07:37 AM EDT, 03/12/2025 (MT Newswires) -- Magnachip (MX) said Wednesday it plans to divest its display operations and concentrate solely on its power business, aiming to complete the transition by the end of Q2.

The company said it is weighing multiple possibilities for the display division, including a potential sale, joint venture, or closure, and will report it as discontinued operations in Q1 results.

In 2024, revenue from the power segment climbed 13% to $185 million, with Magnachip projecting modest growth in the mid-to-high single digits for the full year.

As part of the shift, the company plans to launch over 40 new Power products this year and spend $65 million to $70 million over three years to upgrade its Gumi facility.

Magnachip added it secured a $26.5 million loan, backed by existing assets, to support the equipment investment, with repayments scheduled over a decade.

The company's shares were up almost 1.5% in recent Wednesday premarket activity.