsic value in thousands): Number of Options Weighted Aggregate Weighted Outstanding at January 1, 2022 1,297,877 $ 10.78 $ 13,262 3.1 years Expired (7,993 ) 12.81 — — Exercised (152,326 ) 11.73 $ 1,187 — Outstanding at December 31, 2022 1,137,558 $ 10.64 $ 1,702 2.3 years Vested and Exercisable at December 31, 2022 1,137,558 $ 10.64 $ 1,702 2.3 years There were no compensation expenses recorded for the stock options for the years ended December 31, 2022, 2021 and 2020. |
Early termination and other cha
Early termination and other charges, net | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Early termination and other charges, net | 14. Early termination and other charges, net For the year ended December 31, 2022, the Company recorded in its consolidated statement of operations $2,821 thousand of one-time back-end For the year ended December 31, 2021, the Company recorded in its consolidated statement of operations $3,430 thousand of non-recurring back-end For the year ended December 31, 2020, the Company recorded in its consolidated statement of operations $4,422 thousand of early termination and other charges, net in connection with the headcount reduction program offered and paid to the employees during the fourth quarter of 2020. During the same period, the Company also recorded $554 thousand of non-recurring |
Foreign Currency Loss, Net
Foreign Currency Loss, Net | 12 Months Ended |
Dec. 31, 2022 | |
Foreign Currency [Abstract] | |
Foreign Currency Loss, Net | 15. Foreign Currency Loss, Net Net foreign currency gain or loss includes non-cash non-cash thousand, respectively. The Korean won to U.S. dollar exchange rates were 1,267.3:1, 1,185.5:1 and 1,088.0:1 using the first base rate as of December 31, 2022, 2021 and 2020, respectively, as quoted by the KEB Hana Bank. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The Company’s income tax expense (benefit) is composed of domestic and foreign income taxes depending on the relevant tax jurisdictions. Domestic income (loss) from continuing operations before income tax expense (benefit) and income tax expense (benefit) are generated or incurred in the U.S, where the parent company resides. The components of income tax expense (benefit) attributable to income (loss) from continuing operations are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Income (loss) from continuing operations before income tax expense (benefit) Domestic $ (1,955 ) $ 41,566 $ (12,305 ) Foreign (924 ) 32,403 23,136 (2,879 ) 73,969 10,831 Current income tax expense (benefit) Domestic 639 6,876 1 Foreign 4,297 9,415 (2,264 ) Uncertain tax position liability (foreign) (33 ) (35 ) (20 ) 4,903 16,256 (2,283 ) Deferred income tax expense (benefit) Domestic (1,264 ) 1,314 (4,461 ) Foreign 1,518 (309 ) (39,484 ) 254 1,005 (43,945 ) Total income tax expense (benefit) $ 5,157 $ 17,261 $ (46,228 ) The provision for domestic and foreign income taxes (benefit) incurred is different from the amount calculated by applying the statutory tax rates to the income (loss) from continuing operations before income tax expense (benefit). The significant items causing this difference are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Provision computed at statutory rates $ (605 ) $ 15,533 $ 2,274 State income taxes, net of federal effect — — 730 Change in statutory tax rates 2,006 (259 ) 5,735 Difference in foreign tax rates 302 2,820 1,077 Permanent differences Derivative assets adjustment (62 ) (23 ) 56 TPECs, hybrid and other interest (2,096 ) (3,400 ) (2,722 ) Thin capitalization — — 339 Equity-based compensation (241 ) (802 ) (73 ) Permanent foreign currency gain (loss) 1,676 1,888 (1,813 ) Penalty 75 427 176 GILTI 8,187 6,156 24,224 Intercompany debt restructuring 8,061 971 11,137 Other permanent differences 72 (767 ) 1,335 Withholding tax (2,031 ) 2,060 2,291 State net operating loss write off — 9,844 — Change in valuation allowance (4,582 ) (13,803 ) (75,452 ) Tax credits claimed (5,658 ) (5,508 ) (12,397 ) Uncertain tax positions liability (33 ) (35 ) (20 ) Change in net operating loss carry-forwards (145 ) 621 (3,314 ) Foreign local taxes 919 723 43 Others (688 ) 815 146 Income tax expense (benefit) $ 5,157 $ 17,261 $ (46,228 ) For the year ended December 31, 2022, a permanent difference of $8,187 low-taxed The income tax benefit of $4,582 thousand was due to the changes in valuation allowances during the year ended December 31, 2022, of which $2,670 thousand related to the release of valuation allowances related to the U.S parent company’s current year earnings, which was mainly driven by GILTI inclusion. The remaining $1,912 thousand represented the release of valuation allowances based on the realizability of the related deferred tax assets in future years. Of the income tax benefit of $13,803 thousand attributable to the change in valuation allowances during the year ended December 31, 2021, $9,844 thousand related to the release of the valuation allowance established against the deferred tax assets associated in the U.S. entity due to the dissolution of the Company’s domestic subsidiary write-off For the year ended December 31, 2020, a permanent difference of $24,224 thousand was included as GILTI in the U.S., and was primarily attributable to the income earned by certain foreign subsidiaries of the Company, including its Korean subsidiary, from the sale of the Foundry Services Group business and Fab 4. The income tax benefit of $75,452 thousand was due to the changes in valuation allowances during the year ended December 31, 2020, of which $31,578 thousand related to the release of valuation allowances related to the Company’s current year earnings, which were mainly driven by GILTI inclusion at the U.S. parent company. The remaining $43,874 thousand represented the release of valuation allowances based on the realizability of the related deferred tax assets in future years. The Company’s operating subsidiary in Korea had generated three years of cumulative profits adjusted for permanent differences and anticipated to generate taxable basis for the subsequent years. As a result, $39,413 thousand of valuation allowances, established against the Korean subsidiary’s deferred tax assets, were released as of December 31, 2020. Of the permanent tax expense of $11,137 thousand related to intercompany debt restructuring recorded for the year ended December 31, 2020, $11,890 thousand related to the waiver and release of unpaid interests of the intercompany loans granted to the Korean subsidiary by the Dutch subsidiary. This transaction created taxable income for the Korean subsidiary, but did not result in a liability because of the utilization of loss carryforwards, which were used against income from cancellation of intercompany loans. A summary of the composition of net deferred income tax assets (liabilities) as of December 31, 2022 and 2021 are as follows (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets Inventory reserves $ 3,108 $ 1,313 Accrued expenses 1,668 3,084 Property, plant and equipment 2,685 3,119 Accumulated severance benefits 10,269 11,842 Operating lease right-of-use 1,098 899 Foreign currency translation loss 22,272 17,280 NOL carry-forwards 78,698 87,636 Tax credit carry-forwards 13,337 14,164 Other long-term payable 4,005 2,457 Interest expense deduction limitation 91 4,731 Derivative liabilities 427 463 Others 1,394 1,610 Total deferred tax assets 139,052 148,598 Less: Valuation allowance (84,563 ) (94,212 ) 54,489 54,386 Deferred tax liabilities Prepaid expense 3,065 2,300 Severance benefit deposits 5,364 4,227 Operating lease right-of-use 1,051 899 Foreign currency translation gain 5,621 5,139 Others 1,064 726 Total deferred tax liabilities 16,165 13,291 Net deferred tax assets $ 38,324 $ 41,095 The Company has not recognized a deferred tax liability related to outside basis differences inherent in its foreign subsidiaries because the investments in those foreign subsidiaries within the group are essentially permanent in duration or earnings in foreign subsidiaries are intended to be indefinitely reinvested. It is not practicable to estimate the amount of deferred income taxes not recorded that are associated with those outside basis differences. If circumstances change and it becomes apparent that the undistributed earnings from foreign subsidiaries will be remitted or the parent entity will dispose of its interest in the subsidiaries in the foreseeable future, and related income taxes have not been recognized by the parent entity, the parent entity will accrue as an expense of the current period income taxes attributable to that remittance or disposition. Changes in valuation allowance for deferred tax assets of continuing operations and discontinued operations for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ 94,212 $ 115,636 $ 246,224 Reductions (4,582 ) (13,803 ) (75,452 ) Changes relating to the discontinued operations — — (67,484 ) NOL/tax credit claimed/expired — — 3,686 Translation adjustments (5,067 ) (7,621 ) 8,662 Ending balance $ 84,563 $ 94,212 $ 115,636 As of December 31, 2022, 2021 and 2020, respectively, the Company recorded a valuation allowance of $84,563 thousand, $94,212 thousand and $115,636 thousand on its deferred tax assets related to temporary differences, net operating loss carry-forwards and tax credits of domestic and foreign subsidiaries. The Company has recorded a full valuation allowance against certain foreign subsidiaries’ deferred tax assets pertaining to its related tax loss carry-forwards that are not anticipated to generate a tax benefit. The valuation allowances at December 31, 2022, 2021 and 2020 were primarily attributable to its Luxembourg subsidiary. The net operating loss carry-forwards balance as of December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 NOL carry-forwards $ 324,134 $ 502,511 $ 604,977 As of December 31, 2022, the Company had $324,134 thousand of net operating loss carry-forwards available to offset future taxable income, of which $271,753 thousand is associated with the Company’s Luxembourg subsidiary, mainly attributable to certain expenses incurred in connection with its shareholding in the Company’s Dutch subsidiary. Of the $271,753 thousand net operating loss carry-forwards, $263,506 thousand is carried forward indefinitely and the remaining $8,247 thousand expires from 2034 through 2039. The net operating loss carry-forwards retained by the Company’s U.S. parent amounts to $50,522 thousand, which expires at various dates through 20 37 The Company utilized net operating loss of $19,900 thousand, $70,672 thousand and $169,600 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. The Company also has Dutch tax credit carry-forwards of $13,337 thousand as of December 31, 2022. The Dutch tax credits are carried forward to be used for an indefinite period of time. Uncertainty in Income Taxes The Company and its subsidiaries file income tax returns in Korea, Japan, Taiwan, and the U.S and in various other jurisdictions. The Company is subject to income- or non-income tax years. As of December 31, 2022, 2021 and 2020, the Company recorded $316 thousand, $386 thousand and $414 thousand of unrecognized tax benefits, respectively. A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of each period is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Unrecognized tax benefits, balance at the beginning $ 386 $ 414 $ 445 Additions based on tax positions related to the current year 40 44 48 Reductions for tax positions of prior years — — (34 ) Lapse of statute of limitations (73 ) (79 ) (76 ) Translation adjustments (37 ) 7 31 Unrecognized tax benefits, balance at the ending $ 316 $ 386 $ 414 No interest and penalties related to unrecognized tax benefits were recognized as of December 31, 2022, 2021 and 2020. The Company is currently unaware of any uncertain tax positions that could result in significant additional payments, accruals, or other material deviations from this estimate over the next 12 months. The IRA On August 16, 2022, the IRA was signed into law, which imposes a 15% alternative minimum tax on the adjusted financial statement income of large corporations with average annual financial income exceeding $1 billion and a 1% excise tax on net stock repurchases by publicly traded U.S. corporations for tax years beginning after December 31, 2022. The IRA did not have any impact on the Company’s income tax for the year ended December 31, 2022 and the Company will continue to evaluate the impact this might have in future periods. |
Geographic and Other Informatio
