Cho Ji-tae, Executive Vice President and Head of LG Innotek’s Package Solution Business Division, expressed his determination to achieve an operating profit of 1 trillion won by 2031, stating, “We will rapidly expand our market share in the newly emerging semiconductor substrate market based on our differentiated technological capabilities.”

The company aims to expand its package solution business revenue to over 3 trillion won by 2030.

At the center of the growth strategy are three types of high-value semiconductor substrates: RF-SiP, FC-CSP, and FC-BGA.

RF-SiP is a product whose application areas can be expanded beyond LTE, 5G, and 6G communication in smartphones to include vehicles, smart glasses, satellites, and AI power management.

In 2011, LG Innotek developed and mass-produced the world's first coreless RF-SiP substrate, reducing the substrate thickness by 20% and lowering signal loss by 70% compared to existing substrates.

Based on the top 5 global RF customers as of last year, the market share was approximately 65%, and it is expected to expand to 80% this year.

LG Innotek's core competitive advantage in RF-SiP is the Cu-Post process.

Instead of the conventional solder ball method, it has a structure in which copper pillars are erected and small solder balls are placed on top of them, which can increase circuit integration density while reducing the substrate thickness by nearly 20%.

The company is also developing next-generation Cu-Post technology that reduces solder ball spacing by 10% compared to the current level, and through this The plan is to lead the telecommunications semiconductor substrate market even in the 6G era.

FC-CSP is expanding its applications from mobile application processors (APs) to the memory sector.

The explanation is that as the AI market shifts from learning-centric to inference- and agentic AI, the adoption of memory semiconductor chips such as GDDR is increasing, and the demand for FC-CSP substrates used to package them is also growing.

LG Innotek announced that it recently secured orders for FC-CSP substrates for GDDR7 for global semiconductor customers, and that its Gumi semiconductor production line is operating at full capacity as new orders for memory FC-CSP continue to follow.


FC-BGA is considered the product family with the greatest potential for future growth.

FC-BGA is a large, high-performance semiconductor substrate used in PC chipsets, CPUs, autonomous vehicles, and CPUs/GPUs for AI servers.

Compared to FC-CSP, the area is more than 18 times larger, and the number of layers is 16 to 22, which is 3 to 4 times greater than the 6 to 8 layers of FC-CSP, making the process difficult.

LG Innotek has currently secured mass production technology for large-area FC-BGA substrates measuring 85 mm by 85 mm, and is also developing ultra-large area substrates exceeding 120 mm.

Last December, mass production of FC-BGA for PC chipsets for global big tech customers began at the Gumi 'Dream Factory,' and mass production of products for PC CPUs for the same customers is also scheduled to begin in earnest from the third quarter.

Investment is also being expanded in stages.

LG Innotek is pursuing an investment of 1 trillion won in Vietnam package solutions by 2028.

Although RF-SiP, FC-CSP, and FC-BGA are all scheduled to be produced at the expanded semiconductor substrate factory in Vietnam, the 1 trillion won mentioned by the company is the initial investment amount centered mostly on RF-SiP and FC-CSP.

Once the investment scale for FC-BGA is finalized, the total investment scale could increase further. For future additional investments, we will review not only Vietnam but also domestic and international production sites, such as Europe and the U.S., as potential candidates.

The development and mass production schedules for server FC-BGAs are divided by application.

FC-BGA substrates for learning and inference are targeted for mass production in 2027, and FC-BGAs for server networks are under development with the goal of mass production in the second half of this year.

Large-area FC-BGA with 100 or more bodies is currently in the stage of joint product development with customers and is not yet at the mass production or supply stage.

The company set a goal to grow its FC-BGA sales from approximately 50 billion won last year to at least 1 trillion won by 2030.

The outlook for upstream industries is also favorable.

With the spread of AI increasing the demand for high-performance semiconductors in data centers, servers, vehicles, and edge computing, the importance of large-area, high-multilayer substrates is growing.

In particular, as the proportion of memory and CPU is expected to expand in the era of inference-based AI, new opportunities are opening up for both FC-CSP and FC-BGA.

The global FC-BGA substrate market is projected to grow at an average annual rate of 10.6%, from $5.42 billion (approximately 8.21 trillion won) last year to $9.548 billion (approximately 14.46 trillion won) in 2032.

LG Innotek's strategy is to shed the label of a latecomer in the AI semiconductor substrate market and leap forward as a key supplier by leveraging its smart factory-based production capabilities and high-density, ultra-precision substrate technology.