LG Innotek surpassed 10 trillion won in sales for the first time in the first half, buoyed by rising demand for semiconductor substrates for artificial intelligence (AI) servers. Second-quarter sales also hit a record high on a quarterly basis, extending its earnings growth.
LG Innotek disclosed on the 27th that it posted 5.5272 trillion won in sales and 245.8 billion won in operating profit on a consolidation basis in the second quarter. Sales rose 41% from a year earlier, and operating profit surged 2,057.3%. It was the highest second-quarter sales on record, and cumulative first-half sales reached 11.0621 trillion won, surpassing 10 trillion won in first-half sales for the first time since the company was founded.
Despite the seasonal off-peak period, steady demand for mobile camera modules and expanded supply of high-value semiconductor substrates for AI servers drove the results. The mobility components business, including in-vehicle cameras and communication and lighting modules, also contributed to the increase in sales.
LG Innotek plans to foster its package solution business, aimed at the AI era, as a future growth pillar. While responding to the expansion of the physical AI market, including Autonomous Driving and robots, it will continue to raise the share of the semiconductor substrate business, which has high profitability.
Kyung Eun-guk, chief financial officer (CFO) of LG Innotek, said, "To meet growing demand amid the semiconductor boom, we have begun expanding our semiconductor substrate production plant in Vietnam and are reviewing additional investment," and added, "We will nurture the package solution business into the company's core growth engine based on expanded capital expenditure (CAPEX), AI transformation (AX) of production processes, and differentiated technological capabilities."