LG Innotek Q3 Revenue Tops 6 Trillion Won for First Time; Operating Profit Falls 53% on Exchange Rate Decline

Third-quarter revenue reaches 6.3671 trillion won; operating profit at 94.8 billion won
Revenue rises on increased demand for camera modules and semiconductor substrates
Company steps up efforts to improve profitability by strengthening core business competitiveness

LG Innotek posted revenue of more than 6 trillion won in the third quarter of this year, marking its highest-ever third-quarter revenue. Revenue increased across all business segments as demand grew for mobile camera modules and high-value-added semiconductor substrates, but operating profit fell by more than half year over year due to a sharp decline in the exchange rate.

LG Innotek said on Oct. 27 that its preliminary revenue for the third quarter was 6.3671 trillion won, up 18.6% from a year earlier. Operating profit fell 53.4% to 94.8 billion won.

This was the first time quarterly revenue exceeded 6 trillion won. As mass production of new models for customers got underway, supplies of mobile camera modules expanded. Demand also continued to grow for high-value-added semiconductor substrates, including RF-SiP (radio frequency system-in-package), FC-CSP (flip-chip chip-scale package) and FC-BGA (flip-chip ball grid array).

However, profitability weakened as the won-dollar exchange rate plunged between the time raw materials were purchased and products were shipped. This led operating profit to fall despite revenue growth.

LG Innotek FC-BGA. LG Innotek.

LG Innotek plans to upgrade its business portfolio with a focus on high-margin, high-value-added products while accelerating the development of new businesses in physical AI, including autonomous driving and robotics. Its strategy is to boost profitability by strengthening the competitiveness of its core businesses and secure future growth drivers.

Its Package Solution business will expand its high-value-added semiconductor substrate business, with FC-BGA at its center. The company plans to expand production capacity and consider additional investments in Korea and overseas to meet growing market demand. Following the start of mass production of FC-BGA products for PC central processing units (CPUs), the company plans to enter the high-layer-count, large-area substrate market for AI accelerators and servers in phases through 2028. It will strengthen the global competitiveness of RF-SiP with differentiated technologies, while expanding FC-CSP applications from mobile application processors (APs) to memory.

Its Optical Solutions business will boost productivity by automating and enhancing the intelligence of manufacturing processes through AI transformation (AX), and strengthen cost competitiveness by bringing key components in-house and diversifying its global production bases. Its Mobility Solutions business plans to enhance the competitiveness of high-value-added products, including vehicle communications and lighting, while expanding new businesses such as vehicle AP modules and digital keys.

By business segment, revenue in the Optical Solutions business rose 20.6% year over year to 5.4041 trillion won. Increased supplies of high-value-added mobile camera modules following the start of mass production of new customer models, along with higher supplies of automotive cameras to North American customers, drove the results.

Revenue in the Package Solutions business increased 10.1% to 481.8 billion won. Demand remained solid for semiconductor substrates such as RF-SiP and FC-CSP, while supplies of FC-BGA for PC CPUs to global customers also expanded.

The Mobility Solutions business posted revenue of 481.1 billion won, up 6.8% year over year. Revenue grew for key products such as automotive communications modules and lighting, while new businesses such as vehicle AP modules and digital keys also showed growth.

This content was produced with the assistance of AI translation services.