LG Innotek posted a 31 percent year-on-year jump in fourth-quarter operating profit to 324.7 billion won ($226 million), fueled by strong demand from its largest customer —widely understood to be Apple — and favorable foreign exchange rates.
However, full-year profit declined 5.8 percent to 665 billion won.
Fourth-quarter sales rose 14.8 percent to 7.61 trillion won, its highest on record. The gains were led by shipments of high-value camera modules and Radio Frequency System-in-Package components, which are integrated modules that consolidate wireless communication chips for mobile devices. These were supplied across the iPhone 17 lineup, which saw stronger-than-expected demand in key markets like China.
Annual revenue reached 21.9 trillion won, up 3.3 percent, but profitability was weighed down by one-off year-end costs, including performance-based bonuses linked to the late-year sales surge.
LG Innotek’s Optical Solutions division, responsible for camera modules, contributed 87 percent of fourth-quarter revenue. However, the margin upside is increasingly being driven by the Package Solutions division, which manufactures advanced semiconductor substrates such as RF-SiP and Flip Chip-Chip Scale Package, which are key enablers for compact, high-performance mobile and artificial intelligence hardware. Sales in this unit jumped 27.6 percent on-year, and the company expects continued full-capacity operation into 2026.
The company said demand for these substrates remains strong and that utilization is expected to reach full capacity, with possible capacity expansion under review.
Meanwhile, the mobility solutions division, which includes components for automotive cameras, communications and lighting systems, posted flat revenue. Still, LG Innotek secured 4.8 trillion won in new mobility orders last year, bringing its backlog to a record 19.2 trillion won.
mjh@heraldcorp.com
