[News] South Korea’s LX Semicon Sells More Than 60 Patents, Marking its Exits from SiC Market

South Korean chipmaker LX Semicon has announced the sale of its silicon carbide (SiC)-related patents, marking its formal exit from the SiC market.

According to disclosed information, the company is selling a portfolio of more than 60 patents covering SiC power semiconductor devices and epitaxial wafers. The expected sale price is less than KRW 1 billion.

The patents cover SiC metal-oxide-semiconductor field-effect transistor (MOSFET) technologies, including planar and trench-gate structures, termination and gate-pad designs, as well as epitaxial wafer technologies. The portfolio spans South Korea, the United States, China’s mainland, Europe, Japan, and Taiwan, with some patents remaining valid until 2045.

Market Slowdown and Strategic Shift Drive Exit

Why is LX Semicon exiting the SiC market now? Industry observers point first to changing market conditions.

Stagnant electric vehicle demand has slowed growth in the SiC market, dampening near-term return expectations for related businesses. LX Semicon had already downsized its SiC R&D team in 2024, foreshadowing the current patent sale.

A broader strategic shift has also played a role. Since Lee Yoon-tae took over as CEO in late 2023, the company has shifted its focus to core businesses and streamline its operations through asset disposals. Market headwinds and this strategic realignment have together accelerated its withdrawal from SiC.

Financial pressure has added urgency to the decision. LX Semicon’s annual revenue has declined for three consecutive years, falling from KRW 2.1193 trillion in 2022 to KRW 1.6391 trillion in 2025. In the first half of 2026, revenue dropped 7.6% year on year, while operating profit plunged 39%. Meanwhile, display driver ICs (DDIs) still account for more than 86% of the company’s total revenue, highlighting the limited progress of its diversification efforts.

Against this backdrop, sustaining R&D and market investment in SiC would place additional pressure on the company. A more pragmatic option is to sell the patents, recoup capital and focus resources on its core business.

Patent Sale Marks Final Stage of SiC Withdrawal

The latest transaction represents the final step in LX Semicon’s retreat from SiC. The company had previously liquidated its power device joint venture with Japan’s Sanken Electric, gradually winding down its related assets and operations.

The patents are being sold to a South Korean power semiconductor company, although specific transaction details have not been disclosed. With the transfer of these intellectual property assets, LX Semicon’s presence in the SiC market is set to draw to a close.

(Photo credit: LX Semicon)