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LG Innotek Boost CPU And GPU Processing Speed

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LG Innotek supplies Intel and NVIDIA with advanced Flip Chip Ball Grid Array (FC-BGA) substrates, boosting semiconductor efficiency and enabling faster data processing for CPUs and GPUs.

LG Innotek, a Korean electronic component manufacturer, supplies its high-value semiconductor substrate, Flip Chip Ball Grid Array (FC-BGA), to American tech giants Intel and NVIDIA. It is referred to as High Bandwidth Memory (HBM) shaping the substrate market’s . 

FC-BGA, an advanced Printed Circuit Board (PCB), is a game-changer in the world of data processing. It connects semiconductor chips to the main substrate, significantly enhancing data exchange efficiency among CPUs, GPUs, and DRAMs, and paving the way for faster data processing. 

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As chipmakers shift to high-density circuit substrates for better system performance, multi-layer substrates like FC-BGA replace general substrates in AI, autonomous cars, and servers. FC-BGA transmits electrical signals and power by connecting high-density chips to the mainboard.

The new FC-BGA facility will be an intelligent factory integrated with the latest DX technologies, including AI, robotization, unmanned systems, and intellectualization. When large-scale production begins, LG Innotek’s targets in the global FC-BGA market for network/modem and digital TV are expected to accelerate. Product development for PC/server applications also becomes feasible.

The Fujifilm Comprehensive Research Institute states that the global FC-BGA market will more than double from $8 billion (approximately 10 trillion won) in 2022 to $16.4 billion (about 20.2 trillion won) by 2030. 

Japan’s Ibiden Co., Shinko Electric Industries Co., and Taiwan’s Unimicron lead the FC-BGA market. LG Innotek, Samsung Electro-Mechanics, and Austria’s AT&S enter the competition. Korea’s Samsung Electro-Mechanics, supplying FC-BGA to companies like Apple, invested over 1 trillion won in 2021 to build production facilities in Vietnam.

This FC-BGA order helps reduce LG Innotek’s dependence on Apple. LG Innotek primarily supplies camera modules to Apple, accounting for 85% of its total sales in 2022, dropping to 77% last year. However, LG Innotek’s performance still heavily relies on iPhone sales.

With a clear strategic vision, LG Innotek is focused on expanding its electronic device components business, including Advanced Driver Assistance Systems (ADAS) and automotive lighting, as future growth drivers. The company aims to increase its electronics business sales to an impressive 5 trillion won by 2029, demonstrating its commitment to continuous growth and innovation.

CEO Jeong Cheol-dong says LG Innotek leads the substrate material market with its world-class technology; it will develop our FC-BGA business into a global No.1.

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