323

Million KWh's

~1,200 registered patents (p. 2) in Magnachip’s portfolio

50.75%

Increase

$520 million (p. 52) in 2019 revenue

16.26%

Reduction

$80.4 million (p. 11) in sales revenue from organic LED in Q4 2020


The Path to Drawdown: Irrigation

Light-emitting diodes (LEDs) were initially invented in 1994 as high-brightness, high-efficiency light bulbs. LEDs work like solar panels in reverse, converting electrons to photons instead of the other way around. LEDs use 90% less energy than incandescent bulbs for the same amount of light, and half as much as compact fluorescents. While other lighting technologies convert energy into heat (and wasting most of it), LEDs turn 80% of energy into light. 

Environmental advantages of LED lighting are many. Its efficiency in converting energy into light, rather than heat, helps reduce electricity consumption and air-conditioning loads. For people without access to ample energy, LEDs can be powered with small solar cells and can replace expensive kerosene lamps and their noxious fumes and emissions. Where LEDs are installed in streetlights, they can save up to 70% of energy and significantly reduce maintenance costs.

Project Drawdown projects that if LED lighting becomes widely used in the residential and commercial lighting market, it can help avoid between 10.2-10.8 gigatons of CO2 emissions in residential, and between 5.9 - 6.7 gigatons in commercial buildings. To achieve this, the global market share of LEDs needs to scale rapidly:

  • In 2018, LEDs comprised 3% of the total commercial lighting market and 2% of the residential lighting market
  • By 2050, LEDs should account for 95% and 90% of the residential and commercial markets, respectively
  • That’s 12.82% CAGR for residential LED, and 11.21% CAGR for commercial LED lighting between 2018 - 2050.

About

Magnachip Semiconductor Corporation (stock ticker: MX) designs and manufactures analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (IoT) applications, consumer, industrial and automotive applications. They are headquartered in Luxembourg and sell their products through distributors across Asia and Europe.

MX's Role in Drawdown

Magnachip provides source and gate drivers (p. 3) and timing controllers. These products support a wide range of flat panel displays used in mobile communications, automotives, entertainment devices, notebook PCs, monitors and liquid crystal display, organic LEDs and LED televisions.

They also offer a number of power management semiconductor products, including LED drivers, with applications in a range of devices like TCs, smartphones, wearable devices, as well as LED lighting.

Combined, these two product lines account for over 90% of Magnachip’s total revenue.

MX: What We Like

We’ll update this section once Magnachip makes their sustainability information available.

MX: What We Want to See Improve

Disclose Sustainability Metrics


On their sustainability page, Magnachip claims to be “actively reducing greenhouse gas emissions and energy consumption.” But unfortunately they don’t back up this claim with evidence. We’d like to see Magnachip publish a sustainability report on an annual basis, in which they clearly report their direct and indirect GHG emissions as well as energy consumption by source.

Transition to Renewable Energy


Magnachip’s manufacturing takes place in a couple of facilities (p. 34) in Korea. We think that switching to renewable sources of energy - from an off-grid solar or wind farm, for example - wouldn’t be too difficult too expensive. This would allow Magnachip to cut direct emissions in a meaningful way.

Enhance Supplier Transparency


Magnachip’s supply chain (p. 30) is global, with suppliers, subcontractors and operations located primarily across Asia. We nudge Magnachip to disclose more information regarding their suppliers -- their location, how much of Magnachip’s purchases they account for, and most importantly, their GHG emissions.

Other LEDs Stocks in the Climate Index

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