Geographic and Other Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Geographic and Other Information | 17. Geographic and Other Information The following sets forth information relating to the single continuing operating segment (in thousands): Year Ended December 31, 2022 2021 2020 Revenues Standard products business Display Solutions $ 71,432 $ 205,322 $ 299,057 Power Solutions 230,464 227,777 166,462 Total standard products business 301,896 433,099 465,519 Transitional Fab 3 foundry services 35,762 41,131 41,540 Total revenues $ 337,658 $ 474,230 $ 507,059 Year Ended December 31, 2022 2021 2020 Gross Profit Standard products business $ 99,549 $ 149,596 $ 127,099 Transitional Fab 3 foundry services 1,715 3,947 1,218 Total gross profit $ 101,264 $ 153,543 $ 128,317 The following is a summary of net sales—standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands): Year Ended December 31, 2022 2021 2020 Korea $ 105,285 $ 113,776 $ 106,415 Asia Pacific (other than Korea) 179,555 306,333 347,597 United States 10,369 6,052 5,147 Europe 6,687 5,698 4,317 Others — 1,240 2,043 Total $ 301,896 $ 433,099 $ 465,519 For the years ended December 31, 2022, 2021 and 2020, of the Company’s net sales—standard products business in Asia Pacific (other than Korea), net sales—standard products business in Greater China (China and Hong Kong) represented 68.5%, 65.8% and 82.0%, respectively, and net sales—standard products business in Vietnam represented 13.6%, 26.4% and 14.4%, respectively. Net sales from the Company’s top ten largest customers in the standard products business (which does not include the Transitional Fab 3 Foundry Services) accounted for 69%, 80% and 88% for the years ended December 31, 2022, 2021 and 2020, respectively. For the year ended December 31, 2022, the Company had two customers that represented 19.0% and 13.8% of its net sales—standard products business, and for the year ended December 31, 2021, the Company had two customers that represented 42.5% and 10.4% of its net sales—standard products business, and for the year ended December 31, 2020, the Company had one customer that represented 56.2% of its net sales—standard products business. As of December 31, 2022, two customers of the Company’s standard products business accounted for 25.1% and 15.2% of its accounts receivable – standard products business (which does not include the Transitional Fab 3 Foundry Services), respectively. As of December 31, 2021, two customers of the Company’s standard products business accounted for 30.3% and 15.5% of its accounts receivable – standard products business (which does not include the Transitional Fab 3 Foundry Services), respectively. 99% of the Company’s property, plant and equipment are located in Korea as of December 31, 2022. |
Merger Agreement
Merger Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Merger Agreement | 18. Merger Agreement On March 25, 2021, the Company, South Dearborn Limited, an exempted company incorporated in the Cayman Islands with limited liability (“Holdco”), formed by an affiliate of Wise Road Capital LTD (“Wise Road”), and Michigan Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Holdco (“Merger Sub”), entered into an Agreement and Plan of Merger (as amended, the “Merger Agreement”), providing for, among other things and subject to the terms and conditions thereof, the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Holdco. The closing of the Merger was subject to certain conditions, including clearance by the Committee on Foreign Investment in the United States (“CFIUS”) under the Defense Production Act of 1950, as amended. The Company and Holdco were advised that CFIUS clearance of the Merger would not be forthcoming and received permission from CFIUS to withdraw their joint filing. In connection therewith, the Company and Holdco entered into a Termination and Settlement Agreement, dated December 13, 2021 (the “Termination Agreement”), pursuant to which Holdco agreed to pay $70,200 thousand (the “Termination Fee”) to the Company on the terms specified in the Termination Agreement in satisfaction of Holdco’s obligation to pay a termination fee in connection with the termination of the Merger Agreement. On December 20, 2021, the Merger Agreement was terminated pursuant to the Termination Agreement after the Company’s receipt of a fee of $51,000 thousand from Holdco and a standby letter of credit, which secures a deferred fee of $19,200 thousand from Holdco due on or before March 31, 2022. As of December 31, 2021, of the Termination Fee, $19,200 thousand deferred fee was recorded as other receivables. In connection therewith, the Company, Holdco and Wise Road entered into a First Amendment to the Termination Agreement, dated April 4, 2022, pursuant to which Holdco paid $14,400 thousand on April 4, 2022, with $4,800 thousand remaining outstanding. The Company, Holdco and Wise Road entered into a Second Amendment to the Termination Agreement, dated August 5, 2022 pursuant to which Holdco paid $3,000 thousand on August 5, 2022, of the deferred fee and payment of the remaining $1,800 thousand was due on or before October 31, 2022. The Company, Holdco and Wise Road entered into a Letter Agreement, dated October 28, 2022 pursuant to which the parties agreed to defer the remaining $1,800 thousand due on or before December 23, 2022. The Company, Holdco and Wise Road entered into an additional Letter Agreement, dated January 31, 2023 pursuant to which the parties agreed to defer the remaining $1,800 thousand due on or before February 28, 2023. As of December 31, 2022, the remaining fee of $1,800 thousand was recorded as other receivables. Other than in respect of this receivable, the Company has no further relationship with Holdco. For the years ended December 31, 2021 and 2020, the Company incurred $34,673 thousand and $653 thousand, respectively, of professional fees and certain transaction related-expenses incurred in connection with the Merger, which were recognized in merger-related costs, net in the consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies COVID-19 In December 2019, a strain of coronavirus causing a disease known as COVID-19 COVID-19 shelter-in-place COVID-19 re-imposition re-implemented COVID-19. The Company experienced some minor disruption in its Power Solutions business from assembly and test subcontractors located in China in the first quarter of 2020 as a result of the COVID-19 sub-contractors COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 The Company continues to closely monitor and evaluate the nature and scope of the impact of the COVID-19 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 20. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following at December 31, 2022 and 2021, respectively (in thousands): Year Ended December 31, 2022 2021 Foreign currency translation adjustments $ (11,328 ) $ (770 ) Derivative adjustments (1,225 ) (1,460 ) Total $ (12,553 ) $ (2,230 ) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (770 ) $ (1,460 ) $ (2,230 ) Other comprehensive loss before reclassifications (10,558 ) (8,279 ) (18,837 ) Amounts reclassified from accumulated other comprehensive loss — 8,514 8,514 Net current-period other comprehensive income (loss) (10,558 ) 235 (10,323 ) Ending balance $ (11,328 ) $ (1,225 ) $ (12,553 ) Year Ended December 31, 2021 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ 2,069 $ 1,634 $ 3,703 Other comprehensive loss before reclassifications (2,839 ) (3,913 ) (6,752 ) Amounts reclassified from accumulated other comprehensive loss — 819 819 Net current-period other comprehensive loss (2,839 ) (3,094 ) (5,933 ) Ending balance $ (770 ) $ (1,460 ) $ (2,230 ) Year Ended December 31, 2020 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (4,205 ) $ 1,545 $ (2,660 ) Other comprehensive income before reclassifications 6,274 1,452 7,726 Amounts reclassified from accumulated other comprehensive income — (1,363 ) (1,363 ) Net current-period other comprehensive income 6,274 89 6,363 Ending balance $ 2,069 $ 1,634 $ 3,703 There was an income tax expense of $ 6 752 o 316 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 21. Earnings (Loss) Per Share The following table illustrates the computation of basic and diluted earnings (loss) per common share for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands of U.S. dollars, except share data) Basic earnings (loss) per share Income (loss) from continuing operations $ (8,036 ) $ 56,708 $ 57,059 Income from discontinued operations, net of tax — — 287,906 Net income (loss) $ (8,036 ) $ 56,708 $ 344,965 Basic weighted average common stock outstanding 44,850,791 44,879,412 35,213,525 Basic earnings (loss) per common share Continuing operations $ (0.18 ) $ 1.26 $ 1.62 Discontinued operations — — 8.18 Total $ (0.18 ) $ 1.26 $ 9.80 Diluted earnings (loss) per share Income (loss) from continuing operations $ (8,036 ) $ 56,708 $ 57,059 Add back: Interest expense on Exchangeable Notes — 959 5,708 Income (loss) from continuing operations allocated to common stockholders $ (8,036 ) $ 57,667 $ 62,767 Income from discontinued operations, net of tax — — 287,906 Net income (loss) allocated to common stockholders $ (8,036 ) $ 57,667 $ 350,673 Basic weighted average common stock outstanding 44,850,791 44,879,412 35,213,525 Net effect of dilutive equity awards — 1,403,789 1,145,906 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock — 1,426,172 10,144,155 Diluted weighted average common stock outstanding 44,850,791 47,709,373 46,503,586 Diluted earnings (loss) per common share Continuing operations $ (0.18 ) $ 1.21 $ 1.35 Discontinued operations — — 6.19 Total $ (0.18 ) $ 1.21 $ 7.54 Diluted earnings (loss) per share adjusts basic earnings (loss) per share for the potentially dilutive impact of stock options. As the Company has reported loss for the year ended December 31, 2022, all potentially dilutive securities, including stock options, are antidilutive and accordingly not considered, therefore basic net loss per share equals diluted net loss per share. The following outstanding instruments were excluded from the computation of diluted earnings (loss) per share, as they have an anti-dilutive effect on the calculation: Year Ended December 31, 2022 2021 2020 Options 1,137,558 50,000 651,417 Restricted Stock Units 815,407 — — Rights Plan The Company entered into a Rights Agreement, dated as of December 13, 2021, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (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 December 23, 2021. Each Right, once exercisable, will entitle the registered holder to purchase from the Company one one-thousandth A-1 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, as amended) 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 (and not including) 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 could redeem all of the Rights for |
Business, Basis of Presentati_2
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business | Business Magnachip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, computing, industrial and automotive applications. On September 1, 2020 (the “Closing Date”), the Company completed the sale of the Company’s Foundry Services Group business and its fabrication facility located in Cheongju, Korea, known as “Fab 4” to Key Foundry Co., Ltd. (the “Buyer”), a Korean corporation, in exchange for a purchase price equal to approximately $350.6 million in cash, pursuant to the terms of a business transfer agreement (the “Business Transfer Agreement”) dated March 31, 2020 by and among the Company and Magnus Semiconductor, LLC, a Korean limited liability company (“Magnus”). The purchase price was paid in a combination of U.S. Dollars in the amount of $46.5 million and Korean Won in the amount of approximately KRW 360.6 billion. In addition to the purchase price, the Buyer assumed all severance liabilities relating to the transferred employees, which had a value of approximately $100 million. The Buyer is a wholly owned subsidiary of Magnus, which was established by Alchemist Capital Partners Korea Co., Ltd. and Credian Partners, Inc. On April 20, 2020, Magnus assigned, and the Buyer assumed, all rights and obligations of Magnus under the Business Transfer Agreement. This divestiture of the Foundry Services Group business and Fab 4 was made in connection with the Company’s strategic shift of its operational focus to its standard products business. The Foundry Services Group was historically a reportable segment. The Foundry Services Group business was classified as discontinued operations in the Company’s consolidated statements of operations and excluded from both continuing operations and segment results for the 2020 fiscal year. Accordingly, the Company has one reportable segment, its standard products business, together with transitional foundry services associated with its fabrication facility located in Gumi, Korea, known as “Fab 3,” that it expects to perform for the Buyer for a period of up to three years from the Closing Date (the “Transitional Fab 3 Foundry Services”). The Company’s standard products business includes its Display Solutions and Power Solutions business lines. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and a wide range of applications including smartphones, TVs, automotive and IT applications such as monitors, notebook PCs, tablet PCs as well as AR/VRs. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer, computing, servers, automotive, and industrial applications. |
