MX - Earnings call transcript Q2 2020 | Magnachip Semiconductor Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q2 2020 MagnaChip Semiconductor Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded [Operator Instructions]. I would now like to hand the conference over to your speaker today, Ms.

So-Yeon Jeong, Head of IR. Please go ahead.

So-Yeon Jeong

you. Thank thank the us XX, second and financial discuss XXXX. for for results quarter you everyone, to joining MagnaChip's Hello, ended June

Access the for available Relations the archived website. is The filed the telephone call, replay information be release and earnings call A one the on stock will on earnings completion today's after the be found Investor second be can after in market our webcast release. company's that the year. will of website closed shortly quarter provided today press was of

are quarter the Officer; and recent overview, today Officer. provide prepared third the and following operating our will me YJ YJ Young Financial the business and Young Joining guidance a remarks. Kim, for will MagnaChip's Executive Chief Q&A There company's session performance quarter. and review Chief will financial be the discuss for Woo, results

MagnaChip's During statements and expectations. the call, make may course this of about outlook business we forward-looking conference

facts that described in Our forward-looking are filings. on as SEC risks uncertainties statements harbor historical and, and today as subject and beliefs statements our to therefore, the all are predictions of and found reflect -- in discussion other safe our

will can in the Relations are of financial found are our reconciliation directly with that discuss we measures The measures Investor under non-GAAP illustrate on to GAAP financial release the A at non-GAAP measures. an measures to useful. intended be During may second be website call, accepted quarter available most comparable www.magnachip.com. our earnings accounting the the MagnaChip's of not performance operating also accordance in but prepared non-GAAP generally principles alternative measure

YJ Kim. Now I'll turn call the YJ? to over

Young-Joon Kim

you today. our Thank call joining Thank you. Hello, everyone. for

our IR; welcome of both, Dr. to So-Yeon like First Head I'd of Jeong, and all,

I roles Camillo Korea veteran CFO, our Liz July. company. named a MagnaChip joined our Martino Board opens pure-play want Chairman important in in our Directors. chapter as of Both Young Ms. Semiconductor to Mr. June call of newly play Board Microsoft expanded standard changes first as MagnaChip. products in a also and acknowledge to new earnings will at Woo, their was Chung

During of demonstrated the in and continuity our to second commitment keeping our services customers. and quarter, our executed the excellent ability to delivered the to results safety to employees be COVID-XX. We with well of our of impact resilient our team

and to end safety We range and and of continue the due further in to Key risks our guidance to diluted to product for demand sequentially Revenue as compared supply Foundry per came surpassed management. bottom flattish health exceeded margin. due our take of chain expectations in fab potential to our the gross steps Power to driven QX. businesses. earnings our utilization. related higher combined employees and the financial On Non-GAAP business the operation strong high continuing the metrics was improved expectations. above non-GAAP from improved revenue, to Gross line in share higher mitigate margin a $X.XX $X.XX mix by

cash cash since highest balance was $XXX.X consecutive fifth marking in from At the our of second $XX March QX, cash the the end million. operating increased flow the the In quarter, For generated IPO operations XXXX. level quarter, flow. we to million,

building. to Fab addition and we made These the close tasks the date, the working to to In complete tasks am shared has and this with pending outstanding progress remaining team related X. financial separating our infrastructure sale business progress our transaction. the with delivering R&D substantial mostly Foundry to of comfortable are and are to results, diligently I

transferring quarter. and and close the relocating schedule on the Fab will X during are R&D center likely team am made Based I October to our IT of anticipate time transaction OLED third estimate our development now and systems, of new We Fab progress IT continuing and separating power quality our internal the far, new a has infrastructure the lab we've in reestablishing our for the proud a and and frame. capability slightly that assurance X. test process the the are September, reliability from accomplished thankful for we quarter ahead so what of of previous instead business,

Now look business, a close take continuing with at Display. let's the starting

During the strategic improve as completely LCD exited DDIC of we second and business quarter, our focus. part profitability to non-auto sharpen all efforts

