LG Innotek to co-develop large AI substrate with Big Tech firm

LG Innotek is co-developing large semiconductor substrates for AI with a North American Big Tech firm, expecting tangible results by year-end. The company targets over 1 trillion won in annual operating profit from the business by 2031, a nearly 10-fold increase from last year.

LG Innotek said it is working with a North American Big Tech company to develop large semiconductor substrates for artificial intelligence AI applications, with the company expecting "tangible results" by the end of this year. The company announced its substrate business roadmap during a press conference at its headquarters in western Seoul, Tuesday, noting that it plans to achieve over 1 trillion won $662.6 million in annual operating profit from the business by 2031, which is nearly 10-fold growth compared to last year’s 128.9 billion won. During the conference, Cho Ji-tae, head of LG Innotek's Package Solution Business, and Myeong Se-ho, vice president of development for the unit, said the company is developing large flip chip-ball grid array FC-BGA substrates and is discussing joint development plans with North American customers. "We are now working with North American customers to jointly develop over-100-body FC-BGA," Cho said. "These are customers that have made financial commitments to secure our production capacity." FC-BGA is an advanced substrate for AI servers on whi