LG Innotek Expands Semiconductor Substrate Production for AI

LG Innotek has announced that its semiconductor substrate business is operating at approximately 80.8% capacity as demand surges alongside the expanding artificial intelligence infrastructure. The company's recent report highlights a significant rebound from previous years, with operating profits rising 82% to 128.9 billion won ($96 million) due to heightened demand for advanced semiconductor substrates, particularly in AI server and data center applications. The firm is prioritizing production of flip-chip ball grid array substrates—critical components in AI technology.

As demand for semiconductor packaging substrates is projected to continue its upward trajectory, LG Innotek is exploring options to expand capacity further. CEO Moon Hyuk-soo mentioned that the growing need for high-density components in the AI and high-performance computing sectors is driving this growth. The package solution division is anticipated to reach revenue of 1.88 trillion won this year, potentially enhancing South Korea's sovereignty in semiconductor production and reducing dependency on foreign technologies.