The rating on Korea-based MagnaChip Semiconductor LLC reflects the company's extremely weak liquidity position, high leverage, and the volatile and competitive industry in which it participates. These factors are offset by the company's good customer relationships in the semiconductor manufacturing market and moderate diversity. MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products. The company's operations are divided into four main business units: Display Solutions, Imaging Solutions, Semiconductor Manufacturing Services, and Power Solutions. However, on Oct. 6, 2008, the company announced that it would begin winding down operations at its loss making Imaging Solutions business segment. The company faces intense competition and a fragmented market. In addition, MagnaChip's business is substantially affected by market conditions in
