MagnaChip Stocks Up 16.5% as Firm Announces Newly-developed Smartphone Screen

Magnachip Stocks

South Korean semiconductor manufacturing company MagnaChip (NYSE:MX) have announced the development of a new display driver for mobile phone screens. As a result, MagnaChip stocks have skyrocketed 16.5% today. 

The new driver works with OLED – or Organic Light Emitting Diode – screens typically used in most mobile phones. This is the screen type of choice for many mobile phones because it enables thinner displays with brighter colors, greater contrast and lower power consumption than many other screen types. MagnaChip claim to be the largest independent supplier of display drivers for such OLED screens.

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According to MagnaChip, the new driver will be well-suited to the next generation of mobile phone screens. It is reportedly capable of protecting against electric discharge and interference and improving color and brightness while featuring lower power consumption compared to the last driver that the firm released. The driver can also be used in a variety of screen configurations up to a wide aspect ratio of 21:9 and bezel-less, edge-type screens and more. 

YJ Kim, MagnaChip CEO, said of the new driver launch: “The launch of our third-generation 40nm mobile OLED DDIC will help usher in the next wave of OLED smartphones with superior screen features.” 

Investors seem to have reacted well to the news. Magnachip stocks have experienced what appears to be the sharpest rise since January, with prices increasing from $9.35 on Monday closing time to $10.90 at closing time today – Tuesday. This brings the firm’s market cap to $374.1 million USD. 

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This isn’t the only news which is likely to have stirred excitement. Yesterday, MagnaChip published their first quarter 2018 earnings report. The company reported earnings of $2.8 million and 4 cents per share. Revenue of $165.8 million was posted in the 1Q period, and for the second quarter expects this to rise to between $182 million and $188 million. Despite a promising earnings report, MagnaChip stock prices have fallen about 6 percent since the start of the year.

The firm is hosting a technology symposium at the Hilton Hotel in Santa Clara, California, on May 23rd. In addition to producing drivers for mobile phone screens, the firm also manufactures components for use in LCD televisions, tablets, digital cameras and more. 

Featured image: Electronics Weekly