Basis of Presentation | Basis of Presentation The consolidated financial statements are presented in accordance with U.S. GAAP. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. The consolidated statement of cash flows for the 2020 fiscal year has not been adjusted to separately disclose cash flows related to discontinued operations, but the material items in the operating and investing activities of the cash flow relating to discontinued operations for the same period are disclosed in Note 2. Unless otherwise stated, information in these notes to consolidated financial statements relates to the Company’s continuing operations and excludes the discontinued operations. See Note 2 “Discontinued Operations” for additional information. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company including its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, stock-based compensation, property, plant and equipment, leases, other long-lived assets, long-term employee benefits, contingencies liabilities, estimated future cash flows and other assumptions used in long-lived asset impairment tests, and calculation of current and deferred income taxes and deferred tax valuation allowances, among others. Although these estimates and assumptions are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be significantly different from the estimates. The Company assessed the impact of COVID-19 COVID-19 COVID-19 |
Discontinued Operations | Discontinued Operations The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standards Codification (“ASC”) 205, “Presentation of Financial Statements” (“ASC 205”) and ASC 360, “Property, Plant and Equipment” (“ASC 360”). The results of discontinued operations are reported in “Income from discontinued operations, net of tax” in the accompanying consolidated statements of operations for the year ended December 31, 2020 commencing in the period in which the business meets the criteria. |
Foreign Currency Translation | Foreign Currency Translation The Company has assessed in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), the functional currency of each of its subsidiaries in Luxembourg and the Netherlands and has designated the U.S. dollar to be their respective functional currencies. The Korean Won is the functional currency for the Company’s Korean subsidiary, which is the primary operating subsidiary of the Company. The Company and its other subsidiaries are utilizing their local currencies as their functional currencies. The financial statements of the subsidiaries in functional currencies other than the U.S. dollar are translated into the U.S. dollar in accordance with ASC 830. All the assets and liabilities are translated to the U.S. dollar at the end-of-period |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity date of three months or less when purchased. |
Accounts Receivable Reserves | Accounts Receivable Reserves The Company makes estimates of expected credit losses for the allowance for credit losses based upon its assessment of various factors, including historical collection experience, the age of the accounts receivable balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The Company also records an estimate for sales returns, included within accounts receivable, net, based on the historical experience of the amount of goods that will be returned and refunded or replaced. |
Sales of Accounts Receivable | Sales of Accounts Receivable The Company accounts for transfers of financial assets under ASC 860, “Transfers and Servicing,” as either sales or financings. Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. If the transfer does not meet these criteria, the transfer is accounted for as a financing. Financial assets that are treated as sales are removed from the Company’s accounts with any realized gain or loss reflected in earning during the period of sale. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, using the first in, first out method (“FIFO”). If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable value, and the difference is recognized as a loss on valuation of inventories within cost of sales. Inventory reserves are established when conditions indicate that the net realizable value is less than costs due to physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. The Company evaluates the sufficiency of inventory reserves and takes into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product age and other factors. Reserves are also established for excess inventory based on the Company’s current inventory levels and projected demand and its ability to sell those specific products. Situations that could cause these inventory reserves include a decline in business and economic conditions, decline in consumer confidence caused by changes in market conditions, sudden and significant decline in demand for the Company’s products, inventory obsolescence because of rapidly changing technology and consumer requirements, or failure to estimate end customer demand properly. A reduction of these inventory reserves may be recorded if previously reserved items are subsequently sold as a result of unexpected changes to certain aforementioned situations. In addition, as prescribed in ASC 330, “Inventory,” once a reserve is established for a particular item based on the Company’s assessment as described above, it is maintained until the related item is sold or scrapped as a new cost basis has been established that cannot subsequently be marked up. In addition, the cost of inventories is determined based on the normal capacity of the Company’s fabrication facility. In case the capacity utilization is lower than a certain level that management believes to be normal, the fixed overhead costs per production unit which exceeds those under normal capacity are charged to cost of sales rather than capitalized as inventories. |
Advances to Suppliers | Advances to Suppliers The Company, from time to time, may make advances in form of prepayments or deposits to suppliers, including external foundries, to meet its planned production. The Company recorded advances of $6,605 thousand and $1,708 thousand as other current assets as of December 31, 2022 and 2021, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. Buildings 30 - 40 years Building related structures 10 - 20 years Machinery and equipment 10 - 12 years Others 3 - 10 years Routine maintenance and repairs are charged to expense as incurred. Expenditures that enhance the value or significantly extend the useful lives of the related assets are capitalized. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews property, plant and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, “Property, Plant and Equipment.” Recoverability is measured by comparing its carrying amount with the future net undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured as the difference between the carrying amount of the assets and the fair value of assets using the present value of the future net cash flows generated by the respective long-lived assets. |
Leases | Leases The Company determines if an arrangement is a lease at inception of a contract considering whether the arrangement conveys the right to control the use of an identified asset over the period of use. Control of an underlying asset is conveyed if the Company has the right to direct the use of, and to obtain substantially all of the economic benefits from the use of, the identified asset. The Company accounts for lease transactions as either an operating or a finance lease, depending on the terms of the underlying lease arrangement. Assets related to operating leases are recorded on the balance sheet as operating lease right-of-use non-current non-current right-of-use non-current Right-of-use Right-of-use right-of-use recorded using the interest method. The amortization and interest expense are recorded separately in the consolidated statements of operations. Amortization of operating lease right-of-use An extension or contraction of a lease term is considered if the related option to extend or early terminate the lease is reasonably certain to be exercised by the Company. Operating lease right-of-use non-lease non-lease Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates are not included in the right-of-use The Company does not recognize operating lease right-of-use |
Intangible Assets | Intangible Assets Intellectual property assets acquired represent rights under patents, trademarks and property use rights and are amortized over their respective periods of benefit, ranging up to ten years, on a straight-line basis. |
Fair Value Disclosures of Financial Instruments | Fair Value Disclosures of Financial Instruments The Company follows ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by ASC 820 are: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, such as cash equivalents, accounts receivable, other receivables, accounts payable and other accounts payable approximate their fair values because of the short maturity of these instruments. |
Accrued Severance Benefits | Accrued Severance Benefits The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary, Magnachip Semiconductor, Ltd. Pursuant to 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 December 31, 2022, 97% of all employees of the Company were eligible for severance benefits. Beginning in July 2018, the Company began contributing to certain severance insurance deposit accounts a percentage of severance benefits, which may be adjusted from time to time, accrued for eligible employees for their services beginning January 1, 2018 pursuant to Employee Retirement Benefit Security Act of Korea. These accounts consist of time deposits and other guaranteed principal and interest accounts, and are maintained at insurance companies, banks or security companies for the benefit of the Company’s employees. Accrued severance benefits were partly funded through a group severance insurance plan. The amounts funded under this insurance plan were classified as a reduction of the accrued severance benefits. In accordance with the National Pension Act of the Republic of Korea, a certain portion of accrued severance benefits was deposited with the National Pension Fund and deducted from the accrued severance benefits. The contributed amount is paid to employees from the National Pension Fund upon their retirement. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it satisfies the performance obligation of transferring control over a product or service to a customer. Revenue is measured based on the consideration specified in a contract with a customer, which consideration is paid in exchange for a product or service. The Company sells products manufactured based on the Company’s design. The Company’s products are either standardized with an alternative use or the Company does not have an enforceable right to payment for the related manufacturing services completed to date. Therefore, revenue for the products is recognized when a customer obtains control of the product, which is generally upon product shipment, delivery at the customer’s location or upon customer acceptance, depending on the terms of the arrangement. In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction, and that is collected by the Company from a customer, is excluded from revenue and related revenue is presented in the statements of operations on a net basis. The Company provides warranties under which customers can return defective products. The Company estimates the costs related to warranty claims and repair or replacements, and records them as components of cost of sales. In addition, the Company offers sales returns (other than those that relate to defective products under warranty), cash discounts for early payments and sales incentives, and certain allowances to the Company’s customers, including the Company’s distributors. The Company records reserves for those returns, discounts, incentives and allowances as a deduction from sales, based on historical experience and other quantitative and qualitative factors. Substantially all of the Company’s contracts are one year or less in duration. The standard payment terms with customers are generally thirty to sixty days from the time of shipment, product delivery to the customer’s location or customer acceptance, depending on the terms of the related arrangement. All amounts billed to a customer related to shipping and handling are classified as sales while all costs incurred by the Company for shipping and handling are classified as selling, general and administrative expenses. The amounts charged to selling, general and administrative expenses were $1,060 thousand, $1,271 thousand and $993 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. Of the recorded deferred revenue of $2,383 thousand as of December 31, 2021 and $2,680 thousand as of December 31, 2020, $2,383 thousand and $2,680 thousand were recognized as revenue during the years ended December 31, 2022 and 2021, respectively. |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising expenses were $46 thousand, $71 thousand and $87 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. |
