LG Innotek CEO Moon Hyuk-soo said the company will continue to shift toward higher-margin and high-value businesses, positioning itself as a solutions provider rather than a traditional parts maker.
Speaking to reporters at CES 2026 on Wednesday, Moon said the company plans to reorganize its portfolio around profitable package solution businesses, combining hardware and software to offer integrated services to customers.
“LG Innotek is no longer just a parts supplier,” Moon said. “We are providing solutions that integrate software with hardware, rather than simply producing components requested by customers.”
Since taking office in December 2023, Moon has focused on strengthening the company’s portfolio and expanding new businesses based on proprietary technologies. LG Innotek said profitability has improved in substrates and electrical components, while new businesses such as robotics, sensing and flip-chip ball grid array have begun to generate results.
Moon said LG Innotek plans to expand its package solution business, citing rising demand for high-performance, high-density semiconductor substrates driven by the spread of 5G and advancing smartphone hardware. Global market research firm Research Nester estimates the global high-performance integrated circuit substrate market will grow at an annual rate of about 10.4 percent, reaching $56.8 billion by 2035.
As of the third quarter of 2025, cumulative revenue from the package solution business jumped 14.3 percent on year to 1.23 trillion won ($844 million), while operating profit surged 65 percent to 80.2 billion won, accounting for more than 20 percent of LG Innotek’s total operating profit.
Moon said LG Innotek would accelerate development of next-generation glass substrates, with mass production targeted for 2028. He added that the company has begun generating revenue in robotics, with mass production of robot sensing components starting this year, exploring commercialization opportunities spanning sensing, actuators, motors and tactile sensors.
“We will allocate resources through selection and focus to enhance competitiveness and secure new growth engines,” Moon said. “We plan to advance core technologies, including autonomous driving sensing, glass substrates and artificial intelligence.”
andreahaneu@heraldcorp.com
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