[Edaily Reporter SOYEON KIM ] LG Innotek posted strong financial results, with first-half revenue surpassing 10 trillion won for the first time. Second-quarter revenue exceeded 5 trillion won, setting a new all-time high, while operating profit surged 2,057.3% year-over-year to 245.8 billion won. LG Innotek achieved these record results thanks to strong demand for high-value-added artificial intelligence (AI) server semiconductor substrates, as well as robust demand for camera modules.

LG Innotek announced on the 27th that its consolidated operating profit for the second quarter of this year totaled 245.8 billion won, a 2,057.3% increase from the same period last year. Revenue rose 41% year-over-year to 5.5272 trillion won, marking the highest second-quarter figure in the company’s history. Revenue for the first half of the year, including first-quarter results, reached 11.0621 trillion won, marking the first time the company has surpassed 10 trillion won in first-half revenue. These second-quarter results exceeded market expectations (182.3 billion won) by 34.8%.

Demand for AI components is behind these surprising results. Despite it being a traditional off-season, demand for mobile camera modules remained robust, and demand for high-value-added semiconductor substrates for AI servers is growing significantly. A company official explained, “Demand for mobile camera modules has continued, and strong supply of high-value-added semiconductor substrates—such as RF-SiP (Radio Frequency System-in-Package), FC-CSP (Flip Chip-Chip Scale Package), and FC-BGA (Flip Chip Ball Grid Array)—has persisted.” The spokesperson added, “Mobility components, such as automotive cameras, communications, and lighting modules, also contributed to the sales growth.”

The Optical Solutions Business recorded sales of 4.5179 trillion won, a 48% increase compared to the same period last year. Sales of automotive cameras also rose due to the supply of mobile camera modules and new models to major customers. The Packaging Solutions Business recorded revenue of 498.4 billion won, a 20% increase compared to the same period last year. Driven by rising demand for high-value-added substrates, the supply of semiconductor substrates such as RF-SiP and FC-CSP led the growth in performance. FC-BGA also contributed to improved performance as product shipments to global customers increased.

The company plans to strengthen its high-margin business portfolio. In particular, LG Innotek plans to invest more than 1.5 trillion won in expanding its semiconductor substrate production plant in Vietnam to meet the demand for AI semiconductor substrates. Additionally, the company is accelerating the development of its physical AI business, centered on autonomous driving and robotics. The plan is to focus on expanding the highly profitable and high-growth package solutions business.

Kyung Eun-guk, Chief Financial Officer (CFO) of LG Innotek, said, “In response to the surging demand amid the semiconductor boom, we have begun expanding our semiconductor substrate production plant in Vietnam and are also reviewing additional investments.”