LG Innotek to Invest Additional 600 Billion KRW in Gumi... Strengthening Competitiveness in Substrate and Optical Businesses
Signed MOU with Gyeongsangbuk-do Province and Gumi City
Expansion of FC-BGA Mass Production Line
Investment in New Facilities for High Value-Added Camera Modules
Contributing to Revitalizing the Gumi Regional Economy
LG Innotek announced on the 25th that it has signed an investment agreement (MOU) worth 600 billion KRW with Gyeongsangbuk-do Province and Gumi City.
With this investment, LG Innotek plans to expand the production line for semiconductor package substrates (FC-BGA) and invest in new facilities for high value-added camera module production. The investment period is from April this year to December 2026.
Previously, LG Innotek signed an agreement with Gumi City in 2022 and made a total investment of 1.4 trillion KRW in the Gumi plant. Through that investment, LG Innotek acquired the Gumi Plant 4, which has a total floor area of 230,000㎡, and newly established the 'Dream Factory' as a production base for the new FC-BGA business. Additionally, the production line for mobile camera modules was also expanded.
With this additional investment, LG Innotek is expected to accelerate strengthening its competitiveness in the substrate and optical solutions business. LG Innotek has built the Dream Factory as a state-of-the-art smart factory incorporating the latest IT technologies such as artificial intelligence (AI), robotics, and digital twin, and began full-scale mass production of PC FC-BGA supplied to global big tech customers in December last year.
Starting this year, LG Innotek plans to actively foster the FC-BGA business as a trillion-won scale business by discovering additional FC-BGA customers and accelerating the internalization of next-generation substrate technologies such as glass substrates.
LG Innotek will further solidify its global No.1 position in camera modules and enhance cost competitiveness in the optical solutions business by operating dual production lines: legacy model products will be produced at the Vietnam plant, while high value-added camera modules for new models will be produced at the Gumi plant. In particular, LG Innotek’s investment is expected to create a large number of new jobs in the Gumi area.
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Kim Jang-ho, Mayor of Gumi City, said, "LG Innotek’s additional investment will be an opportunity to revitalize the Gumi regional economy," and added, "Gumi City will spare no effort to provide various supports so that LG Innotek and the local community can coexist." Moon Hyuk-soo, CEO of LG Innotek, stated, "Since Gumi is a strategic key location that forms the foundation of LG Innotek’s core businesses, we will continue to invest so that the Gumi community and partner companies can grow together and create the best customer value."
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