Moon Hyuk-su, CEO of LG Innotek, "Starting Mass Production of FC-BGA for Global Big Tech... Fostering Trillion-Won Business"

Mass Production of FC-BGA for Global Big Tech at Gumi Plant 4
Aiming for the 20 Trillion-Won Market with the 'Dream Factory'

Moon Hyuk-soo, CEO of LG Innotek, met with reporters at CES 2025, the world's largest information technology (IT) and consumer electronics exhibition held in Las Vegas, USA, on the 8th (local time), and stated, "We have recently started mass production of FC-BGA (Flip-Chip Ball Grid Array) for North American big tech companies," adding, "We are also pursuing development cooperation with several other global big tech companies."

On the 8th (local time), Moon Hyuk-soo, CEO of LG Innotek, is answering reporters' questions at the CES 2025 exhibition booth. Photo by LG Innotek

FC-BGA is a substrate that has become a core component in 5D packaging and high-performance semiconductors. It connects semiconductor chips to the mainboard substrate and offers better performance and efficiency compared to traditional methods.

After entering the FC-BGA business in 2022, LG Innotek successfully mass-produced FC-BGA substrates for network and modem applications as well as for digital TVs within six months by utilizing the pilot production line at its Gumi Plant 2.

In the same year, LG Innotek acquired Gumi Plant 4 (approximately 220,000㎡) from LG Electronics and established a new FC-BGA production line. Mass production for global big tech companies is also conducted at the new Gumi plant. LG Innotek plans to continue securing meaningful orders and gradually enter the high-end FC-BGA market for AI/server applications, aiming to develop FC-BGA into a trillion-won scale business.

CEO Moon said, "The smart factory at Gumi Plant 4, equipped with top-level AI and automated processes, requires initial investment costs but significantly improves yield and provides LG Innotek’s unique differentiation by simultaneously enhancing technological and price competitiveness."

Regarding the outlook and development status of glass substrates, CEO Moon stated, "Glass substrates are expected to begin mass production for communication semiconductors in 2 to 3 years, and around 5 years later, glass substrates will become the mainstay for server applications. LG Innotek is now making equipment investments and will start full-scale pilot mass production of glass substrates from the end of this year."

He added, "(Glass substrates) are the direction we must take, and many companies are currently weighing the timing for mass production. LG Innotek is preparing to ensure it is not late."

At CES 2025, LG Innotek showcased for the first time its automotive AP modules and FC-BGA substrates, which are high-value semiconductor substrates. The automotive AP module is a component installed inside vehicles that integrates and controls automotive electronic systems such as Advanced Driver Assistance Systems (ADAS) and Digital Cockpit. It functions as the brain of the vehicle, similar to a computer’s central processing unit (CPU).

CEO Moon said, "In preparation for intensified global competition, we have been focusing on utilizing overseas factories in Vietnam and Mexico and automating factories through DX application. Once depreciation is complete and the expansion of the Vietnam factory is completed and operational this year, the cost competitiveness of the camera module business will improve, enhancing profitability."

LG Innotek plans to actively utilize the new Vietnam factory, whose expansion is expected to be completed around June, as a core production base for smartphone camera modules. With this expansion, the camera module production capacity (CAPA) of the Vietnam factory will more than double, enabling LG Innotek to handle large-scale orders from customers.

Additionally, CEO Moon stated, "Based on LG Innotek’s global No. 1 camera technology, we are actively collaborating with leading companies in the humanoid field," and added, "We are cooperating with more than half of the 14 humanoids featured in the keynote speech at this CES."

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