Weak position in the global semiconductor industry with less advanced technological capabilities than peers'. Modestly improving operating profit due to steadily growing demand for display solutions and foundry products, and cost cuts. Exposure to the cyclical semiconductor industry. Negative free cash flow over the next one to two years. High debt leverage. The stable outlook on MagnaChip Semiconductor Corp. reflects our expectation that the company will modestly improve its operating cash flows over the next one to two years, mainly due to growth in demand for display solutions and in the foundry business. We could lower the rating if MagnaChip's profitability deteriorates significantly, possibly due to a material weakening of its market position or key customer relationships, and we see
