LG Innotek’s semiconductor substrate business is rapidly becoming a key growth driver for the company. Fueled by the expansion of artificial intelligence (AI) infrastructure and increasing demand for advanced packaging solutions, LG Innotek’s factories are now operating at approximately 80% capacity.
According to LG Innotek’s 2025 business report, released Thursday, the average utilization rate of its semiconductor substrate production lines reached 80.8% in the past year. This represents a significant increase from 63.2% in 2023 and 75.6% in 2024, highlighting the strong growth trajectory of this business segment.
This surge in demand has propelled substantial growth within LG Innotek’s Package Solution division, the unit responsible for its semiconductor substrate business. In 2025, the division’s operating profit soared by 82% year-over-year to 128.9 billion won ($96 million USD), while revenue increased by 18% to 1.72 trillion won.
Although the Package Solution division currently accounts for only 7.9% of LG Innotek’s total sales, it impressively generates 19.4% of the company’s overall operating profit, showcasing its high profitability and growth potential.
Industry analysts attribute this impressive performance to the escalating demand for advanced semiconductor substrates, which are being deployed in an expanding range of applications. Mobile substrates, such as flip-chip chip-scale packages (FC-CSP), are increasingly utilized in advanced memory chips like GDDR7, thereby broadening their market reach and adoption.
LG Innotek is strategically focusing on flip-chip ball grid array (FC-BGA) substrates – high-density components essential for AI servers and data centers – as a significant new growth catalyst for the company.
“Demand for semiconductor package substrates is expected to continue rising in the foreseeable future,” stated CEO Moon Hyuk-soo earlier this year at the CES 2026 tech show in Las Vegas, underscoring the company’s optimistic outlook.
CEO Moon further added that LG Innotek’s substrate production lines are projected to soon reach maximum capacity. Consequently, the company is actively exploring options to expand production capabilities in order to effectively meet the burgeoning demand from the rapidly growing AI and high-performance computing (HPC) sectors.
Brokerage estimates suggest that the Package Solution division’s revenue could reach 1.88 trillion won this year, with operating profit projected to climb to 181.8 billion won, driven by continued strong demand from the AI and high-performance computing markets.
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