Weak position in the global semiconductor industry with somewhat less-advanced technological capabilities. Modestly improving operating profitability due to steadily growing demand and cost-reduction efforts. Exposure to the cyclical semiconductor industry. Marginally positive free cash flow over the next one to two years, primarily owing to improving operating cash flow. High debt levels with highly leveraged credit metrics. The stable outlook reflects our expectation that MagnaChip Semiconductor Corp. will improve its operating cash flows over the next one to two years, albeit at a modest pace, mainly due to demand growth in its display solution products and foundry business. We may lower the ratings if MagnaChip's profitability deteriorates significantly, possibly due to a material weakening of its market position or key