Product Warranties | Product Warranties The Company records, in other current liabilities, warranty liabilities for the estimated costs that may be incurred under its basic limited warranty. The standard limited warranty period is one to two years for the majority of products. This warranty covers defective products, and related liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liabilities include historical and anticipated rates of warranty claims and repair or replacement costs per claim to satisfy the Company’s warranty obligation. The Company periodically assesses the adequacy of those recorded warranty liabilities and adjusts its estimates when necessary. |
Derivative Financial Instruments | Derivative Financial Instruments The Company applies the provisions of ASC 815, “Derivatives and Hedging” (“ASC 815”). This statement requires the recognition of all derivative instruments as either assets or liabilities measured at fair value. Under the provisions of ASC 815, the Company may designate a derivative instrument as hedging the exposure to variability in expected future cash flows that are attributable to a particular risk (a “cash flow hedge”) or hedging the exposure to changes in the fair value of an asset or a liability (a “fair value hedge”). Special accounting for qualifying hedges allows the effective portion of a derivative instrument’s gains and losses to offset related results on the hedged item in the consolidated statements of operations and requires that a company formally document, designate and assess the effectiveness of the transactions that receive hedge accounting treatment. Both at the inception of a hedge and on an ongoing basis, a hedge must be expected to be highly effective in achieving offsetting changes in cash flows or fair value attributable to the underlying risk being hedged. If the Company determines that a derivative instrument is no longer highly effective as a hedge, it discontinues hedge accounting prospectively and future changes in the fair value of the derivative are recognized in current earnings. The Company assesses hedge effectiveness at the end of each quarter. The Company does not offset derivative assets and liabilities within the consolidated balance sheets. In accordance with ASC 815, changes in the fair value of derivative instruments that are cash flow hedges are recognized in accumulated other comprehensive income or loss and reclassified into earnings in the period in which the hedged item affects earnings. Derivative instruments that do not qualify, or cease to qualify, as hedges must be adjusted to fair value and the adjustments are recorded through net income or loss. The cash flows from derivative instruments receiving hedge accounting treatment are classified in the same categories as the hedged items in the consolidated statements of cash flows. |
Research and Development | Research and Development Research and development expenses are expensed as incurred and include wafers, masks, employee expenses, contractor fees, building costs, utilities and administrative expenses. |
Licensed Patents and Technologies | Licensed Patents and Technologies The Company has entered into a number of royalty agreements to license patents and technology used in the design of its products. The Company carries two types of royalties: lump-sum Lump-sum non-refundable Running royalties are paid based on the revenue of related products sold by the Company. |
Stock-Based Compensation | Stock-Based Compensation The Company follows the provisions of ASC 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense, net of the estimated forfeiture rate, over the requisite service period. As permitted under ASC 718, the Company elected to recognize compensation expense for all options with graded vesting based on the graded attribution method. The Company uses the Black-Scholes option-pricing model to measure the grant-date-fair-value of options. The Black-Scholes model requires certain assumptions to determine an option’s fair value, including expected term, risk free interest rate and expected volatility. The expected term of each option grant was based on employees’ expected exercises and post-vesting employment termination behavior and the risk free interest rate was based on the U.S. Treasury yield curve for the period corresponding with the expected term at the time of grant. No dividends were assumed for this calculation of option value. |
Earnings (Loss) per Share | Earnings (Loss) Per Share In accordance with ASC 260, “Earnings Per Share”, the Company computes basic earnings per share by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution of potential common stock outstanding during the period including stock options and restricted stock units, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options and restricted stock units), and convertibles, using the if-converted |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in a company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. Valuation allowances are established when it is necessary to reduce deferred tax assets to the amount expected to be realized. The evaluation of the recoverability of the deferred tax assets and the need for a valuation allowance requires management to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including historical operating results, expected timing of the reversals of existing temporary differences, the Company’s ability to generate future taxable income, and tax planning strategies. The Company recognizes and measures uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step |
Concentration of Credit Risk | Concentration of Credit Risk The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral for customers on accounts receivable. The Company maintains reserves for potential credit losses, which are periodically reviewed. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, 470-20) 815-40)” 2020-06”), 2020-06 2020-06 In May 2021, the FASB issued ASU No. 2021-04, 470-50)”, 815-40): 2021-04”), 2021-04 2021-04 2021-04 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Estimated Useful Lives of Assets | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. Buildings 30 - 40 years Building related structures 10 - 20 years Machinery and equipment 10 - 12 years Others 3 - 10 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Assets Held for Sale [Abstract] | |
Schedule Of Results From Discontinued Operations | The following table summarizes the results from discontinued operations, net of tax, for the year ended December 31, 2020. Year Ended (In thousands of U.S. dollars) Revenues: Net sales—Foundry Services Group $ 254,732 Net sales—transitional Fab 3 foundry services (25,887 ) Total revenues 228,845 Cost of sales: Cost of sales—Foundry Services Group 182,872 Cost of sales—transitional Fab 3 foundry services (25,887 ) Total cost of sales 156,985 Gross profit 71,860 Operating expenses: Selling, general and administrative expenses 14,797 Research and development expenses 19,484 Restructuring and other charges 15,873 Total operating expenses 50,154 Operating income from discontinued operations 21,706 Foreign currency gain, net 1,277 Others, net 72 Income from discontinued operations before income tax expense 23,055 Income tax expense 11,452 Gain on sale of discontinued operations 287,117 Transaction costs (10,814 ) Income from discontinued operations, net of tax 287,906 |
Schedule Of Results From Discontinued Operations Alternative Cash Flow Information | The following table provides supplemental cash flows information related to discontinued operations: Year Ended (In thousands of U.S. dollars) Significant non-cash Depreciation and amortization $ 5,365 Provision for severance benefits 8,209 Stock-based compensation 388 Investing activities: Capital expenditures $ (5,838 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | As of December 31, 2022, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value December 31, 2022 Fair Value Measurement December 31, 2022 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilitie $ 2,015 $ 2,015 — $ 2,015 — As of December 31, 2021, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value December 31, 2021 Fair Value Measurement December 31, 2021 Quoted Prices in Active Markets for Identical Liability (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilitie $ 2,020 $ 2,020 — $ 2,020 — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Accounts Receivable | Accounts receivable as of December 31, 2022 and 2021 consisted of the following (in thousands): December 31, 2022 2021 Accounts receivable $ 35,610 $ 50,363 Notes receivable 32 1,242 Less: Allowance for credit losses (79 ) (466 ) Sales return reserves (183 ) (185 ) Accounts receivable, net $ 35,380 $ 50,954 |
Allowance for Doubtful Accounts [Member] | |
Schedule of Changes in Receivables and Reserves | Changes in allowance for credit losses for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (466 ) $ (188 ) $ (49 ) Provision — (302 ) (131 ) Write off 378 — — Translation adjustments 9 24 (8 ) Ending balance $ (79 ) $ (466 ) $ (188 ) |
Sales Return Reserve [Member] | |
Schedule Of Changes in Volume | Changes in sales return reserves for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (185 ) $ (173 ) $ (387 ) Reversal (provision) (11 ) (27 ) 22 Usage — — 196 Translation adjustments 13 15 (4 ) Ending balance $ (183 ) $ (185 ) $ (173 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of December 31, 2022 and 2021 consist of the following (in thousands): December 31, 2022 2021 Finished goods $ 6,799 $ 9,594 Semi-finished goods and work-in-process 40,265 25,968 Raw materials 7,460 9,443 Materials in-transit 36 95 Less: inventory reserve (14,677 ) (5,730 ) Inventories, net $ 39,883 $ 39,370 |
Changes in Inventory Reserve | Changes in inventory reserve for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (5,730 ) $ (5,901 ) $ (5,947 ) Change in reserve Inventory reserve charged to costs of sales (13,310 ) (7,626 ) (7,268 ) Sale of previously reserved inventory 3,631 5,349 4,349 (9,679 ) (2,277 ) (2,919 ) Write off 582 1,875 2,679 Translation adjustments 150 573 (408 ) Reclassified to assets held for sale — — 694 Ending balance $ (14,677 ) $ (5,730 ) $ (5,901 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2022 and 2021 are comprised of the following (in thousands): December 31, 2022 2021 Buildings and related structures $ 24,780 $ 24,273 Machinery and equipment 137,666 105,300 Finance lease right-of-use 389 316 Others 33,890 32,396 196,725 162,285 Less: accumulated depreciation (101,502 ) (94,119 ) Land 13,034 13,898 Construction in progress 2,490 25,818 Property, plant and equipment, net $ 110,747 $ 107,882 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets as of December 31, 2022 and 2021 are comprised of the following (in thousands): December 31, 2022 Gross amount Accumulated amortization Net amount Intellectual property assets $ 9,111 $ (7,181 ) $ 1,930 Intangible assets $ 9,111 $ (7,181 ) $ 1,930 December 31, 2021 Gross amount Accumulated amortization Net amount Intellectual property assets $ 9,312 $ (6,935 ) $ 2,377 Intangible assets $ 9,312 $ (6,935 ) $ 2,377 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases | The tables below present financial information related to the Company’s leases. Supplemental balance sheets information related to leases as of December 31, 2022 and 2021 are as follows (in thousands): December 31, Leases Classification 2022 2021 Assets Operating lease Operating lease right-of-use $ 5,265 $ 4,275 Finance lease Property equipm 143 126 Total lease assets $ 5,408 $ 4,401 Liabilities Current Operating Operating lease liabilities $ 1,397 $ 2,323 Finance Other liabilitie 90 68 Non-current Operating Non-current operating lease liabilities 4,091 1,952 Finance Other non-current liabilitie 63 73 Total lease liabilities $ 5,641 $ 4,416 |
Lease, Cost | The following table presents the weighted average remaining lease term and discount rate: December 31, 2022 2021 Weighted average remaining lease term Operating leases 3.7 years 2.4 years Finance leases 2.4 years 2.0 years Weighted average discount rate Operating leases 6.6 % 4.2 % Finance leases 7.6 % 7.8 % |
Other Lease Information | The components of lease cost included in the Company’s consolidated statements of operations, are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease cost $ 2,261 $ 2,777 $ 1,885 Finance lease cost Amortization of right-of-use 68 65 63 Interest on lease liabilities 10 14 18 Total lease cost $ 2,339 $ 2,856 $ 1,966 The above table does not include an immaterial cost of short-term leases for the years ended December 31, 2022, 2021 and 2020. Other lease information is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,276 $ 2,777 $ 1,885 Operating cash flows from finance leases 10 14 18 Financing cash flows from finance leases 70 65 76 |
