Magnachip Semiconductor : Investor Presentation - January 2022

Magnachip Semiconductor (NYSE: MX)

MX 3.0: Accelerating Profitable Growth

January 2022

Forward-Looking Statement

Information in this presentation regarding Magnachip's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future operating results and financial performance, business strategies, outlook and plans, including fourth quarter 2020 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the impact of the COVID-19 pandemic and escalated trade tensions on Magnachip's fourth quarter 2020 and future operating results, and the timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this presentation and the accompanying press release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance, and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others and without limitation, uncertainties related to the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to the COVID-19 outbreak, recessions, economic instability and the outbreak of disease; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity or supply constraints; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us and our distributors; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip's products, including uncertainties regarding the impacts of the COVID-19 pandemic that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip's products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip's filings with the SEC, including our Form 10-K filed on March 9, 2021 (including that the impact of the COVID-19 pandemic, trade tensions and supply constraints may also exacerbate the risks discussed therein) and subsequent registration statements, amendments or other reports that we may file from time to time with the Securities and Exchange Commission and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward- looking statements provided, whether as a result of new information, future events or otherwise.

Information in this presentation does not take into effect the potential impact of the COVID-19 pandemic on Magnachip's business operations, financial condition, plans, opportunities, expectations and future results due to the uncertainty regarding the magnitude, duration and global reach of the situation. This presentation also includes references to certain non-GAAP financial measures. Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting Magnachip's business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this presentation.

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Ⅰ . Q1-Q3 2021 Business Update

Display Market Trends

OLED DDIC SAM

($M)

5,934
174		Smart Watch
243	25	OLED TV
+39.0%		Automotive

	2,210	5,241	Smartphone
76
84	4
	1,959

2020

2023

(Source: OMDIA, Oct.'21)

Market Update

• Severe wafer supply shortage is expected to continue through 2022 and set to last till 2023 for certain chips.
• Wafer supply constraints affect DDIC prices increase.
• OLED penetration is expected to have increased from 32% in 2020 to 38% in 2021.

Core Competencies

• Pioneered in 28nm OLED drivers with best power consumption and size in industry
• Favorable market trends: 5G, OLED TV, OLED automotive & emerging new technologies
• Strategic alignment with top-tier panel makers in the world

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Display Business Update: Demand Creation

OLED Smartphones

OLED TV

OLED Automotive

MicroLED

• Amidst severe wafer shortage, we carefully focused on 9 design activities with high volume and high margin. Total 41 cumulative design-wins at the end of Q3
• Expanding customer base to include top-tier panel maker outside Korea; initial revenue to start later part of 2022
• Under qualification process with a major Korean TV OEM; Initial production commenced in Q4 2021
• Next generation OLED DDIC displays featuring all-in-one solution
• Secured 2 design wins with premium European auto makers for center stack display and instrument cluster display; Initial mass production scheduled for 1H of 2023 based on our customer's current plan
• For very large next generation high-end TVs that offer the potential for high luminance, fast response time, excellent contrast ratio and long product lifetimes; Expect an imminent launch in 2022

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