FC-BGA, a semiconductor substrate, is experiencing a persistent supply shortage due to a lack of technology and a surge in global demand. Amidst this, LG Innotek has begun investing in additional production facilities for flip-chip ball grid arrays (FC-BGAs) and camera modules.

LG Innotek announced on the 6th that it signed a KRW 1.4 trillion investment agreement (MOU) with Gyeongsangbuk-do Province and Gumi City at Gumi City Hall. The signing ceremony was attended by Gyeongsangbuk-do Governor Lee Cheol-woo, Gumi Mayor Kim Jang-ho, People Power Party National Assembly members Koo Ja-geun and Kim Young-sik, heads of various organizations, and LG Innotek President Jeong Cheol-dong.

Through the agreement, LG Innotek will invest a total of KRW 1.4 trillion in its Gumi operations by 2023, including the acquisition of Gumi Plant 4, which has a total floor area of approximately 230,000 square meters.

The investment will be used to build manufacturing facilities for FC-BGA and camera module production. LG Innotek plans to build a new FC-BGA production line at its Gumi Plant 4, aiming for mass production next year. It also plans to expand its camera module production line. The direct and indirect job creation effect of the Gumi investment is expected to reach approximately 1,000 people.

This investment is expected to accelerate LG Innotek's market penetration of its new FC-BGA business and solidify its position as the world's leading manufacturer of smartphone camera modules. FC-BGA, which LG Innotek officially announced its market entry into last February, is a sector it is nurturing as a future growth engine.

LG Innotek plans to aggressively target the FC-BGA market by leveraging its world-class semiconductor substrate business capabilities. LG Innotek already holds the global lead in the communications semiconductor substrate market, including substrates for radio frequency system-in-package (RF-SiP), which utilize a similar manufacturing process to FC-BGA.

Camera modules are also a key business area driving LG Innotek's sales. The Optical Solutions Division, which produces camera modules, generated sales of KRW 11.8 trillion (as of 2021). Last year, sales increased by approximately 68% year-on-year, demonstrating explosive growth. LG Innotek has maintained its leading position in the global smartphone camera module market since 2011.

LG Innotek has secured the Gumi 4th plant in addition to the existing Gumi 1A, 1, 2, and 3 plants, bringing its total number of plants to five. LG Innotek's Gumi plant has a total land area of approximately 370,000 square meters, equivalent to the size of 52 soccer fields.

Gumi Mayor Kim Jang-ho said, “LG Innotek’s large-scale investment will revitalize the Gumi region’s economy,” and added, “We will not spare our continued cooperation and support to ensure that LG Innotek and the local community can coexist.”

CEO Jeong Cheol-dong said, “This investment is a great opportunity for LG Innotek, the Gumi community, and its partner companies to grow together,” and added, “We will continue to actively invest in customer experience innovation.”