Leading the market with products such as RF-SiP, TS, and PM
Preparing for the future through continuous investment and R&D


LG Innotek announced on the 11th that its substrate materials business is achieving stable performance every quarter.

LG Innotek recorded sales of 2.0109 trillion won and an operating profit of 138 billion won in the first quarter of this year. Despite the seasonal off-peak period and the spread of COVID-19, sales increased by 46.9% compared to last year, and operating profit turned into a surplus.

Of these, the substrate materials business recorded sales of 289.7 billion won, a 13% increase from last year. The sales expansion was driven by increased sales of semiconductor substrates used in 5G chips and tape substrates applied to high-resolution display devices.

The role of global No. 1 products such as RF-SiP (Radio Frequency-System in Package), tape substrates, and photomasks was significant in establishing the substrate materials business as a lucrative business.

RF-SiP, a semiconductor substrate for communication, is a component that transmits electrical signals by connecting communication chips, APs, etc., of smartphones and wearable devices to the main board. This product held a 32% global market share last year and has maintained its position as the global leader since 2018, recording an average annual sales growth of approximately 40%.

Tape substrates are thin tape-shaped components that transmit electrical signals by connecting display panels and main boards. It held a 40% global market share last year and has maintained the number one position globally since 2009.

A photomask is a barrier film with microcircuits etched onto it, used to etch circuits onto a panel by shining light on it. This product also held a 33% global market share last year and has maintained its position as the global leader since 2000.

Both products are key components for displays and are optimized for ultra-thin, high-resolution displays with thin bezels. In particular, demand for these two components is increasing every year in the OLED sector.

The industry forecasts that the strong performance of LG Innotek's substrate materials business will continue for the time being. This is because the company has significantly widened the technological gap with competitors for telecommunications semiconductor substrates, and a supply shortage persists for tape substrates due to the scarcity of companies possessing core technologies. Photomasks also face high barriers to entry, requiring large-scale facility investment and advanced technology.

Meanwhile, according to the Korea Institute for Industrial Technology Promotion, LG Innotek ranked 12th among the top 100 domestic companies in R&D investment last year. In November of last year, LG Innotek withdrew from the mobile High Density Interconnection (HDI) sector, where it had been suffering continuous losses due to the low-price offensive by Chinese companies.

An official from LG Innotek stated, “We have reorganized our business portfolio around businesses capable of growth and profit generation by transferring personnel and facilities from the HDI business to the semiconductor substrate business,” adding, “We are continuously increasing productivity, such as by minimizing defect rates through the introduction of new systems.”