Schedule Of Future Lease Payments | The aggregate future lease payments for operating and finance leases as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 1,707 $ 99 2024 1,594 28 2025 1,386 27 2026 958 14 2027 663 — Total future lease payments 6,308 168 Less: Imputed interest (820 ) (15 ) Present value of future payments $ 5,488 $ 153 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of December 31, 2022 and 2021 are comprised of the following (in thousands): December 31, 2022 2021 Payroll, benefits and related taxes, excluding severance benefits $ 7,620 $ 9,548 Withholding tax attributable to intercompany interest income 43 1,950 Outside service fees 1,642 1,088 Merger-related costs — 7,035 Others 383 450 Accrued expenses $ 9,688 $ 20,071 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of Derivative Contracts | Details of derivative contracts as of December 31, 2022 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement January 04, 2022 Zero cost collar $ 30,000 January 2023 to June 2023 March 07, 2022 Zero cost collar $ 24,000 July 2023 to December 2023 April 27, 2022 Zero cost collar $ 42,000 January 2023 to December 2023 Details of derivative contracts as of December 31, 2021 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement May 13, 2021 Zero cost collar $ 39,000 January 2022 to September 2022 August 13, 2021 Zero cost collar $ 48,000 January 2022 to December 2022 |
Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities | The fair values of the Company’s outstanding zero cost collar contracts recorded as liabilities as of December 31, 2022 and 2021 are as follows (in thousands): Derivatives designated as hedging instruments: December 31, 2022 2021 Liability Derivatives: Zero cost collars Other current liabilities $ 2,015 $ 2,020 |
Offsetting of Derivative Liabilities | Offsetting of derivative liabilities as of December 31, 2022 is as follows (in thousands): As of December 31, 2022 Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liability Derivatives: Zero cost collars $ 2,015 $ — $ 2,015 $ — $ (1,940 ) $ 75 Offsetting of derivative liabilities as of December 31, 2021 is as follows (in thousands): As of December 31, 2021 Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liability Derivatives: Zero cost collars $ 2,020 $ — $ 2,020 $ — $ (2,060 ) $ (40 ) |
Impact of Derivative Instruments on Consolidated Statement of Operations | The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the years ended December 31, 2022 and 2021. (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Loss Recognized in AOCI on Derivatives Location/Amount of Loss Reclassified from AOCI Into Statement of Operations Location/Amount of Gain Recognized in Statement of Operations on Derivatives 2022 2021 2022 2021 2022 2021 Zero cost collars $ (8,273 ) $ (4,665 ) Net sales $ (8,514 ) $ (819 ) Other income, net $ 135 $ 123 |
Summary Of Cash Deposits | These cash deposits are recorded as hedge collateral on the consolidated balance sheets. Cash deposits as of December 31, 2022 and 2021 are as follows (in thousands): December 31, Counterparty 2022 2021 SC $ 1,000 $ 1,000 Total $ 1,000 $ 1,000 |
Accrued Severance Benefits (Tab
Accrued Severance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows (in thousands): Year Ended December 31, 2022 2021 Beginning balance $ 51,567 $ 54,452 Provisions 6,289 8,282 Severance payments (6,012 ) (6,679 ) Translation adjustments (3,348 ) (4,488 ) 48,496 51,567 Less: Cumulative contributions to severance insurance deposit accounts (25,149 ) (18,250 ) The National Pension Fund (41 ) (53 ) Group severance insurance plan (185 ) (200 ) Accrued severance benefits, net $ 23,121 $ 33,064 |
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its non-executive Severance Benefit 2023 $ 618 2024 862 2025 1,431 2026 1,782 2027 1,622 2028 – 2032 19,305 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Unit Activities | The following summarizes restricted stock unit activities for the year ended December 31, 2022. Number of Weighted Outstanding at December 31, 2021 833,961 $ 14.33 Granted 726,000 17.41 Vested (374,803 ) 16.99 Forfeited (369,751 ) 17.61 Outstanding at December 31, 2022 815,407 $ 14.36 |
Summary of Stock Option Activities | The following summarizes stock option activities for the year ended December 31, 2022. At the date of grant, all options had an exercise price not less than the fair value of common stock (aggregate intrinsic value in thousands): Number of Options Weighted Aggregate Weighted Outstanding at January 1, 2022 1,297,877 $ 10.78 $ 13,262 3.1 years Expired (7,993 ) 12.81 — — Exercised (152,326 ) 11.73 $ 1,187 — Outstanding at December 31, 2022 1,137,558 $ 10.64 $ 1,702 2.3 years Vested and Exercisable at December 31, 2022 1,137,558 $ 10.64 $ 1,702 2.3 years There were no compensation expenses recorded for the stock options for the years ended December 31, 2022, 2021 and 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense Components of Income Tax Expense (Benefit) Attributable To Income (Loss) From Continuing Operations | The components of income tax expense (benefit) attributable to income (loss) from continuing operations are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Income (loss) from continuing operations before income tax expense (benefit) Domestic $ (1,955 ) $ 41,566 $ (12,305 ) Foreign (924 ) 32,403 23,136 (2,879 ) 73,969 10,831 Current income tax expense (benefit) Domestic 639 6,876 1 Foreign 4,297 9,415 (2,264 ) Uncertain tax position liability (foreign) (33 ) (35 ) (20 ) 4,903 16,256 (2,283 ) Deferred income tax expense (benefit) Domestic (1,264 ) 1,314 (4,461 ) Foreign 1,518 (309 ) (39,484 ) 254 1,005 (43,945 ) Total income tax expense (benefit) $ 5,157 $ 17,261 $ (46,228 ) |
Difference Between Provision for Domestic and Foreign Income Taxes and Amount Calculated by Statutory Tax Rate to Net Income Before Income Taxes | The provision for domestic and foreign income taxes (benefit) incurred is different from the amount calculated by applying the statutory tax rates to the income (loss) from continuing operations before income tax expense (benefit). The significant items causing this difference are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Provision computed at statutory rates $ (605 ) $ 15,533 $ 2,274 State income taxes, net of federal effect — — 730 Change in statutory tax rates 2,006 (259 ) 5,735 Difference in foreign tax rates 302 2,820 1,077 Permanent differences Derivative assets adjustment (62 ) (23 ) 56 TPECs, hybrid and other interest (2,096 ) (3,400 ) (2,722 ) Thin capitalization — — 339 Equity-based compensation (241 ) (802 ) (73 ) Permanent foreign currency gain (loss) 1,676 1,888 (1,813 ) Penalty 75 427 176 GILTI 8,187 6,156 24,224 Intercompany debt restructuring 8,061 971 11,137 Other permanent differences 72 (767 ) 1,335 Withholding tax (2,031 ) 2,060 2,291 State net operating loss write off — 9,844 — Change in valuation allowance (4,582 ) (13,803 ) (75,452 ) Tax credits claimed (5,658 ) (5,508 ) (12,397 ) Uncertain tax positions liability (33 ) (35 ) (20 ) Change in net operating loss carry-forwards (145 ) 621 (3,314 ) Foreign local taxes 919 723 43 Others (688 ) 815 146 Income tax expense (benefit) $ 5,157 $ 17,261 $ (46,228 ) |
Summary of Composition of Net Deferred Income Tax Assets (Liabilities) of Continuing Operations and Discontinued Operations | A summary of the composition of net deferred income tax assets (liabilities) as of December 31, 2022 and 2021 are as follows (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets Inventory reserves $ 3,108 $ 1,313 Accrued expenses 1,668 3,084 Property, plant and equipment 2,685 3,119 Accumulated severance benefits 10,269 11,842 Operating lease right-of-use 1,098 899 Foreign currency translation loss 22,272 17,280 NOL carry-forwards 78,698 87,636 Tax credit carry-forwards 13,337 14,164 Other long-term payable 4,005 2,457 Interest expense deduction limitation 91 4,731 Derivative liabilities 427 463 Others 1,394 1,610 Total deferred tax assets 139,052 148,598 Less: Valuation allowance (84,563 ) (94,212 ) 54,489 54,386 Deferred tax liabilities Prepaid expense 3,065 2,300 Severance benefit deposits 5,364 4,227 Operating lease right-of-use 1,051 899 Foreign currency translation gain 5,621 5,139 Others 1,064 726 Total deferred tax liabilities 16,165 13,291 Net deferred tax assets $ 38,324 $ 41,095 |
Changes in Valuation Allowance for Deferred Tax Assets of Continuing Operations and Discontinued Operations | Changes in valuation allowance for deferred tax assets of continuing operations and discontinued operations for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ 94,212 $ 115,636 $ 246,224 Reductions (4,582 ) (13,803 ) (75,452 ) Changes relating to the discontinued operations — — (67,484 ) NOL/tax credit claimed/expired — — 3,686 Translation adjustments (5,067 ) (7,621 ) 8,662 Ending balance $ 84,563 $ 94,212 $ 115,636 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits | A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of each period is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Unrecognized tax benefits, balance at the beginning $ 386 $ 414 $ 445 Additions based on tax positions related to the current year 40 44 48 Reductions for tax positions of prior years — — (34 ) Lapse of statute of limitations (73 ) (79 ) (76 ) Translation adjustments (37 ) 7 31 Unrecognized tax benefits, balance at the ending $ 316 $ 386 $ 414 |
Summary Of Valuation Allowance Primarily Attributable To Its Subsidiary | The valuation allowances at December 31, 2022, 2021 and 2020 were primarily attributable to its Luxembourg subsidiary. The net operating loss carry-forwards balance as of December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 NOL carry-forwards $ 324,134 $ 502,511 $ 604,977 |
Geographic and Other Informat_2
Geographic and Other Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The following sets forth information relating to the single continuing operating segment (in thousands): Year Ended December 31, 2022 2021 2020 Revenues Standard products business Display Solutions $ 71,432 $ 205,322 $ 299,057 Power Solutions 230,464 227,777 166,462 Total standard products business 301,896 433,099 465,519 Transitional Fab 3 foundry services 35,762 41,131 41,540 Total revenues $ 337,658 $ 474,230 $ 507,059 Year Ended December 31, 2022 2021 2020 Gross Profit Standard products business $ 99,549 $ 149,596 $ 127,099 Transitional Fab 3 foundry services 1,715 3,947 1,218 Total gross profit $ 101,264 $ 153,543 $ 128,317 |
Net Sales by Region, Based on Location of Products are Billed | The following is a summary of net sales—standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands): Year Ended December 31, 2022 2021 2020 Korea $ 105,285 $ 113,776 $ 106,415 Asia Pacific (other than Korea) 179,555 306,333 347,597 United States 10,369 6,052 5,147 Europe 6,687 5,698 4,317 Others — 1,240 2,043 Total $ 301,896 $ 433,099 $ 465,519 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following at December 31, 2022 and 2021, respectively (in thousands): Year Ended December 31, 2022 2021 Foreign currency translation adjustments $ (11,328 ) $ (770 ) Derivative adjustments (1,225 ) (1,460 ) Total $ (12,553 ) $ (2,230 ) |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (770 ) $ (1,460 ) $ (2,230 ) Other comprehensive loss before reclassifications (10,558 ) (8,279 ) (18,837 ) Amounts reclassified from accumulated other comprehensive loss — 8,514 8,514 Net current-period other comprehensive income (loss) (10,558 ) 235 (10,323 ) Ending balance $ (11,328 ) $ (1,225 ) $ (12,553 ) Year Ended December 31, 2021 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ 2,069 $ 1,634 $ 3,703 Other comprehensive loss before reclassifications (2,839 ) (3,913 ) (6,752 ) Amounts reclassified from accumulated other comprehensive loss — 819 819 Net current-period other comprehensive loss (2,839 ) (3,094 ) (5,933 ) Ending balance $ (770 ) $ (1,460 ) $ (2,230 ) Year Ended December 31, 2020 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (4,205 ) $ 1,545 $ (2,660 ) Other comprehensive income before reclassifications 6,274 1,452 7,726 Amounts reclassified from accumulated other comprehensive income — (1,363 ) (1,363 ) Net current-period other comprehensive income 6,274 89 6,363 Ending balance $ 2,069 $ 1,634 $ 3,703 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share | The following table illustrates the computation of basic and diluted earnings (loss) per common share for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands of U.S. dollars, except share data) Basic earnings (loss) per share Income (loss) from continuing operations $ (8,036 ) $ 56,708 $ 57,059 Income from discontinued operations, net of tax — — 287,906 Net income (loss) $ (8,036 ) $ 56,708 $ 344,965 Basic weighted average common stock outstanding 44,850,791 44,879,412 35,213,525 Basic earnings (loss) per common share Continuing operations $ (0.18 ) $ 1.26 $ 1.62 Discontinued operations — — 8.18 Total $ (0.18 ) $ 1.26 $ 9.80 Diluted earnings (loss) per share Income (loss) from continuing operations $ (8,036 ) $ 56,708 $ 57,059 Add back: Interest expense on Exchangeable Notes — 959 5,708 Income (loss) from continuing operations allocated to common stockholders $ (8,036 ) $ 57,667 $ 62,767 Income from discontinued operations, net of tax — — 287,906 Net income (loss) allocated to common stockholders $ (8,036 ) $ 57,667 $ 350,673 Basic weighted average common stock outstanding 44,850,791 44,879,412 35,213,525 Net effect of dilutive equity awards — 1,403,789 1,145,906 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock — 1,426,172 10,144,155 Diluted weighted average common stock outstanding 44,850,791 47,709,373 46,503,586 Diluted earnings (loss) per common share Continuing operations $ (0.18 ) $ 1.21 $ 1.35 Discontinued operations — — 6.19 Total $ (0.18 ) $ 1.21 $ 7.54 |
