Six Sigma Blog: MagnaChip Launches Six Sigma Improvement Program

MagnaChip Launches Six Sigma Improvement Program

South Korea’s MagnaChip Semiconductor has launched a Six Sigma quality improvement program to streamline its processes. The Six Sigma program is aimed at strengthening its production, development, sales and marketing operations. MagnaChip had been considering a US IPO for a long time. Now it is planning to delay the stock offering until 2007. The company is expected to raise as much as $700 million for expansion and debt reduction by listing the company on the Nasdaq exchange during 2006.

The company has raised more than $1 billion in private debt during the past two years. MagnaChip had broken away from South Korea’s Hynix Semiconductor in 2005 in an $828 million buyout financed by Citigroup and Francisco Partners. It has moved its focus on its application processor business after quitting the DRAM founder business. It realized the need for an effective program to improve its quality and productivity. Hence, it has selected the Six Sigma program.