[Edaily Reporter JAEMIN SONG ] LG Innotek’s revenue surpassed 6 trillion won for the first time in the third quarter of this year, but its operating profit fell by more than half compared to the same period last year. Revenue increased due to new product launches by major clients and rising demand for high-value-added semiconductor substrates, but the sharp drop in the won-dollar exchange rate impacted profitability.
(Photo: LG Innotek) LG Innotek announced on the 27th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 94.8 billion won, a 53.4% decrease from the same period last year.
Revenue rose 18.6% year-over-year to 6.3671 trillion won. This marks the first time revenue has exceeded 6 trillion won in the third quarter. Compared to the previous quarter, revenue increased by 15.2%, but operating profit fell by 61.4%.
Supplies of mobile camera modules expanded as major clients began full-scale mass production of new products, and demand also increased for high-value-added semiconductor substrates such as Radio Frequency System-in-Package (RF-SiP), Flip-Chip Chip-Scale Package (FC-CSP), and Flip-Chip Ball Grid Array (FC-BGA).
A company official explained, “Operating profit decreased year-over-year due to a sharp drop in the won-dollar exchange rate between the time raw materials were purchased and the time products were shipped for mass production.”
By business segment, revenue from the Optical Solutions business rose 20.6% year-over-year to 5.4041 trillion won. The Package Solutions business recorded 481.8 billion won, up 10.1%, while the Mobility Solutions business posted 481.1 billion won, an increase of 6.8%.
LG Innotek plans to strengthen its business by focusing on high-value-added semiconductor substrates to improve profitability. The company is considering expanding its FC-BGA production facilities and making additional investments both domestically and internationally, and plans to gradually enter the high-end market for artificial intelligence (AI) accelerators and servers by 2028.
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