QX. in a QX during If comparison, have first up had scheduled we QX we the performed from negatively our accelerated part revenue and change. $X impacted data, have global customers. this into XX% million relatively extended would of the an The was LCD apple-to-apple adjusted some half. well was recently smartphone as of about market XXXX. the due reported market we approximately point, above-market in our first smartphone launch first to we during Display the global X.X% from XX.X% As According for reference market half business non-auto revenue COVID-XX the QX. QX use been but year-over-year OLED business during down performance as of to market to half the compared our DDI the XXXX, But declined

revenue million, Our X.X% down DDIC was sequentially and QX year-over-year. $XX down OLED X.X%

four Let me our highlight Display for takeaways business. key

using total call half, makers expected the the May, XX the launch regarding first our launches. OLED XX new smartphone scheduled Firstly, smartphone bringing in first half. Actually, models were to to launch earnings we being we our of product in models On our launched, new XX in models launch in drivers QX. XX models QX said

manufacturing on design X won process. the regarding in X Secondly, wins, customer OLED DDIC wins new design we QX, XX-nanometer including based

notable reduction this XX-nanometer in family. product feature continue momentum Our growing design and strong in to consumption demonstrate power and chip size products

phones. in XG Thirdly, advanced regarding features

our product We line. full products all HD XXX are DDIC to capitalize for industry. plus support frame vital on positioned displays. well display to We hertz HFR the DDIC Faster smartphone plus date. displays full-featured time now booming we XXX hertz high and XG and OLED smartphones, X OLED the these are of response XG rate, QHD HFR launched expanding And to for is

XG revenue revenue the XXXX. about smartphone for Our from XX% half OLED first total accounted of in

automotive business to into Finally, the diversification, diversify applications. regarding we OLED continue

out our second quarter, our our first with makers, major expand wins to the alignment we OLED During product. panel for automotive strategic Leveraging design automotive we OLED plan taped displays.

lead QX of fluctuate, our quarterly products months. outlook ahead, excited our the Looking OLED OLED capability an products. outstripping revenue about our This remain upswing the while is market for long-term The because we may Recently, for and OLED for is X.X experienced time supply we to recent position. increase lead our in in demand insufficient standard time. unique in demand trend X

market which in presents us $XX annual growth. longer-term our support opportunity Now billion, let's X. a process, is approximately turn facility to Fab tremendous It the note is total main semiconductor X both R&D, to Power business. Fab our Fab centralized to today, The our X manufacturing was that power for and important

fab our of Foundry will business. and continue a will fivefold. X our to are Therefore, fab conducted all our for dedicated for the pending supporting seamlessly. to customers critical With Fab Currently, R&D now Power product be development transferring the equip we and plan at become to X of transaction, closing the power sizable production Power Fab process

of our business leadership a power strengthened recently power general veteran manager. also semiconductor XX-plus-year hiring as the We by

long-term of and an essential diversification business strategy. growth our part Power remains Our

up and by million, medium-voltage pent-up The sequentially year-over-year. e-motorcycles as XX% driven personal in of XX.X% strong let's from rebound experienced came China. recovery showed Now $XX.X business and in global signs our pandemic. the Power saw QX about demand increased QX. popularity some as from revenue talk our in Power a at MOSFET We e-bike China of down for products such the transportation, revenue

Power with line. momentum growth We are IC seeing our product

for Power serve the is smartphone notebook Our to IC applications. memory lineup are to of solid-state a IC PC Power at applications and our the global one in in a gaining expanding we and application company, addition drive TV traction

FET, we MB QX, win wide application. win product Junction and saw across IC a Power Battery design lines, During addressing of Super MOSFET activities range and design MOSFET,

We by growing design are in our pipeline encouraged business. Power a

Foundry Revenue up by highest the line on Turning sequentially driven related XX% was the surge recorded revenue pandemic. up the products million, XX% and result Services $XX.X to for Group, Services work-from-home the a demand of the year-over-year was IPO. as revenue Group in X-inch COVID-XX since Foundry

business our products display to and company transform The power pure-play a Foundry attractive the about markets. X on talk streamlined, Fab focused allows strategic into transition. us let's sale of Now and

we resetting by that goal fundamentally While are share to can't business our we be conditions, key achieve immune risk And the of macroeconomic targeting goal. like you to XXXX. our I'd to we with are

