Magnachip Rises 16% After Navitas $5M Investment
Magnachip shares jumped 16% Monday as Navitas agreed to a $5 million strategic equity stake in the power semiconductor firm.
Key points
- Navitas Semiconductor is investing $5 million in Magnachip via a purchase of 1.46 million shares at $3.42.
- Magnachip shares rose 16.36% to $3.44, with trading volume reaching 2.34 million shares, well above the 100-day average.
- The deal grants Magnachip access to Navitas’ silicon carbide technology for high-voltage applications in grid and automotive sectors.
Magnachip Semiconductor shares climbed 16.36% to $3.44 on Monday, a sharp move driven by a new capital injection from Navitas Semiconductor. Navitas agreed to purchase $5 million worth of equity, a transaction that signals a deepening of their existing technical alliance. The stock’s gain was amplified by a surge in trading volume, with 2.34 million shares changing hands against a 100-day average of approximately 864,745 shares.
The deal involves Magnachip issuing roughly 1.46 million common shares to Navitas at a price of $3.42 per share. According to Benzinga Pro, the transaction is expected to close around September 24, subject to standard closing conditions. This financial link reinforces the strategic partnership the two companies announced in July, which focuses on expanding the use of silicon carbide technology in demanding power applications.
Technology Licensing Accelerates
Under the agreement, Magnachip gains access to Navitas’ GeneSiC Trench-Assisted Planar technology for 1,200-volt, 2,300-volt, and 3,300-volt applications. The company plans to port, qualify, and internalize this technology at its South Korean fabrication facility. This move allows Magnachip to leverage Navitas’ silicon carbide supply chain and materials ecosystem, reducing reliance on external sources for high-voltage components.
Targeting High-Voltage Power Markets
Magnachip CEO Chae Lee stated that the investment supports the company’s entry into high-voltage and ultra-high-voltage markets. The combined expertise aims to develop new power solutions for energy grid infrastructure, energy storage, and industrial electrification. Automotive systems and other high-power applications are also primary targets for this joint technology push.
Strategic Alignment Confirmed
Navitas CEO Chris Allexandre described Magnachip as a critical strategic partner, noting the investment reflects confidence in the long-term collaboration. He emphasized that aligning the companies’ interests would facilitate broader technology and product development. The partnership is designed to create shared value through the integration of Navitas’ silicon carbide innovations with Magnachip’s manufacturing capabilities.
