‘Media Tech Day’ held in Magok, Seoul Expanded use of three high-value-added semiconductor substrates Accelerating entry into data centers, robotics, satellites, and more “Package solution performance to grow eightfold within five years”
LG Innotek has set a target of increasing the operating profit of its Package Solution Business Division, which is in charge of semiconductor substrates, to KRW 1 trillion by 2031. The company also stated that it aims to raise its total operating profit to KRW 2 trillion over the same period, achieving what it calls “2-jotek” (KRW 2 trillion in operating profit + LG Innotek).
LG Innotek announced at its “Media Tech Day” event held on the 16th at its Magok headquarters in Gangseo-gu, Seoul, that it “plans to expand its market share in the newly emerging semiconductor substrate market and grow the Package Solution Business Division’s operating profit to the KRW 1 trillion level by 2031.” The division’s operating profit last year was KRW 128.9 billion. This represents an ambition to expand performance to nearly eight times its current level within five years.
LG Innotek’s flip-chip ball grid array (FC-BGA) substrate. Provided by LG Innotek
To this end, LG Innotek stated that it will expand its business, which has previously focused on mobile products, into areas such as artificial intelligence (AI) data centers, autonomous driving, robotics, and satellites. A key initiative is to broaden the applications of three types of high value-added semiconductor substrates: “radio frequency system-in-package (RF-SiP),” “flip-chip chip-scale package (FC-CSP),” and “flip-chip ball grid array (FC-BGA).”
RF-SiP, which has mainly been used in chipsets for smartphone communications, has recently seen its use expand to communication in wearable devices such as smart glasses and to chip substrates for power management in AI accelerators. FC-CSP has been used as a substrate for smartphone application processors (APs), but is expected to be widely adopted for AI server memory going forward.
FC-BGA is considered the key product that will drive growth in the substrate business in the AI era. It is broadly used in core AI infrastructure, including AI accelerators and graphics processing units (GPUs) and central processing units (CPUs) for AI servers. Its area is more than 18 times larger than that of PC substrates, and it requires stacking dozens of layers, meaning that only a small number of companies can meet the quality and yield levels demanded by big tech customers. Although LG Innotek is a latecomer in the FC-BGA segment, it is rapidly securing technological competitiveness based on nearly 50 years of experience in the substrate business.
As the AI market has recently shifted toward inference-centric workloads, demand for CPU substrates is also expanding rapidly. In response, LG Innotek is increasing its production capacity, including through expansion of its plant in Haiphong, Vietnam.
Cho Jitae, Executive Director and Head of the Package Solution Business Division at LG Innotek, said, “Within the division, there is even a vision to create ‘2-jotek’ during this period.” LG Innotek’s current operating profit is around KRW 600 billion, and the company aims to increase the semiconductor substrate business’s operating profit to KRW 1 trillion going forward, thereby achieving total operating profit of KRW 2 trillion at the company level.
Park Jong-min
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
ⓒ dongA.com. All rights reserved. Reproduction, redistribution, or use for AI training prohibited.
