LG Innotek to Invest 1.4 Trillion KRW in Gumi... Securing Additional Substrate and Camera Module Production Bases

Total Investment of 1.4 Trillion KRW by 2023 at Gumi Plant
Investment Funds Utilized for FC-BGA and Camera Module Production Facility Construction

LG Innotek Gumi Plant Panorama

[Asia Economy Reporter Park Sun-mi] LG Innotek is expanding its production bases for semiconductor substrates (FC-BGA) and camera modules.

On the 6th, LG Innotek announced that it signed an investment agreement (MOU) worth 1.4 trillion KRW with Gyeongsangbuk-do Province and Gumi City at Gumi City Hall. LG Innotek will invest a total of 1.4 trillion KRW in the Gumi site by 2023, including the acquisition of Gumi Plant 4 (formerly LG Electronics A3 Plant), which has a total floor area of approximately 230,000㎡. The investment will be used to establish manufacturing facilities for FC-BGA and camera module production.

LG Innotek plans to build a new FC-BGA production line at Gumi Plant 4 with the goal of mass production next year. FC-BGA, officially launched into the market last February, is a field that LG Innotek is nurturing as a future growth engine. FC-BGA is a semiconductor substrate that connects semiconductor chips for PCs, servers, and networks to the main board. Despite the rapidly increasing global demand, there are few companies with the necessary technology, resulting in a persistent supply shortage.

With the expansion of camera module production facilities, LG Innotek can further solidify its position as the world's number one smartphone camera module supplier. Camera modules are a representative business area driving LG Innotek's sales. The Optical Solutions Division, which produces camera modules, recorded sales of 11.8 trillion KRW last year. In particular, sales increased by about 68% compared to the previous year.

On the 6th, LG Innotek signed an investment agreement (MOU) with Gyeongsangbuk-do and Gumi City at the Gumi City Hall. LG Innotek plans to invest a total of 1.4 trillion KRW in the Gumi plant, including the acquisition of Gumi Plant 4, by 2023. (From left in the photo: Lee Cheol-woo, Governor of Gyeongsangbuk-do; Jeong Cheol-dong, President of LG Innotek; Kim Jang-ho, Mayor of Gumi)

LG Innotek will have a total of five plants by adding Gumi Plant 4 to the existing Gumi Plants 1A, 1, 2, and 3. The total site area of LG Innotek's Gumi business site is approximately 370,000㎡, equivalent to 52 soccer fields combined. The direct and indirect employment creation effect from this Gumi investment is expected to reach about 1,000 people.

President Jung Cheol-dong said, “This investment is a great opportunity for LG Innotek, the Gumi local community, and partner companies to grow together,” and added, “We will continue active investments to innovate customer experiences.”

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