Magnachip Semiconductor (NYSE:MX) shares climbed 14% after the company announced a $5 million strategic equity investment from Navitas Semiconductor (NASDAQ:NVTS), strengthening an existing partnership focused on silicon carbide power semiconductor technology.
The investment follows a collaboration announced in July 2026 to accelerate the adoption of silicon carbide (SiC) technology in high-voltage and ultra-high-voltage applications.
The companies intend to combine Navitas’ technology and supply chain capabilities with Magnachip’s semiconductor manufacturing operations in South Korea.
Under a privately negotiated stock purchase agreement, Magnachip will issue and sell 1,461,988 common shares to Navitas at $3.42 per share.
The transaction is expected to close on or around 24 September 2026, subject to customary closing conditions.
The investment will provide Magnachip with additional capital while giving Navitas an equity interest in its strategic partner.
Chae Lee, chief executive officer of Magnachip, said:
“Navitas’ investment represents an important next step in our strategic partnership and demonstrates a shared commitment to the opportunities we are pursuing together.”
The investment builds on the companies’ July agreement, under which Magnachip is licensing Navitas’ GeneSiC Trench-Assisted Planar technology.
The licensing arrangement covers 1,200-volt, 2,300-volt and 3,300-volt devices, as well as higher-voltage applications.
Magnachip will also gain access to Navitas’ silicon carbide supply chain and materials ecosystem.
The company plans to transfer, qualify and integrate the licensed technology into its semiconductor fabrication facility in South Korea, with the aim of establishing internal manufacturing capabilities.
Silicon carbide semiconductors are used in power electronics applications requiring efficient operation at high voltages and temperatures.
The initial commercial focus will include energy and electricity grid infrastructure, energy storage, industrial electrification, automotive systems and other high-power applications.
The partnership could also support additional technology and product development beyond the existing GeneSiC licensing agreement.
Chris Allexandre, president and chief executive officer of Navitas, described Magnachip as an important strategic partner and said the investment reflected confidence in the relationship and the potential value of their collaboration.
The companies have not disclosed specific revenue targets or production timelines associated with the partnership.
The planned transaction remains subject to closing conditions, while the broader commercial opportunity will depend on technology qualification, manufacturing integration and customer adoption.
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Navitas Semiconductor stock price
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