Schedule of Antidilutive Securities Excluded from the Computation of 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: Year Ended December 31, 2022 2021 2020 Options 1,137,558 50,000 651,417 Restricted Stock Units 815,407 — — |
Business, Basis of Presentati_4
Business, Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Thousands, ₩ in Billions | 12 Months Ended | |||||
Sep. 01, 2020 USD ($) | Sep. 01, 2020 KRW (₩) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 13, 2021 USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash equivalents, highly liquid investments original maturity date | three months or less | |||||
Percentage of employees eligible for severance benefits | 97% | |||||
Shipping and handling cost | $ 50,872 | $ 52,440 | $ 49,974 | |||
Advertising expenses | $ 46 | 71 | 87 | |||
Percentage of tax benefit realized upon settlement | 50% | |||||
Payment terms, description | The standard payment terms with customers are generally thirty to sixty days from the time of shipment, product delivery to the customer’s location or customer acceptance, depending on the terms of the related arrangement. | |||||
Contract duration, description | Substantially all of the Company’s contracts are one year or less in duration. | |||||
Deferred revenue | $ 2,383 | $ 2,680 | ||||
Deferred revenue recognized | 2,383 | 2,680 | ||||
Proceeds from Divestiture of Businesses | 350,553 | |||||
Other Current Assets [Member] | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Prepayments to suppliers | $ 6,605 | 1,708 | ||||
Maximum [Member] | Intellectual Property Assets [Member] | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of Intangible assets | 10 years | |||||
Shipping and Handling [Member] | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Shipping and handling cost | $ 1,060 | $ 1,271 | $ 993 | |||
Foundry Services Group [Member] | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from Sale of Business | $ 350,600 | |||||
MX Foundry Services Group [Member] | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from Divestiture of Businesses | 46,500 | ₩ 360.6 | ||||
Liabilities Incurred | $ 100,000 |
Business, Basis of Presentati_5
Business, Basis of Presentation and Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 30 years |
Minimum [Member] | Buildings and Related Structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Minimum [Member] | Others [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 3 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 40 years |
Maximum [Member] | Buildings and Related Structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 20 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 12 years |
Maximum [Member] | Others [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 04, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Disposal Group Not Discontinued Operation Income Statement [Line Items] | ||||
Gain on sale of foundry services group business | $ 287,117 | |||
MX Foundry Services Group [Member] | ||||
Schedule Of Disposal Group Not Discontinued Operation Income Statement [Line Items] | ||||
Gain on sale of foundry services group business | $ 287,117 | |||
Foundry Services Group And Fab Four [Member] | ||||
Schedule Of Disposal Group Not Discontinued Operation Income Statement [Line Items] | ||||
Restructuring and other charges | 15,873 | |||
Foundry Services Group And Fab Four [Member] | MX Foundry Services Group [Member] | ||||
Schedule Of Disposal Group Not Discontinued Operation Income Statement [Line Items] | ||||
Accounts receivable from transaction services agreement | $ 41,115 | $ 46,611 | $ 7,643 |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale - Schedule Of Results From Discontinued Operations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Operating expenses: | |
Income (loss) from discontinued operations, net of tax | $ 287,906 |
Discontinued Operations [Member] | |
Revenues: | |
Total revenues | 228,845 |
Cost of sales: | |
Total cost of sales | 156,985 |
Gross profit | 71,860 |
Operating expenses: | |
Selling, general and administrative expenses | 14,797 |
Research and development expenses | 19,484 |
Restructuring and other charges | 15,873 |
Total operating expenses | 50,154 |
Operating income from discontinued operations | 21,706 |
Foreign currency gain, net | 1,277 |
Others, net | 72 |
Income from discontinued operations before income tax expense | 23,055 |
Income tax expense | 11,452 |
Gain on sale of discontinued operations | 287,117 |
Transaction costs | (10,814) |
Income (loss) from discontinued operations, net of tax | 287,906 |
Foundry Services Group [Member] | Discontinued Operations [Member] | |
Revenues: | |
Total revenues | 254,732 |
Cost of sales: | |
Total cost of sales | 182,872 |
Fab Three Foundry Services [Member] | Discontinued Operations [Member] | |
Revenues: | |
Total revenues | (25,887) |
Cost of sales: | |
Total cost of sales | $ (25,887) |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale - Schedule Of Results From Discontinued Operations Alternative Cash Flow Information (Detail) - Foundry Services Group And Fab Three Foundry Services [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Significant non-cash operating activities: | |
Depreciation and amortization | $ 5,365 |
Provision for severance benefits | 8,209 |
Stock-based compensation | 388 |
Investing activities: | |
Capital expenditures | $ (5,838) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 2,015 | $ 2,020 |
Estimate of Fair Value Measurement [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 2,015 | $ 2,020 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 2,015 | $ 2,020 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Sale | $ 0 | $ 0 | $ 0 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||||
Accounts receivable | $ 35,610 | $ 50,363 | ||
Notes receivable | 32 | 1,242 | ||
Allowance for credit losses | (79) | (466) | $ (188) | $ (49) |
Sales return reserves | (183) | (185) | $ (173) | $ (387) |
Accounts receivable, net | $ 35,380 | $ 50,954 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Changes in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Beginning balance | $ (466) | $ (188) | $ (49) |
Provision | (302) | (131) | |
Write off | 378 | ||
Translation adjustments | 9 | 24 | (8) |
Ending balance | $ (79) | $ (466) | $ (188) |
Accounts Receivable - Schedul_3
Accounts Receivable - Schedule of Changes in Sales Return Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Beginning balance | $ (185) | $ (173) | $ (387) |
Reversal (provision) | (11) | (27) | 22 |
Usage | 196 | ||
Translation adjustments | 13 | 15 | (4) |
Ending balance | $ (183) | $ (185) | $ (173) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||||
Finished goods | $ 6,799 | $ 9,594 | ||
Semi-finished goods and work-in-process | 40,265 | 25,968 | ||
Raw materials | 7,460 | 9,443 | ||
Materials in-transit | 36 | 95 | ||
Less: inventory reserve | (14,677) | (5,730) | $ (5,901) | $ (5,947) |
Inventories, net | $ 39,883 | $ 39,370 |
Inventories - Changes in Invent
Inventories - Changes in Inventory Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |||
Beginning balance | $ (5,730) | $ (5,901) | $ (5,947) |
Change in reserve | |||
Inventory reserve charged to costs of sales | (13,310) | (7,626) | (7,268) |
Sale of previously reserved inventory | 3,631 | 5,349 | 4,349 |
Change in reserve | (9,679) | (2,277) | (2,919) |
Write off | 582 | 1,875 | 2,679 |
Translation adjustments | 150 | 573 | (408) |
Reclassified to assets held for sale | 694 | ||
Ending balance | $ (14,677) | $ (5,730) | $ (5,901) |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 14,317 | $ 13,495 | $ 10,448 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 196,725 | $ 162,285 |
Less: accumulated depreciation | (101,502) | (94,119) |
Land | 13,034 | 13,898 |
Construction in progress | 2,490 | 25,818 |
Property, plant and equipment, net | 110,747 | 107,882 |
Buildings and Related Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,780 | 24,273 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 137,666 | 105,300 |
Finance Lease Right Of Use Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 389 | 316 |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 33,890 | $ 32,396 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangible assets | $ 683 | $ 744 | $ 668 |
Estimated aggregate amortization expense of intangible assets in 2023 | 595 | ||
Estimated aggregate amortization expense of intangible assets in 2024 | 456 | ||
Estimated aggregate amortization expense of intangible assets in 2025 | 339 | ||
Estimated aggregate amortization expense of intangible assets in 2026 | 235 | ||
Estimated aggregate amortization expense of intangible assets in 2027 | $ 148 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | $ 9,111 | $ 9,312 |
Accumulated amortization | (7,181) | (6,935) |
Intangible asset, Net amount | 1,930 | 2,377 |
Intellectual Property Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 9,111 | 9,312 |
Accumulated amortization | (7,181) | (6,935) |
Intangible asset, Net amount | $ 1,930 | $ 2,377 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non cash transaction amount of lease liabilities arisinf from obtaining right of use assets | $ 4,601 | $ 2,768 | $ 4,702 |
Maximum [Member] | |||
Lease Agreements Remaining Term of Lease | 5 years | ||
Minimum [Member] | |||
Lease Agreements Remaining Term of Lease | 1 year |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease | $ 5,265 | $ 4,275 |
Total lease assets | 5,408 | 4,401 |
Current | ||
Operating | 1,397 | 2,323 |
Non-current | ||
Operating | 4,091 | 1,952 |
Total lease liabilities | 5,641 | 4,416 |
Operating Lease Right Of Use Assets [Member] | ||
Assets | ||
Operating lease | 5,265 | 4,275 |
Property, Plant and Equipment, Net [Member] | ||
Assets | ||
Finance lease | $ 143 | $ 126 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Current Operating Lease Liabilities [Member] | ||
Current | ||
Operating | $ 1,397 | $ 2,323 |
Other Current Liabilities [Member] | ||
Current | ||
Finance | $ 90 | $ 68 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Non Current Operating Lease Liabilities [Member] | ||
Non-current | ||
Operating | $ 4,091 | $ 1,952 |
Other Noncurrent Liabilities [Member] | ||
Non-current | ||
Finance | $ 63 | $ 73 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Leases - Components of lease co
Leases - Components of lease cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 2,261 | $ 2,777 | $ 1,885 |
Finance lease cost [Abstract] | |||
Amortization of right-of-use assets | 68 | 65 | 63 |
Interest on lease liabilities | 10 | 14 | 18 |
Total lease cost | $ 2,339 | $ 2,856 | $ 1,966 |
Leases - Other lease informatio
Leases - Other lease information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 2,276 | $ 2,777 | $ 1,885 |
Operating cash flows from finance leases | 10 | 14 | 18 |
Financing cash flows from finance leases | $ 70 | $ 65 | $ 76 |
Weighted average remaining lease term | |||
Operating leases | 3 years 8 months 12 days | 2 years 4 months 24 days | |
Finance leases | 2 years 4 months 24 days | 2 years | |
Weighted average discount rate | |||
Operating leases | 6.60% | 4.20% | |
Finance leases | 7.60% | 7.80% |
Leases - Aggregate future lease
Leases - Aggregate future lease payment (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Operating Leases, 2023 | $ 1,707 |
Operating Leases, 2024 | 1,594 |
Operating Leases, 2025 | 1,386 |
Operating Leases, 2026 | 958 |
Operating Leases, 2027 | 663 |
Operating Leases, Total future lease payments | 6,308 |
Less: Present value adjustment | (820) |
Present value of future payments | 5,488 |
Finance Leases [Abstract] | |
Finance Leases, 2023 | 99 |
Finance Leases, 2024 | 28 |
Finance Leases, 2025 | 27 |
Finance Leases, 2026 | 14 |
Finance Leases, 2027 | 0 |
Finance Leases, Total future lease payments | 168 |
Less: Present value adjustment | (15) |
Present value of future payments | $ 153 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Payroll, benefits and related taxes, excluding severance benefits | $ 7,620 | $ 9,548 |
Withholding tax attributable to intercompany interest income | 43 | 1,950 |
Outside service fees | 1,642 | 1,088 |
Merger-related costs | 0 | 7,035 |
Others | 383 | 450 |
Accrued expenses | $ 9,688 | $ 20,071 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Estimated amount reclassified from accumulated other comprehensive income into income | $ 1,225 | |
Zero Cost Collar and Forward Contracts [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member] | ||
Derivative [Line Items] | ||
Threshold amount of cash collateral | 500 | |
Cash collateral for credit exposure in derivatives | 1,840 | $ 760 |
