LG Innotek eyes 1 tln-won operating profit in package solutions business by 2031

SEOUL, June 17 (Yonhap) -- LG Innotek Co., the electronic components arm of LG Group, said Wednesday it aims to significantly expand its package solutions business amid growing demand for semiconductor substrates driven by the artificial intelligence (AI) boom.

"Leveraging our differentiated technological capabilities, we will rapidly expand our market share in the emerging semiconductor substrate market and foster the package solutions business into a business generating 1 trillion won (US$660 million) in operating profit by 2031," Cho Ji-tae, executive vice president and head of LG Innotek's package solution business unit, told reporters.

The company's package solutions business posted revenue of 1.72 trillion won in 2025, while operating profit surged 82 percent from a year earlier to 128.9 billion won.

LG Innotek also unveiled three semiconductor substrate products that it said offer both strong profitability and growth potential.

One of the products is FC-BGA (Flip Chip Ball Grid Array), a high-performance semiconductor package substrate designed for large-scale computing systems.

FC-BGA substrates connect chips to printed circuit boards and are widely used in AI accelerators, central processing units (CPUs) and graphics processing units (GPUs).

According to industry data provided by LG Innotek, the global FC-BGA substrate market is projected to grow at an annual rate of 10.6 percent, expanding from US$5.42 billion in 2025 to $9.55 billion by 2032.

"We will continue to develop FC-BGA substrates that can be applied across a wide range of fields, including edge computing and defense, while actively pursuing new customers among global big tech companies to make the FC-BGA business one of the company's core growth drivers," Cho said.

Cho Ji-tae, executive vice president and head of LG Innotek Co.'s package solution business unit, talks to reporters at the company's headquarters in Seoul on June 16, 2026 in this photo provided by the company, (PHOTO NOT FOR SALE) (Yonhap)