First, growth. profitable revenue

smartphone global of adoption ride Display, by proliferation panels the as OLED OLED we applications. of For well makers new as the on continued will

will we the automotive penetrating Power, as segments high products such new and premium market. growth on For focus

right the CAGR inorganic consider existing double-digit are While accretive we that to to from we if in EPS XXXX. We also at opportunity financial improve grow businesses, plan synergistic our XXXX performance options presents itself. and growth may strategic a

margin business. LCD margin; for gross exited Second, Display, the low non-auto we

as will products We this capitalize launch in emerging Display on applications. we new

For a mix. drive to XX% product all our few in plan Fab more Power, above premium center, favorable margin through we X gross will a our increasing manufacturing years. we Considering in combination leveraging of output R&D and foundry a external also consistently services, -- product reestablishing this, achieve

are operations the make Third, to unwind. carrying some costs, time expenses; currently operating stranded some continuing which

our will streamlined we will a operating initiatives and these to bring rightsize exercise a improvement As Collectively, standard discipline. company, OpEx financial product significant income.

$XX expenses, income goal last of substantially we largely to is the reach during of standard of level and XX% annual should to be product which our benefit net freed As will income. operating the our end then approximately improve of I interest continue mentioned first earnings quarter business adjusted first call, in By thereafter. to XXXX, million a

goals We to profitable new stopping we we some in towards share transaction closes, benefits milestones Once Today, share pending These the financial more the be continuous you of our with important are are financial will MagnaChip. able metrics. not growth. journey here.

accelerating We sale. In to the will better-than-expected financial business Analyst and to the while we we an there. of schedule strategic future present Day summary, how pending delivered results in the get illustrate closing Foundry also plan host initiative

execution remain successful profitable this And as emerge to challenging industry business foundation and improves, strengthen stronger through We for time. well to positioned market environment capitalize we We close a on and deliver the navigate our will trends. will continue attractive our growth.

Woo Q&A. Now over call back Dr. for come to will I and the turn

Young-Soo Woo

to drive everyone. and to forward and over engaging YJ, to join meet our its phone. a and transformation MagnaChip great to shareholders. the hello, and you, very look nice key I I'm with excited with Thank team, honored you It's

review, from to business improvement XX.X% Display the of revenue in Non-GAAP from of in the continuing the X to Display Foundry continuing LCD due XXXX Foundry sequential the the sequential QX primarily and year was for from sequentially and operations, quarter-over-quarter Power of attributable high impacted the QX ago. the exceeded was was the million guidance down which revenue Power DDIC investors a revenue operations offset Services business, smartphone year-over-year down market. decline segregating Before business the I with year-over-year. and up I go The operations above-mentioned discontinued was non-auto revenue non-auto and improvement COVID-XX the from our reiterate exit $XXX.X the decline the better and that our global to due understanding would Display we QX exit business that Both negatively and from up solid was X.X% of market. result. quarter Revenue down business. revenue to and The $X.X It XX.X% XX.X% X was which a million, rebound strategic core in China accounted the the Fab business. operations business up X.X% year-over-year. financial was end and with QX a was $XXX transitional like QX transition continuing range. the down in provide $XX.X combined which Fab in XX% revenue part sequential million from of to QX same believe million, QX $X.X without due the into quarter-over-quarter a in attributable discontinued XXXX. Power Services decline QX $XX.X million, year the in which in increased was both The ago, flattish of the in LCD XX.X% was also in to million,

