LG Innotek Invests 413 Billion KRW in Next-Generation Semiconductor Substrates

[Asia Economy Reporter Yoo Hyun-seok] LG Innotek announced on the 22nd that it held a board meeting and resolved to invest 413 billion KRW in flip chip ball grid array (FC-BGA) facilities and equipment.

This investment marks the first step into the FC-BGA business. The investment amount will be used to establish the production line. LG Innotek plans to continue phased investments going forward, starting with this investment.

FC-BGA is a semiconductor substrate that connects semiconductor chips to the main board, mainly used in central processing units (CPU) and graphics processing units (GPU) for PCs, servers, and networks. Demand is rapidly increasing due to the expansion of non-face-to-face activities and improvements in semiconductor performance, but there are few companies with the necessary technology, resulting in a continued supply shortage in this field.

LG Innotek views FC-BGA as a future growth engine and established executive-level organizations responsible for FC-BGA business and development in December last year.

LG Innotek plans to leverage its world-class semiconductor substrate business capabilities to target the FC-BGA market.

LG Innotek already leads the global market in communication semiconductor substrates such as substrates for radio frequency package systems (RF-SiP) and 5G millimeter wave antenna packages (AiP), which have manufacturing processes similar to FC-BGA. It also holds a leading position in the flip chip chip scale package (FC-CSP) substrate field used in high-performance mobile application processors (AP).

In particular, LG Innotek plans to actively utilize its proprietary ultra-fine circuit, high integration and multi-layer substrate alignment (precisely and evenly stacking multiple substrate layers) technology, and coreless technology (which removes the core layer of semiconductor substrates) accumulated over nearly 40 years in the substrate materials business for FC-BGA development.

Son Gil-dong, head of LG Innotek’s substrate materials business division, said, “Based on our semiconductor substrate business capabilities leading the global market, we will nurture FC-BGA as a future growth engine. We will expand the substrate business field from mobile to servers, PCs, communications, networks, digital TVs, and vehicles, and continue ‘customer experience innovation’ to enhance customer value.”

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