Navitas takes $5M stake in Magnachip to build next-gen power chips

What's the deal? Navitas Semiconductor has agreed to a $5 million strategic equity investment in Magnachip SemiconductorDealroom has a profile for this one. Try Dealroom → (NYSE: MX), a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions. Magnachip will issue and sell 1,461,988 shares of common stock at $3.42 each, with the deal expected to close on or about September 24, 2026.

Why now? The investment builds on a partnership the two firms announced in July 2026 to accelerate adoption of silicon carbide (SiC) technologies in high-voltage and ultra-high-voltage power markets.

What's the endgame? Under that partnership, Magnachip is licensing Navitas' GeneSiC Trench-Assisted Planar technology, covering 1,200 V, 2,300 V, 3,300 V and higher-voltage applications. It also gains access to Navitas' SiC supply chain, with plans to port, qualify and internalise the technology at its fabrication facility in South Korea. The companies are initially targeting energy and grid infrastructure, energy storage, industrial electrification, and automotive systems.

Magnachip chief executive officer Chae Lee said the investment "represents an important next step in our strategic partnership." He added the tie-up could create "a new generation of differentiated power solutions that address emerging customer needs."

Navitas president and chief executive officer Chris Allexandre said the deal "reflects our confidence in the relationship and the value we believe the two companies can create together in the years ahead."

The signal: The stake deepens an existing licensing arrangement into shared ownership, aligning both firms as they chase demand for high-voltage power components across grids, storage, and electrification — a bet that combining silicon carbide with silicon power technologies opens markets underserved today.

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