Q2 operating profit up 128.7% year-on-year
Semiconductor, display substrate, camera module performance driving
Announcement of new investment in semiconductor substrate facilities for communications in Gumi


LG Innotek announced on the 22nd that it recorded sales of 1.5399 trillion won and operating profit of 42.9 billion won in the second quarter of this year based on K-IFRS. Sales increased by 1.2% and operating profit increased by 128.7% compared to the same period last year. Sales decreased by 23.4% and operating profit decreased by 68.9% compared to the previous quarter.

The optical solutions business recorded sales of KRW 929.6 billion, up 12% from last year. Sales decreased by 30% compared to the previous quarter. The second quarter is usually a time when demand for camera modules decreases significantly, but the company achieved good results despite market concerns through expansion of product lines such as high-resolution camera modules and 3D sensing modules and stable production management.

The substrate materials business recorded sales of KRW 295.7 billion, up 7% from last year and 2% from the previous quarter. Global market-leading products such as tape substrates and photomasks used in communication semiconductor substrates and high-resolution display devices continued to show solid growth from the previous quarter.

The electrical components business recorded sales of KRW 232.9 billion, down 12% from the same period last year and down 18% from the previous quarter. The decline in demand for electrical components was largely due to the global automobile market downturn caused by the spread of COVID-19. However, sales of vehicle power modules, such as battery management systems (BMS) and DC-DC converters, which are core components of electric vehicles, have increased.

LG Innotek said, “Although there was a lot of market uncertainty in the second quarter, which is a seasonal off-season, due to the COVID-19 pandemic, semiconductor and display substrates and smartphone camera modules led the performance.”

On this day, LG Innotek also announced a new facility investment plan of 127.4 billion won. This investment is for expanding the production capacity of semiconductor substrates for communications.

A communication semiconductor substrate is a component that connects semiconductor chips that perform communication functions to the main substrate so that they can perform properly in a mobile device by mounting them on a single substrate.

This investment will be used to expand the production line at the Gumi plant, which is the core base of the substrate material business. The investment period is from July 22 to June 30 of next year.