Termination provisions for cash and cash equivalents | 30,000 | |
Zero Cost Collar and Forward Contracts [Member] | Standard Chartered Bank Korea Limited [Member] | ||
Derivative [Line Items] | ||
Cash collateral for credit exposure in derivatives | $ 100 | $ 1,300 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Details of Derivative Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Zero Cost Collar One [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Jan. 04, 2022 | May 13, 2021 |
Type of derivative | Zero cost collar | Zero cost collar |
Total notional amount | $ 30,000 | $ 39,000 |
Month of settlement, start | 2023-01 | 2022-01 |
Month of settlement, end | 2023-06 | 2022-09 |
Zero Cost Collar Two [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Mar. 07, 2022 | Aug. 13, 2021 |
Type of derivative | Zero cost collar | Zero cost collar |
Total notional amount | $ 24,000 | $ 48,000 |
Month of settlement, start | 2023-07 | 2022-01 |
Month of settlement, end | 2023-12 | 2022-12 |
Zero Cost Collar Three [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Apr. 27, 2022 | |
Type of derivative | Zero cost collar | |
Total notional amount | $ 42,000 | |
Month of settlement, start | 2023-01 | |
Month of settlement, end | 2023-12 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Zero Cost Collars [Member] | ||
Liability Derivatives: | ||
Other current liabilities | $ 2,015 | $ 2,020 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Offsetting of Derivative Liabilities (Detail) - Zero Cost Collars [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Liability Derivatives, Gross amounts of recognized liabilities | $ 2,015 | $ 2,020 |
Liability Derivatives, Gross amounts offset in the balance sheets | 0 | 0 |
Liability Derivatives, Net amounts of liabilities presented in the balance sheets | 2,015 | 2,020 |
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 pledged | (1,940) | (2,060) |
Liability Derivatives, Net amount after master netting | $ 75 | $ (40) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Impact of Derivative Instruments on Consolidated Statement of Operations (Detail) - Zero Cost Collars [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ (8,273) | $ (4,665) |
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | (8,514) | (819) |
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | $ 135 | $ 123 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Cash deposits (Detail) - Zero Cost Collar and Forward Contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Assets [Line Items] | ||
Deposit with counterparty | $ 1,000 | $ 1,000 |
SC [Member] | ||
Deposit Assets [Line Items] | ||
Deposit with counterparty | $ 1,000 | $ 1,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Mar. 01, 2021 | Oct. 02, 2020 | Jan. 17, 2017 | Jul. 18, 2013 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||
Loss on early extinguishment of borrowings, net | $ 0 | $ 0 | $ (766,000) | ||||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 225,000,000 | ||||||
Interest rate | 6.625% | ||||||
Due date | Jul. 15, 2021 | ||||||
Aggregate principal amount of senior notes pricing | 99.50% | ||||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 100% | ||||||
Interest expense related to debt | $ 11,926,000 | ||||||
Debt Instrument, Repurchased Face Amount | $ 224,250,000 | ||||||
Loss on early extinguishment of borrowings, net | 766,000 | ||||||
Repayments of Debt | $ 227,428,000 | ||||||
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 86,250,000 | ||||||
Interest rate | 5% | 5% | 5% | 5% | |||
Due date | Mar. 01, 2021 | ||||||
Aggregate principal amount of senior notes pricing | 5% | ||||||
Convertible notes principal amount denomination value | $ 1,000 | ||||||
Conversion of converted notes, shares issued | 10,144,131 | 121.1387 | |||||
Exchange price | $ 8.26 | ||||||
Interest expense related to the Exchangeable Notes | $ 958,000 | $ 5,708,000 |
Accrued Severance Benefits - Ad
Accrued Severance Benefits - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Percentage of employees eligible for severance benefits | 97% |
Korea [Member] | Minimum [Member] | |
Retirement age of employees | 60 years |
Accrued Severance Benefits - Ch
Accrued Severance Benefits - Changes in Accrued Severance Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | ||
Beginning balance | $ 51,567 | $ 54,452 |
Provisions | 6,289 | 8,282 |
Severance payments | (6,012) | (6,679) |
Translation adjustments | (3,348) | (4,488) |
Ending balance | 48,496 | 51,567 |
Less: Cumulative contributions to severance insurance deposit accounts | (25,149) | (18,250) |
The National Pension Fund | (41) | (53) |
Group severance insurance plan | (185) | (200) |
Accrued severance benefits, net | $ 23,121 | $ 33,064 |
Accrued Severance Benefits - Fu
Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Postemployment Benefits [Abstract] | |
2022 | $ 618 |
2023 | 862 |
2024 | 1,431 |
2025 | 1,782 |
2026 | 1,622 |
2027 – 2031 | $ 19,305 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 4 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 | Dec. 21, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 11,352,919 | 11,352,919 | |||||
Number of shares reserved for future issuance | 1,351,913 | 1,351,913 | |||||
Accelerated Share Repurchase Program, Adjustment | $ (37,500) | ||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 37,500 | $ 37,500 | |||||
Sale of stock Shares, Issued | 994,695 | ||||||
Aggregate purchase price of shares | $ 20,073 | ||||||
Sale of stock issue price per share | $ 20.18 | ||||||
Additional Paid-In Capital [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Accelerated Share Repurchase Program, Adjustment | $ 17,217 | (17,427) | |||||
Treasury Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Accelerated Share Repurchase Program, Adjustment | $ (17,217) | (20,073) | |||||
Treasury Stock [Member] | Reclassified As A Treasury Stock From Additional Paid In Capital [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Sale of stock Shares, Issued | 1,031,576 | ||||||
Aggregate purchase price of shares | $ 17,217 | ||||||
Sale of stock issue price per share | $ 16.69 | ||||||
Accelerated Stock Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 75,000 | ||||||
Accelerated Share Repurchase Program, Adjustment | $ 37,500 | ||||||
Stock Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 87,500 | ||||||
Aggregate purchase price | $ 12,511 | ||||||
Sale of aggregate purchase price per share | $ 10.13 | ||||||
Stock repurchased during period, Shares | 1,235,650 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 50,000 | ||||||
Stock Repurchase Program [Member] | Previously Reported [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 75,000 | ||||||
Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share based compensation expense | $ 6,037 | 7,704 | $ 6,311 | ||||
Unrecognized compensation cost related to unvested restricted stock units | $ 4,036 | $ 4,036 | |||||
Unrecognized compensation cost, period for recognition | 8 months 12 days | ||||||
Fair value of restricted stock units vested | $ 6,369 | $ 5,788 | $ 3,839 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation- Summary of Restricted Stock Unit Activities (Detail) - Restricted Stock Units [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stock Units, Outstanding Beginning Balance | shares | 833,961 |
Number of Restricted Stock Units, Granted | shares | 726,000 |
Number of Restricted Stock Units, Vested | shares | (374,803) |
Number of Restricted Stock Units, Forfeited | shares | (369,751) |
Number of Restricted Stock Units, Outstanding Ending Balance | shares | 815,407 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Outstanding Beginning Balance | $ / shares | $ 14.33 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Granted | $ / shares | 17.41 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Vested | $ / shares | 16.99 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Forfeited | $ / shares | 17.61 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Outstanding Ending Balance | $ / shares | $ 14.36 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding Beginning Balance, Number of Options | 1,297,877 | |
Expired, Number of Options | (7,993) | |
Exercised, Number of Options | (152,326) | |
Outstanding Ending Balance, Number of Options | 1,137,558 | 1,297,877 |
Vested and expected to vest, Number of Options | 1,137,558 | |
Outstanding Beginning Balance, Weighted Average Exercise Price of Stock Options | $ 10.78 | |
Expired, Weighted Average Exercise Price of Stock Options | 12.81 | |
Exercised, Weighted Average Exercise Price of Stock Options | 11.73 | |
Outstanding Ending Balance, Weighted Average Exercise Price of Stock Options | 10.64 | $ 10.78 |
Vested and Exercisable, Weighted Average Exercise Price of Stock Options | $ 10.64 | |
Outstanding Beginning Balance, Aggregate Intrinsic Value of Stock Options | $ 13,262 | |
Exercised, Aggregate Intrinsic Value of Stock Options | 1,187 | |
Outstanding Ending Balance, Aggregate Intrinsic Value of Stock Options | 1,702 | $ 13,262 |
Vested and expected to vest, Aggregate Intrinsic Value of Stock Options | $ 1,702 | |
Outstanding, Weighted Average Remaining Contractual Life of Stock Options | 2 years 3 months 18 days | 3 years 1 month 6 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life of Stock Options | 2 years 3 months 18 days |
Early termination and other c_2
Early termination and other charges, net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Regulatory Requests Non Recurring Professional Fees And Expenses | $ 3,430 | ||
Gain (Loss) on Disposition of Assets | $ 537 | $ 1,419 | $ 554 |
One time employee incentives and professional service fees and expenses | 2,821 | ||
Expenses incurred in connection with Strategic evaluations | $ 1,014 | ||
One time Termination Benefit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Early Termination Charges | $ 4,422 |
Foreign Currency Loss, Net - Ad
Foreign Currency Loss, Net - Additional Information (Detail) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Foreign Currency Transaction [Abstract] | |||
Exchange rates using first base rate | 1,267.3 | 1,185.5 | 1,088 |
Intercompany loan balances | $ 310,988 | $ 344,411 | $ 378,852 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 16, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||||
Deferred tax assets, valuation allowance amount | $ 84,563 | $ 94,212 | $ 115,636 | $ 246,224 | |
Net operating loss carry-forwards | $ 324,134 | 502,511 | 604,977 | ||
Net operating loss carry-forwards, expiration period | indefinite period of time | ||||
Net operating loss utilized | $ 19,900 | 70,672 | 169,600 | ||
Income tax expenses (benefits) | 5,157 | 17,261 | (46,228) | ||
Accrued Interest and Penalities | 0 | 0 | 0 | ||
Income tax penalties | 0 | 0 | 0 | ||
Change in valuation allowance | 4,582 | 13,803 | 75,452 | ||
Income tax benefit attributable to change in valuation allowances | 13,803 | ||||
UnrecognizedTaxBenefits | 316 | 386 | 414 | $ 445 | |
Release of valuation allowances based on the realizability | 1,912 | 3,959 | 43,874 | ||
State net operating loss write off | $ 9,844 | ||||
Release of valuation allowances related earnings | 2,670 | 31,578 | |||
Effective income tax reconciliation global intangible low taxed income | 8,187 | ||||
Inflation Reduction Act Of Two Thousand And Twenty Two [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Alternate minimum tax rate percentage | 15% | ||||
Minimum income limit threshold for alternative minimum tax rate levy | $ 1,000,000 | ||||
Percentage of excise tax | 1% | ||||
Tax Period Two Thousand And Fourty [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards retained by Us parent and its domestic subsidiary | 50,522 | ||||
Luxembourg Subsidiary [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss utilized | 271,753 | ||||
Dutch [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax credit carry-forwards | 13,337 | ||||
Korean Subsidiary [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carry-forwards | $ 271,753 | ||||
Net operating loss expiration date | 2039 | ||||
Income tax expenses (benefits) | $ 8,061 | 11,137 | |||
Effective income tax rate reconciliation permanent adjustments amount | 24,224 | ||||
Income Tax Expense Waiver Amount | 11,890 | ||||
Income Tax benefit due to chnages in Valuation Allowance rlated to Deferred Tax Assets | $ 39,413 | ||||
Reversal of tax witholding | 2,031 | ||||
Korean Subsidiary [Member] | Indefinite Tax Period [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carry-forwards | 263,506 | ||||
Korean Subsidiary [Member] | Tax Period Two Thousand Twenty Six [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carry-forwards | $ 8,247 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) Attributable To Income (Loss) From Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income (loss) before income tax expenses | |||
Domestic | $ (1,955) | $ 41,566 | $ (12,305) |
Foreign | (924) | 32,403 | 23,136 |
Income (loss) from continuing operations before income tax expense (benefit) | (2,879) | 73,969 | 10,831 |
