$344 million will be paid in cash and applied to reducing MagnaChip’s debt and strengthening its balance sheet.

The purchasing company, SPC, is owned by a project fund of which Alchemist Capital Partners and Credian Partners are general partners and SK Hynix and the Korean Federation of Community Credit Cooperatives are limited partners.

“It will allow us to meaningfully improve our balance sheet, and fully focus as a pure-play standard products company on the attractive high-growth opportunities in our Display Solutions and Power Solutions business lines,” says MagnaChip CEO Y.J.Kim, “we  look forward to building upon our leadership position in the OLED display driver business and are excited about the emerging MicroLED space. Our Power products portfolio, including Premium Power products, are aligned with the needs of a broad range of markets, and are ideally suited to serve the requirements of the Electric Vehicle segment of the auto market.”

The transaction includes MagnaChip’s Fab 4 which will be run by SPC. Upon the closing of the transaction, approximately 1,500 MagnaChip employees are expected to be transferred to  SPC, which would result in SPC assuming approximately $90 million in statutory severance liabilities recorded on MagnaChip’s balance sheet.

MagnaChip is the largest independent supplier of OLED display driver ICs (DDICs) to the world’s top two panel manufacturers for smartphones.

The company’s  portfolio of OLED DDICs includes multiple 28-nanometer display drivers with the industry’s lowest power, a key requirement for smartphones, including upcoming 5G and foldable models.

The Company’s Power Solutions business includes  battery field effect transistors (FETS) to increase power efficiency in smartphone batteries, as well as premium products such as super junction MOSFETs, IGBTs and PMICs for consumer, TV, communications and industrial applications.

The Company will continue to operate its Power Discrete 8″ fab (Fab 3, located in Gumi, Korea) used primarily to manufacture wafers for power standard products and non-OLED display products