Why Is Magnachip Semiconductor Stock Soaring Monday?

Magnachip Semiconductor Corp. (NYSE:MX) stock traded higher Monday after Navitas Semiconductor Corp. (NASDAQ:NVTS) agreed to make a $5 million strategic equity investment in the company, according to Benzinga Pro.

Trading activity was also elevated. About 2.34 million shares changed hands during the session, compared with Magnachip’s 100-day average volume of about 864,745 shares.

Under a privately negotiated stock purchase agreement, Magnachip will issue about 1.46 million common shares to Navitas at $3.42 per share. The transaction is expected to close on or around Sept. 24, subject to customary closing conditions.

Strategic Partnership Expands

The investment deepens a strategic partnership the companies announced in July. Magnachip and Navitas are working to accelerate the adoption of silicon carbide, or SiC, technology in high-voltage and ultra-high-voltage power markets.

Magnachip is licensing Navitas’ GeneSiC Trench-Assisted Planar technology for 1,200-volt, 2,300-volt and 3,300-volt applications, as well as higher-voltage uses.

The company will also gain access to Navitas’ SiC supply chain and materials ecosystem. Magnachip plans to port, qualify and internalize the technology at its fabrication facility in South Korea.

The companies are initially targeting energy and grid infrastructure, energy storage, industrial electrification, automotive and other high-power systems.

Magnachip Targets New Power Markets

Magnachip CEO Chae Lee said the investment could help accelerate the company’s entry into high-voltage and ultra-high-voltage markets.

He said combining Navitas’ SiC technology with Magnachip’s power semiconductor expertise and manufacturing capabilities could also support the development of new power solutions.

Navitas CEO Chris Allexandre said the investment further aligns the companies’ interests and could lead to broader technology and product collaboration.

“Magnachip is an important strategic partner for Navitas, and this investment reflects our confidence in the relationship and the value we believe the two companies can create together in the years ahead,” Allexandre said.

MX Price Action: MagnaChip Semiconductor shares were up 16.36% at $3.44 at the time of publication on Monday, according to Benzinga Pro data.

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