LG Innotek is experiencing a strong start to trading as it outlines plans to expand its package substrate business for artificial intelligence (AI) semiconductors.
As of 9:12 a.m. on June 17, shares of LG Innotek rose by 45,000 won (3.64%) to 1,281,000 won, according to the Korea Exchange.
Market analysts interpret the positive response to the company's growth strategy for AI semiconductor substrates, which was unveiled during the Media Tech Day held the previous day.
With the growth of the AI semiconductor market and increasing demand for high-value substrates, expectations are rising for LG Innotek's long-term performance improvement.
During the event at its headquarters in Magok, Seoul, LG Innotek presented a vision to grow its package solution business to achieve an operating profit of 1 trillion won by 2031, with a revenue target exceeding 3 trillion won.
The package solution division recorded sales of 1.72 trillion won and an operating profit of 128.9 billion won last year. Although its overall sales contribution is in the single digits, it has established itself as a key profit driver, contributing 19% to operating profit.
The company plans to focus on developing FC-BGA, a high-density semiconductor substrate, as a future growth pillar, driven by the rapid demand increase from expanding AI data centers. Currently, LG Innotek is working to expand its supply of products for PCs and central processing units (CPUs) while also pursuing entry into the AI server FC-BGA market. Products for learning and inference are expected to begin production next year, while server network products are targeted for mass production in the second half of this year.
* This article has been translated by AI.
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