and points you Therefore, QX remind gross Services effective classified was from benefited and from was Before from improved in gross profit X.X from product fab I all held XX, business profit quarter improved from utilization. was from fab and improvement transitional that for product amortization a continuing The like margin up percentage treatment continued in when continuing those labeled to XX.X%, to QX percentage the sequential above-mentioned are is the total the higher combined increase discontinued operations go Gross a and of by March higher of X.X percentage attributable in to during depreciation range. combined as margin gross profit in a stops. as also Foundry second detail, points profit guidance up ago, this the the with assets gross year-over-year to points from primarily gross non-GAAP those million same of sale, related held sale $X X.X percentage QX utilization. ago. exceeded to due accounting and primarily corresponding to $X.X up into result QX margin reserve million legacy sequentially treatment operations accounting the in and discontinued GAAP margin was end QX for year XXXX. our I assets product in high Gross of would mix Display quarter. assets QX was classified XX.X%, relating Non-GAAP the X was profit operations the and as X.X that benefited Fab The approximately profit recorded and without from which a XXXX. points up year QX It our margin operations mix

XX.X% XXXX quarter compared million Turning million $XX.X compensation charges. in million operations as $XX.X Fab $XX.X in million in stock-based same from $XX.X of $XX.X in $X.X million to continuing million QX revenue in include in income in of million share year QX $XX.X $X.X XXXX were and without XX.X% from up million a a QX the million was from from now from in and EBITDA SG&A XXXX in the as $X.X per expenses as EPS, per the year. operating $XX.X share million loss basis, last a million and QX, $XX.X QX our from X Adjusted from compared operating QX XXXX. or operating and Adjusted QX a to QX to $X.X of operating earnings in a was million, from R&D in ago. was QX QX ago. XXXX. services GAAP expenses compared in operations QX the $XX.X of QX loss up QX $X.XX, in operations to a $XX.X transitional in million operations million million QX Foundry or in in QX and on up per $X.XX QX $XX from up ago. continuing from continuing was expense XX.X% QX $XX.X up and continuing or operations for from $X.XX year share were up year continuing million,

$X.XX, between the Our from foreign from was operations year. from of up net million. and noncash $X.XX non-GAAP $X.XX QX non-GAAP up $X.X and in EPS GAAP QX difference currency of QX The the was diluted continuing our last to due gain in in primarily EPS elimination

$XXX.X million. operations, sheet at of end the was QX. cash the moving This the continuing $XXX.X million Now compares balance the to of to

in payments third fifth from million $XXX.X be and million receivable recall, the of net represented the of the account customers. The of strengthen balance generated certain quarter receivable the estimated to the transaction flow. our operating QX. timing cash payments to down QX cash of the net $XX attributable of exposure was year. flow As proceed and sheet. in from tax positive transaction-related delever first to The Account transaction. of from operating the in interest quarters up XX% net consecutive was is decrease the We XX% to Once cash QX. intend in we occur closes, pending you This

from were customer increase up meet XX.X% anticipated QX Our for to in for day was due primarily an XX days. product. sales standard demand Inventories our QX outstanding

the in Our QX. inventory average was in QX to days $X.X as was for CapEx million million $X.X QX XX in days. compared

Let me our plan. details CapEx on give you more

we moving For unusual XXXX, have some parts.

both We support with discontinued operations necessary the investment. will continuing and

support R&D lastly, in and the OLED reestablish the and expect a CapEx With of new the a to XXXX for And YJ $XX establishing to start test and sale. process the QRA in infrastructure X, investment also This we IT require as a will are continuing $XX systems million. around total mentioned development of be after the centers, build separating business IT relocate we addition, onetime million. will to we process In lab the Fab the that, earlier.

and revenue equipped special XXXX, For X. $XX to complete us plan project have to years. the a to CapEx be equate XXXX. investment, Fab critical Fab that, Once that the XXXX the pursue to than dedicated around X our to we total which from of support for flattish-y Power the to is With product. capability. of assume a This reestablishment period We completed, growing million, the potential X R&D anticipated be demand will for our will estimated to a allow seamlessly payback less is

Now Fab moving minutes. our in July XXth, experienced temporary power and X XX Korea to South the QX guidance, hours for X on approximately facility outage a Kumi,

