The ratings on Korea-based nonmemory chipmaker MagnaChip Semiconductor Corp. (MagnaChip; B+/Stable/--) reflect its exposure to the highly competitive and fragmented market for nonmemory semiconductors, volatility in the semiconductor industry, and the company's concentrated customer network. At the same time, good relationships with customers, modest diversification of its business, and lack of near-term debt maturities support the ratings. Standard&Poor's Ratings Services views MagnaChip's business risk profile as "weak," reflecting potential variability in its operating performance. The company faces intense competition and a fragmented market, and the highly cyclical conditions of the semiconductor industry inevitably affect MagnaChip's operating performance. Also, the company's customer network is somewhat concentrated, with its 10 largest customers generating about 60% of total sales. However, in
