Property, Plant and Equipment

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

4. Property, Plant and Equipment

Property, plant and equipment as of March 31, 2025 and December 31, 2024 are comprised of the following (in thousands):


	March 31, 2025			December 31, 2024
Buildings and related structures	$	21,925		$	21,873
Machinery and equipment		127,341			126,971
Finance lease right-of-use assets		608			606
Others		33,454			33,274

		183,328			182,724
Less: accumulated depreciation		(118,685	)		(115,236	)
Land		11,264			11,237
Construction in progress		4,382			2,738

Property, plant and equipment, net	$	80,289		$	81,463

Aggregate depreciation expenses associated with our continuing operations totaled $3,191 thousand and $3,655 thousand for the three months ended March 31, 2025 and 2024, respectively.

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 located in Gumi, Korea.

See “Note 11. Long-Term Borrowing” to these consolidated financial statements below for more information regarding the Loan Agreement.