SAN FRANCISCO — MagnaChip Semiconductor Corp. (MX.US) is re-engineering its product roadmap toward artificial intelligence infrastructure and high-voltage automotive systems, moving to buffer a persistent slowdown in its legacy power component business.

The chipmaker reported second-quarter 2026 revenue of $44.7 million, a 6.1% contraction from a year earlier. Despite the top-line erosion, gross margin came in at 19.3%, beating the company's own ceiling guidance of 19% on the back of a shifting, higher-value product mix.

Under Chief Executive Officer Chae Lee, who took the helm July 1, MagnaChip is leaning aggressively into next-generation power architectures. The company cemented a strategic partnership with Navitas Semiconductor in late July, designed to fast-track the adoption of ultra-high-voltage silicon carbide (SiC) technology for systems demanding 1200V to 3300V capacities.

The broader strategy hinges directly on the power-hungry AI server market. In June, the company rolled out its sixth-generation 600V super-junction MOSFETs, specifically engineered to manage the intense thermal and power loads characteristic of AI data centers and EV charging stations.

For the third quarter, management is projecting revenue between $41.5 million and $45.5 million, signaling that near-term headwinds remain intact. Yet, with its core Power Analog Solutions unit—which generated $40.6 million in Q2—increasingly realigned for the AI hardware buildout, the firm is betting on infrastructural demand to drive its next growth cycle.