Seoul: LG Innotek Co., the electronic components arm of LG Group, announced its strategic goal to significantly enhance its package solutions business in response to the increasing demand for semiconductor substrates fueled by the rise of artificial intelligence (AI).

According to Yonhap News Agency, Cho Ji-tae, the executive vice president and head of LG Innotek's package solution business unit, stated that the company plans to capitalize on its technological capabilities to swiftly increase its market share in the semiconductor substrate market. The goal is to develop the package solutions business into a unit that generates 1 trillion won (approximately US$660 million) in operating profit by 2031. In 2025, the business unit reported revenue of 1.72 trillion won, with operating profit rising 82 percent from the previous year to 128.9 billion won.

LG Innotek revealed three semiconductor substrate products, highlighting both their strong profitability and growth potential. Among these is the FC-BGA (Flip Chip Ball Grid Array), a high-performance semiconductor package substrate intended for large-scale computing systems. These substrates are crucial for connecting chips to printed circuit boards and are extensively used in AI accelerators, central processing units (CPUs), and graphics processing units (GPUs).

Industry data from LG Innotek indicates that the global FC-BGA substrate market is expected to grow at an annual rate of 10.6 percent, increasing from US$5.42 billion in 2025 to $9.55 billion by 2032. Cho emphasized the company's commitment to developing FC-BGA substrates suitable for diverse applications such as edge computing and defense. He also mentioned efforts to attract new customers among global big tech companies, aiming to establish the FC-BGA business as one of the company's core growth drivers.