The in caused We an as continuing our process trade pandemic negligible. $X.X The cost and nearly accident with to up fully total evolving to revenue escalated situations approximately operations related is reduced COVID-XX wafers visibility. our Fab to X estimated today. tension global of impact of working our full to facility million. operational the The expected are rapidly had of from our damage be

the $XXX $XX transitional While actual to results We range range from power non-auto continuing in have XX%. range DDIC the $XXX to to With wanted impact, Foundry XX% million you exited gross LCD of million, cost. we and revenue operations XX%. $X.X at would business remind to to including estimated operations vary, that Fab in that, the turn from the the continuing for from in MagnaChip operations outage XXXX; over I of QX. continuing of will the margin of margin been currently be in million call the XX% anticipate Services Gross may So-Yeon. X Without QX be profit to to profit million

So-Yeon?

So-Yeon Jeong

Thank YJ and Young. you,

this concludes our remarks, operator, and questions. the now So for open prepared call we'll

Operator

Please & Your from line question comes Gill Needham the Company. go Instructions] from first [Operator Raji ahead.

Rajvindra Gill

Thanks for on very in volatility helpful. a the the the all business. on OLED despite industry. details. momentum good congrats YJ, question They're And the

how kind You half? kind second launches to the in times. you wondering do up inefficient new are of terms market think, if be what's shaping you lead regarding I OLED. see There's could talked in many on capacity I going smartphone of further And happening. elaborate was to about, of that the meet product

wanted get at I affect to in Thank the smartphone second So your OLED that you. how of a the you're looking business. sense how could half business and

Young-Joon Kim

Thank you, sir.

asked questions I'll one couple he there, So to so one. answer a of try by

are as but the to time you X the into go -- just yes, testing. seeing the it's about then out or lead not So to from start test the wafer OLED, months a XX-inch, recently. uptick the back-end -- And months the on standard assembly XX-inch time we lead X.X wafer takes know, to

So to months' frame. X time X.X that's about

say, you in that uptick additional let's we to have if inventory X to months. than we then So that we have have, don't get demand X.X some go through

that So demand the -- now, right it's our outstripping supply fortunate capability. a thing the is

continue to address So we'll that.

a it's thing. think good I

facing the market, terms global again, for of pandemic On the second, the smartphone in COVID-XX, are still. we visibility still

So is the murky. outlook

the supply now, quarter, current current I recently, will -- earnings. is then the be the talk our different. at for the the situation our vendor as quarter first for outstripping said for However, right But is and situation. think demand the I about that But next every will we

Rajvindra Gill

the and in The was percent, XXXX, about the into and big going QX. do going think in But quite do look year? the correction some then quarters three into kind the second Power last of going And Power Okay. quarter. business Power XX-odd as the against the in you're strong up of there But tough we China back third business how half rebound grew compares well? inventory the that of we half in a of the significantly at how growth about sequential on

Young-Joon Kim

Yes.

question. very So good

a So I Power general. see well, as in in strong demand

in momentum the see So we market. the there

but I as feel is generated that again, give you the being the about can't So X-month good I a Power demand well. on forecast,

-- line between the this $XXX those So third guiding product quarter we but OLED, combined, to are on for million million for $XXX quarter.

Rajvindra Gill

of if and $XXX $X I the about if Display in I million, $XXX guidance, was the which out both of last but million strip down about services was at and at about So the look your about for so million. from and transitional QX $XXX sequential Power year, quarter -- it's increase midpoint million third

the So COVID-XX say, impacting third is I'm the smartphone primarily in global you -- would quarter smartphone decline. display the decline trying to, and the just power? related understand year-over-year to year-over-year

Young-Joon Kim

Yes.

