LG Innotek announced on the 25th that it has signed a memorandum of understanding (MOU) for an investment agreement worth 600 billion won with Gyeongsangbuk-do and Gumi City.
LG Innotek plans to utilize this investment amount for expanding the FC-BGA mass production line and for new equipment investments for high-value camera module production. The investment period runs from April to December 2026.
Previously, LG Innotek signed an investment agreement with Gumi City in 2022 and has made a total investment of 1.4 trillion won at its Gumi business sites.
With the investment made at that time, LG Innotek acquired the Gumi Plant 4, which has a total floor area of 230,000 square meters, and established the "Dream Factory," which serves as a production hub for the new business of flip chip (FC)-ball grid array (BGA). Additionally, it expanded the production line for mobile camera modules.
With this additional investment, LG Innotek plans to accelerate its efforts to strengthen the competitiveness of its substrate and optical solution businesses.
LG Innotek has built the "Dream Factory" as a cutting-edge smart factory incorporating the latest IT technologies such as AI, robotics, and digital twins, and has officially started mass production of FC-BGA for PCs supplied to global big tech customers in December last year.
To enhance cost competitiveness in its optical solution business, LG Innotek plans to operate separate production lines, manufacturing existing legacy model products at its Vietnamese plant, while the high-value camera modules for new models will be produced at the Gumi plant.
CEO Moon Hyuk-soo noted, "As Gumi is a strategic hub that serves as the foundation for LG Innotek's core business, we will continue to invest to ensure that the Gumi community and partner companies grow together and create the best customer value."