Third Quarter 2018 and Recent Company Highlights

MagnaChip:

• Offered planar-type Hall-effect sensors for foundry customers. The Hall-effect sensor has been adopted by the market for an increasing number of applications, such as smartphone cameras for the closed-loop auto focus feature and for the auto iris function.
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• Hosted its annual Foundry Technology Symposium in Hsinchu, Taiwan on September 18^th, 2018. The Foundry Technology Symposium showcased MagnaChip's latest technology offerings and provide a wide-ranging overview of MagnaChip's manufacturing capabilities, specialty technologies, target applications and end-markets.
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• Announced it has begun the mass production of foundry products for ABOV Semiconductor ("ABOV") using MagnaChip's 0.13-micron eFlash process. ABOV has previously used MagnaChip's 0.18-micron eFlash process for volume production of various MCU (Microcontroller Units) products, and has begun migration to 0.13-micron eFlash process for its major products.
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• Announced it now offers a multi-channel Mini LED Driver for the rapidly growing digital signage market, leveraging the company's more than 10 years of experience with BLU LED drivers in the television set market. MagnaChip's new Mini LED Driver for digital signage is able to drive 36-channel LEDs concurrently, featuring high density, reduced energy consumption and more efficient product designs.
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• Announced it will hold a Foundry Technology Symposium at the Shangri-La Shenzhen, China, on November 27, 2018. After holding a successful Foundry Technology symposium in Shenzhen, China, in 2015, this second technology symposium is part of MagnaChip's global foundry targeted geographic strategy to increase MagnaChip's brand awareness in China.
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Fourth Quarter 2018 Business Outlook
For the fourth quarter of 2018, MagnaChip anticipates:

• Revenue in this seasonally soft quarter to be in the range of $174 million to $184 million, down sequentially about 13.1% at the mid-point of the projected range. The guidance for the fourth quarter compares with revenue of $206 million in the third quarter of 2018, and $174.6 million in the fourth quarter of 2017. The revenue guidance reflects an inventory correction from certain foundry customers, consistent with current macro trends.
• Gross profit margin to be in the range of 25% to 27%. This compares to 27.1% in the third quarter of 2018, and 28.3% in the fourth quarter of 2017.

Third Quarter 2018 Conference Call
The conference call will be webcast live today at 5 p.m. EDT and also will be available by dialing toll-free at 1-844 536-5472. International call-in participants can dial toll-free at 1-614-999-9318. The conference ID number is 2362749. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com.

A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056.  The access code is 2362749.

About MagnaChip Semiconductor Corporation
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company's Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with over 30 years of operating history, owns a portfolio of more than 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through, MagnaChip's website is not a part of, and is not incorporated into, this release.

Safe Harbor for Forward-Looking Statements
Information in this release 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. These statements include statements about our future operating and financial performance, including fourth quarter 2018 revenue and gross profit expectations. All forward-looking statements included in this release are based upon information available to MagnaChip as of the date of this 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 general economic conditions, 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, 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, and other risks detailed from time to time in MagnaChip's filings with the SEC, including our Form 10-K filed on February 22, 2018 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC 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.