LG Innotek Targets USD 647 million in Package Solution Operating Profit by 2031

About this update from Lg Electronics Inc.

SEOUL, South Korea, June 30, 2026 /PRNewswire/ -- LG Innotek, renowned for its optical solution business and leadership in high-performance camera modules, is quickly establishing itself as a key player in package solutions, including high-value-added semiconductor substrates. Backed by a combination of structural growth drivers—including the rollout of 5G networks, trend toward higher-performing components in premium smartphones, ongoing recovery of the memory market, and rapid expansion of AI and big data applications—the increase in global demand for high-value-added semiconductor substrate products is accelerating. To respond to these technology trends, LG Innotek has built a high-value-added semiconductor substrate portfolio that includes RF-SiP (radio frequency system-in-package), FC-CSP (flip chip chip-scale package), and FC-BGA (flip chip ball grid array) products. Reflecting this dramatic increase in semiconductor substrate demand, LG Innotek's package solution business recorded sales of approximately USD 1.11 billion in 2025, up approximately 18% from approximately USD 0.94 billion in 2024. Over the same period, operating profit increased from approximately USD 46 million to approximately USD 83 million, representing growth of approximately 82%. Securities firms expect LG Innotek's package solution business to sustain its strong growth this year. Notably, the package solution business is a key profit driver. In 2025, it generated nearly 20% of LG Innotek's total operating profit, despite accounting for only about 10% of the company's total sales. Drawing on over 50 years of unrivaled substrate technology know-how, the company has markedly increased the added value of its semiconductor substrate products. LG Innotek anticipates that, on the back of its high-value-added semiconductor substrate products that deliver both profitability and growth, the contribution of the package solution business to operating income will rise to a level comparable with that of its optical solution business within the next five years. Jeffrey Cho, senior vice president of the Package Solution Business Unit, said at a recent Media Tech Day event held at LG Innotek's headquarters in Magok, Seoul, "LG Innotek has established itself as a first mover in the semiconductor substrate market by anticipating market changes ahead of customers, advancing its technologies, and dr...

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