March 27, 2025 /SemiMedia/ — LG Innotek announced on March 25 that it has signed an additional investment agreement with North Gyeongsang Province and Gumi City, committing KRW 600 billion to expand semiconductor substrate production at its Gumi plant. The investment will enhance flip-chip ball grid array (FC-BGA) capacity and establish new high-end camera module manufacturing facilities, with the investment period spanning from April 2025 to December 2026.

This follows LG Innotek’s KRW 1 trillion investment in 2022 to expand the Gumi site. The company previously acquired the 230,000-square-meter Gumi Plant 4 and established the “Dream Factory” as a dedicated FC-BGA production hub. Integrating artificial intelligence (AI), robotics, and digital twin technologies, the facility optimizes production processes. Since December 2024, the Dream Factory has been mass-producing FC-BGA substrates for PCs, reinforcing its strategic role in the global semiconductor supply chain.

LG Innotek’s expansion in FC-BGA aims to strengthen its position in the high-performance computing and communication markets. From 2025, the company plans to grow its FC-BGA business into a trillion-won segment by expanding its customer base and developing next-generation glass substrate technologies.

For its camera module business, LG Innotek will adopt a dual production strategy, with older models manufactured in Vietnam while new high-end models will be produced at the Gumi plant. This approach enhances production efficiency and positions Gumi as a hub for high-value manufacturing.

The investment is expected to drive significant economic growth in the Gumi region, creating jobs and boosting local industry. LG Innotek CEO Moon Hyeok-soo emphasized the strategic importance of Gumi, stating, “Gumi is a core hub for LG Innotek’s key businesses. We will continue investing to support the local ecosystem and maximize customer value.”