-- whole faces the this think know the you slowdown, a I industry as year, the So semiconductor.

the have half first year we year-over-year the So we very OLED. optimistic. showed -- we're despite the on But in declined the I When think to on half, the results to market relatively -- remain pandemic showing that's it's think good pandemic, second global But last grew the the what But smartphone the due the incremental time, general, in quarter. good from we been. XX.X% half. think uncertain second But there. first same XX% in year, I visibility I this at

Rajvindra Gill

get margins, question in of gross And the back in me just queue. terms last and for the I'll

a there's -- that because gross outage. margins power of in drop the So

be XQ. it said higher. it I think, still, You would below it's would have But been what in

without $XX.X mean of I'm so a in too talked get a did -- a want above kind level. in just years. few of the already to are much understand at products a on drivers standard I if the quarter, look normalized million And margins I to XX% specifics, this then giving achieving you years? few you in Wondering margin about what that. And gross XX%

and you're if at close kind the on XQ, aside with going XX% XQ, happened what you're the products. standard power to looking the already in outage I'm mean there it of I almost So putting to

thinking of that. just going you're So to want and how get underneath about what's of kind -- XX% what's a sense

Young-Joon Kim

Yes.

of So again, asked questions. couple you a

let clarify one by me -- one. So let's

QX, gross was if margin continuous service. the our transitional look the you XX% includes the that at operation, on So

look if puts first XX% to QX, try be margin let me the On power would answer. your to So clarify. from which really our answer at that's upward is gross earnings the XX%, outage, question, without that release, trend you XX%, we To at it okay? for said, XX%, the to the which in good between

we sustainable are looking improvement. for margin gross So

If you look really our then we at past history, and fluctuate. have we good quarter,

to Our really sustainable margin XX%. goal gross above is get

how So it Fab as reestablish going that We'll process opportunity to is itself. in if goal. the do business, consider to our manufacturing portfolio, pipeline investment up going And we in disciplined R&D accretive, existing we're that? a do and will well attractive technology X, markets attractive any presents as inorganic and power synergistic, also

consider adjusted we we'll is that's and as option operating your -- all that's profit answers growth or shoot above And So a in that sustainable I XX%. will that our and hope then And XX% first, we're thereafter is move goal. before, income, what EPS. question. available the being said to for we'll about accretive upwards. talking accelerate I and And

Rajvindra Gill

at Okay, great. operations. and I'm release, Power do saying then is press it for Yes, looking products assuming for gross to and says Because standard margin and margin. want I was is Foundry clarify I'm continuing gross and profit XX.X% XX.X%, the which on Display profit XX% the you're just

for operations? continuing transitional the difference what's that confused just the that for Is products? from I'm XX% at What's is the products. standard standard And in XX.X% between different that services? why So

Young-Joon Kim

why $XX you million zero the sum That's those transitional up, margin. XX% in service when that is cost, zero at QX. The Yes. becomes at

Rajvindra Gill

did Okay. collectively. But Power, in and you XX.X% Display

Young-Joon Kim

That's right. That's right.

Rajvindra Gill

Okay. Great.

going that and you my did So question and you're going to in you're -- XX.X%. be forward, standard was that power business

Young-Joon Kim

next service have We're years. going the transitional to X for

Rajvindra Gill

be could No, I But understand that out. that. netted

you it. Thank Okay. All so right. much. got I

Young-Joon Kim

Thank you.

Operator

next Capital. comes ROTH question Desilva Suji from Your the of line from

Your line is open.

Suji Desilva

Hello role YJ the good Dr. new and here. Woo, hello in luck

YJ, OLED demand, those? arrangement? Foundry terms will supply side your the in is the you given these anything address to can the the of versus Or there do from under-shipping of persist So customer

Young-Joon Kim

quickly. multiple time, you really that capacity to have lead a we Foundries. we in enough right? demand, just between when act It's So think I uptick have have

But And so problem that's what it's about. this good have. is to a

of forecast So, as has because think been I not pandemic, people's the accurate.

when better takes So that's we can uptick, I have happening. it we what's results. much to that our -- so to adjust, and we're think And best deliver doing time

Suji Desilva

Understood.

few. So the size programs to delays any a won second Are you they or Or half? progressing foundries. of the And the the challenge are is sending either won, then order right those pull-ins you've smartphone, to in targets seeing you've quite all programs? the the the