Current income tax expense (benefit) | |||
Domestic | 639 | 6,876 | 1 |
Foreign | 4,297 | 9,415 | (2,264) |
Uncertain tax position liability (domestic) | (33) | (35) | (20) |
Uncertain tax position liability (foreign) | 4,903 | 16,256 | (2,283) |
Deferred income tax expense (benefit) | |||
Domestic | (1,264) | 1,314 | (4,461) |
Foreign | 1,518 | (309) | (39,484) |
Deferred income tax expense (benefit) | 254 | 1,005 | (43,945) |
Total Income tax expense (benefit) | 5,157 | 17,261 | (46,228) |
Foreign [Member] | |||
Current income tax expense (benefit) | |||
Uncertain tax position liability (domestic) | $ (33) | $ (35) | $ (20) |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Provision for Domestic and Foreign Income Taxes and Amount Calculated by Statutory Tax Rate to Net Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision computed at statutory rates | $ (605) | $ 15,533 | $ 2,274 |
State income taxes, net of federal effect | 730 | ||
Change in statutory tax rates | 2,006 | (259) | 5,735 |
Difference in foreign tax rates | 302 | 2,820 | 1,077 |
Permanent differences | |||
Derivative assets adjustment | (62) | (23) | 56 |
TPECs, hybrid and other interest | (2,096) | (3,400) | (2,722) |
Thin capitalization | 339 | ||
Equity-based compensation | (241) | (802) | (73) |
Permanent foreign currency gain (loss) | 1,676 | 1,888 | (1,813) |
Penalty | 75 | 427 | 176 |
GILTI | 8,187 | 6,156 | 24,224 |
Intercompany debt restructuring | 8,061 | 971 | 11,137 |
Other permanent differences | 72 | (767) | 1,335 |
Withholding tax | (2,031) | 2,060 | 2,291 |
State net operating loss write off | 9,844 | ||
Change in valuation allowance | (4,582) | (13,803) | (75,452) |
Tax credits claimed | (5,658) | (5,508) | (12,397) |
Uncertain tax positions liability | (33) | (35) | (20) |
Change in net operating loss carry-forwards | (145) | 621 | (3,314) |
Foreign local taxes | 919 | 723 | 43 |
Others | (688) | 815 | 146 |
Total Income tax expense (benefit) | $ 5,157 | $ 17,261 | $ (46,228) |
Income Taxes - Summary of Compo
Income Taxes - Summary of Composition of Net Deferred Income Tax Assets (Liabilities) Of Continuing Operations and Discontinued Operations (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||||
Inventory reserves | $ 3,108 | $ 1,313 | ||
Accrued expenses | 1,668 | 3,084 | ||
Property, plant and equipment | 2,685 | 3,119 | ||
Accumulated severance benefits | 10,269 | 11,842 | ||
Operating lease right-of-use liabilities | 1,098 | 899 | ||
Foreign currency translation loss | 22,272 | 17,280 | ||
NOL carry-forwards | 78,698 | 87,636 | ||
Tax credit carry-forwards | 13,337 | 14,164 | ||
Other long-term payable | 4,005 | 2,457 | ||
Interest expense deduction limitation | 91 | 4,731 | ||
Derivative liabilities | 427 | 463 | ||
Others | 1,394 | 1,610 | ||
Total deferred tax assets | 139,052 | 148,598 | ||
Less: Valuation allowance | (84,563) | (94,212) | $ (115,636) | $ (246,224) |
Deferred tax assets, net | 54,489 | 54,386 | ||
Deferred tax liabilities | ||||
Prepaid expense | 3,065 | 2,300 | ||
Severance benefit deposits | 5,364 | 4,227 | ||
Operating lease right-of-use assets | 1,051 | 899 | ||
Foreign currency translation gain | 5,621 | 5,139 | ||
Others | 1,064 | 726 | ||
Total deferred tax liabilities | 16,165 | 13,291 | ||
Net deferred tax assets | $ 38,324 | $ 41,095 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance for Deferred Tax Assets of Continuing Operations and Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 94,212 | $ 115,636 | $ 246,224 |
Reductions | (4,582) | (13,803) | (75,452) |
Changes relating to the discontinued operations | (67,484) | ||
NOL/tax credit claimed/expired | 3,686 | ||
Translation adjustments | (5,067) | (7,621) | 8,662 |
Ending balance | $ 84,563 | $ 94,212 | $ 115,636 |
Income taxes - Summary of Valua
Income taxes - Summary of Valuation Allowance primarily Attributable to its Subsidiary (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||
NOL carry-forwards | $ 324,134 | $ 502,511 | $ 604,977 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, balance at the beginning | $ 386 | $ 414 | $ 445 |
Additions based on tax positions related to the current year | 40 | 44 | 48 |
Additions (reductions) for tax positions of prior years | (34) | ||
Lapse of statute of limitations | (73) | (79) | (76) |
Translation adjustments | (37) | 7 | 31 |
Unrecognized tax benefits, balance at the ending | $ 316 | $ 386 | $ 414 |
Geographic and Other Informat_3
Geographic and Other Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member] | Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 69% | 80% | 88% |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer One [Member] | Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 19% | 42.50% | 56.20% |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member] | Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 13.80% | 10.40% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Top Customer One [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 25.10% | 30.30% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Top Customer Two [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 15.20% | 15.50% | |
Geographic Concentration Risk [Member] | Net Sales [Member] | Asia Pacific Other Than Korea [Member] | Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 68.50% | ||
Geographic Concentration Risk [Member] | Net Sales [Member] | CHINA | Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 65.80% | 82% | |
Geographic Concentration Risk [Member] | Net Sales [Member] | Vietnam [Member] | Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 13.60% | 26.40% | 14.40% |
Geographic Concentration Risk [Member] | Property, Plant and Equipment [Member] | Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 99% |
Geographic and Other Informat_4
Geographic and Other Information - Schedule of Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 337,658 | $ 474,230 | $ 507,059 |
Total gross profit | 101,264 | 153,543 | 128,317 |
Standard products business [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 301,896 | 433,099 | 465,519 |
Total gross profit | 99,549 | 149,596 | 127,099 |
Fab Three Foundry Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 35,762 | 41,131 | 41,540 |
Total gross profit | 1,715 | 3,947 | 1,218 |
Operating Segments [Member] | Standard products business [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 301,896 | 433,099 | 465,519 |
Operating Segments [Member] | Standard products business [Member] | Display Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 71,432 | 205,322 | 299,057 |
Operating Segments [Member] | Standard products business [Member] | Power Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 230,464 | $ 227,777 | $ 166,462 |
Geographic and Other Informat_5
Geographic and Other Information - Net Sales by Region, Based on Location of Products are Billed (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 337,658 | $ 474,230 | $ 507,059 |
Standard products business [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 301,896 | 433,099 | 465,519 |
Standard products business [Member] | Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 105,285 | 113,776 | 106,415 |
Standard products business [Member] | Asia Pacific (Other Than Korea) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 179,555 | 306,333 | 347,597 |
Standard products business [Member] | United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 10,369 | 6,052 | 5,147 |
Standard products business [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 6,687 | 5,698 | 4,317 |
Standard products business [Member] | Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 0 | $ 1,240 | $ 2,043 |
Merger Agreement - Additional I
Merger Agreement - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 20, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2023 | Oct. 31, 2022 | Oct. 28, 2022 | Aug. 05, 2022 | Apr. 04, 2022 | |
Business Acquisition [Line Items] | |||||||||
Merger Related Costs Income Net | $ 34,673 | $ 653 | |||||||
Merger Termination Fee | $ 70,200 | ||||||||
Proceed from termination cost | $ 51,000 | ||||||||
Secures Deferred Merger Termination Fee | $ 19,200 | ||||||||
Termination Agreement [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Termination agreement outstanding amount | $ 1,800 | $ 4,800 | |||||||
Termination agreement amount Paid | $ 3,000 | $ 14,400 | |||||||
Letter agreement outstanding amount | $ 1,800 | ||||||||
Letter Agreement [Member] | Due on or Before December 23, 2022 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Letter agreement outstanding amount | $ 1,800 | ||||||||
Letter Agreement [Member] | Subsequent Event [Member] | Due on or Before January 31, 2023 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Letter agreement outstanding amount | $ 1,800 | ||||||||
Other Receivable [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Deferred Merger Termination Fee As Other Receivable | $ 19,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Income tax related to accumulated other comprehensive income (loss) | $ 6 | $ 752 | $ 316 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (11,328) | $ (770) |
Derivative adjustments | (1,225) | (1,460) |
Total | $ (12,553) | $ (2,230) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | $ 452,762 | $ 345,600 | $ (14,981) |
Total other comprehensive income (loss) | (10,323) | (5,933) | 6,363 |
Balance ending | 428,153 | 452,762 | 345,600 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | (770) | 2,069 | (4,205) |
Other comprehensive income (loss) before reclassifications | (10,558) | (2,839) | 6,274 |
Total other comprehensive income (loss) | (10,558) | (2,839) | 6,274 |
Balance ending | (11,328) | (770) | 2,069 |
Derivative Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | (1,460) | 1,634 | 1,545 |
Other comprehensive income (loss) before reclassifications | (8,279) | (3,913) | 1,452 |
Amounts reclassified from accumulated other comprehensive loss (income) | 8,514 | 819 | (1,363) |
Total other comprehensive income (loss) | 235 | (3,094) | 89 |
Balance ending | (1,225) | (1,460) | 1,634 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | (2,230) | 3,703 | (2,660) |
Other comprehensive income (loss) before reclassifications | (18,837) | (6,752) | 7,726 |
Amounts reclassified from accumulated other comprehensive loss (income) | 8,514 | 819 | (1,363) |
Total other comprehensive income (loss) | (10,323) | (5,933) | 6,363 |
Balance ending | $ (12,553) | $ (2,230) | $ 3,703 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2022 BusinessLines $ / shares | Dec. 31, 2021 $ / shares | |
Common stock, par value | $ 0.01 | $ 0.01 |
Redemption of rights per right | BusinessLines | 0.001 | |
Common Stock, Voting Rights | 50 | |
Acquiring Person [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 12.50% | |
Passive Institutional Investor [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 20% | |
Series A1 [Member] | ||
Common stock, par value | $ 0.01 | |
Sale of stock issue price per share | $ 80 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic earnings (loss) per share | |||
Income (loss) from continuing operations | $ (8,036) | $ 56,708 | $ 57,059 |
Income from discontinued operations, net of tax | 0 | 0 | 287,906 |
Net income (loss) | $ (8,036) | $ 56,708 | $ 344,965 |
Basic weighted average common stock outstanding | 44,850,791 | 44,879,412 | 35,213,525 |
Basic earnings (loss) per common share | |||
Continuing operations | $ (0.18) | $ 1.26 | $ 1.62 |
Discontinued operations | 0 | 0 | 8.18 |
Total | $ (0.18) | $ 1.26 | $ 9.8 |
Diluted earnings (loss) per share | |||
Income (loss) from continuing operations | $ (8,036) | $ 56,708 | $ 57,059 |
Add back: Interest expense on Exchangeable Notes | 0 | 959 | 5,708 |
Income (loss) from continuing operations allocated to common stockholders | (8,036) | 57,667 | 62,767 |
Income from discontinued operations, net of tax | 0 | 0 | 287,906 |
Net income (loss) allocated to common stockholders | $ (8,036) | $ 57,667 | $ 350,673 |
Basic weighted average common stock outstanding | 44,850,791 | 44,879,412 | 35,213,525 |
Net effect of dilutive equity awards | 0 | 1,403,789 | 1,145,906 |
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 0 | 1,426,172 | 10,144,155 |
Diluted weighted average common stock outstanding | 44,850,791 | 47,709,373 | 46,503,586 |
Continuing operations | $ (0.18) | $ 1.21 | $ 1.35 |
Discontinued operations | 0 | 0 | 6.19 |
Total | $ (0.18) | $ 1.21 | $ 7.54 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Loss Per Common Share (Parenthetical) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 17, 2017 |
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | ||||
Earnings Per Share [Line Items] | ||||
Conversion of exchangeable notes to common stock rate | 5% | 5% | 5% | 5% |
Earnings (Loss) Per Share - S_3
Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from the Computation of Loss Per Common Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 1,137,558 | 50,000 | 651,417 |
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 | 815,407 | 0 |