v3.26.1
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, Plant and Equipment

4. Property, Plant and Equipment

Property, plant and equipment as of June 30, 2026 and December 31, 2025 are comprised of the following (in thousands):

 

 

June 30,
2026

 

 

December 31,
2025

 

Buildings and related structures

 

$

22,836

 

 

$

24,371

 

Machinery and equipment

 

 

126,367

 

 

 

137,024

 

Finance lease right-of-use assets

 

 

422

 

 

 

495

 

Others

 

 

25,948

 

 

 

32,342

 

 

 

175,573

 

 

 

194,232

 

Less: accumulated depreciation

 

 

(118,231

)

 

 

(128,171

)

Land

 

 

10,871

 

 

 

11,679

 

Construction in progress

 

 

24,030

 

 

 

22,464

 

Property, plant and equipment, net

 

$

92,243

 

 

$

100,204

 

 

Aggregate depreciation expenses associated with continuing operations totaled $5,540 thousand and $6,225 thousand for the six months ended June 30, 2026 and 2025, respectively.

Pledge Agreement

On March 26, 2024, Magnachip Semiconductor, Ltd., a Korean limited liability company (“MSK”) and indirect wholly owned subsidiary of the Company, executed a Standard Credit Agreement (together with its General Terms and Conditions, the “Loan Agreement”) with Korea Development Bank (“KDB”). In connection with the Loan Agreement, on March 26, 2024, MSK entered into a Kun-Pledge (Mortgage) Agreement (the “Pledge Agreement”) with KDB pursuant to which MSK pledged its real property and buildings located in Gumi, Korea in favor of KDB.

On December 16, 2024, MSK executed a Standard Credit Agreement (as amended) (together with its General Terms and Conditions, the “Equipment Financing Credit Agreement”) with KDB. In connection with the Equipment Financing Credit Agreement, on December 8, 2024, MSK amended the Kun-Pledge Agreement (the “Equipment Pledge Agreement”) with KDB, originally executed on or about March 26, 2024, to increase the maximum secured amount and to expand the scope of collateral to include certain machinery and equipment owned by MSK, which are located in its fabrication facility in Gumi, Korea.

See “Note 11. Borrowings” to these consolidated financial statements below for more information regarding the Loan Agreement and Equipment Financing Credit Agreement.