Young-Joon Kim

up runs bats. I realize And So, to hit important really over so overall, like design also, momentum or could market. win some many it's think launch, be makers our and are the successful product product XX, wins when portfolio we design cumulative each that home in it's the or But to we and smartphone seeing win. being in the

and line. more winning, control, our product trend that keep and pipeline there's product more is the but launches we our I that's outside think So on

it. we we're about and good also -- So expanding And feel into automotive.

in this and year. out. the again, automotive revenue see not will until OLED, we the into and well automotive, more the diversifying, we premium line Obviously, First, more in of going you're you But their to next higher taped as see going are product future. are

Suji Desilva

the going segment. help in transitioned I margins product And the products Okay. Power segment. I XX% then if percent gross presume for plus that's as question sustain the last don't And premium know to you've the how ability premium kind on the that you've at margins provided on Power grow, products X increases. sustained trend? these the What's Fab then higher is levels? And Or to of mix does the over? be and the premium it utilization Power depend

Young-Joon Kim

quarters, product our premium say, I was would around last, line So recently, four XX%.

product the road portfolio. to margin needed to and map. Woo Dr. today having is product strengthen increase competitive more premium the will laid that follow, well So that continue in goal out our as is appropriate portfolio, as line Obviously, our product to improvement CapEx

So a I will think better to all to lead that improvement that margin follow.

Suji Desilva

Okay. Thanks guys.

Operator

And your the Atif from from line next Malik comes Citi. question of

Atif Malik

you interesting questions couple YJ, I and a have you gave numbers, Thank my on taking for of Hi. questions. them.

shifts are next to smartphones share the and XG Also, sales. interesting smartphone with does months? And the the India. China are Korean There about Huawei say, to happening one, grows, of better you XX% share. first positioned makers curious, take -- this the let's and I'm over in situation China issues XX are percentage happening with said XX how there your OLED The

pace I'm your next, of mix So at that XX higher industry to to accelerate XX XG does this XX% you over currently the months? smartphones trying have just say, understand, number the let's from a than

Young-Joon Kim

Thank question. good you. very a It's

about So smartphone if did obviously, they you about this half. XX% we is look of XG at in I year. market estimate think And XX% research, first

than not but it's still whole the doing slightly up, better market far market. the for research said what too we're So

forward, I is happening one to and screen is potentially of be will yes, think, that there the in XXX Going for XG up XXX-hertz XGs. QHD+. features key And more

driving the I the applications. some that have habits launched So is key IoT XG. to and products the word which becomes well also that continuing for smartphone more you users. the new feature as said, pandemic, allow feature of as a the the games, HFR as also as we we reality And is have capability of to and And is other autonomous XG and the important changing X we that also HFR that do the we with think, grow virtual

OLED, continue LCD. consumes because will less capability you better VR refresh like XG XXX-hertz one for features think AR, want XX% OLED with use I than OLED cycle A, you And the So on gaming. And of this and key about is, to grow. XG have to screen to the

that's So our view.

Atif Malik

product products that number rate my mentioned and And interest annual premium or XXXX you double-digit compounded XXXX. Great. was second the in over standard growth the Power this caught the

drive. after Power about this to design over going solid-state the end color you IC double-digit few years? win give on Can the market to a next you're that the get with more growth talked You

Young-Joon Kim

Yes.

goal to our Display. is -- So it's grow in all line, our across double-digit Power whether or

the explained TV state. won around we IC more we the major application was Power new Power, Traditionally, -- our On solid application. that hovered in a

Now we're expanding into the solid-state drive.

-- the other to expanding IT also are some We segments.

premium the segment so our portfolio the So different in later help computing product to Power from we TV to and industrial and Power IC more to diversifying segment forth line our are with potentially and business. consumer-centric

Atif Malik

Great. Thank you.

Operator

no And I'm other time. this at showing questions

So-Yeon Jeong

This details MagnaChip's Relations conference you. Thank future you look joining second on events today. for us XXXX Thank Goodbye. earnings website. concludes call. Please our our for of Okay. quarter Investor

Magnachip Semiconductor (MX) 2 Aug 202020 Q2 Earnings call transcript