LG Innotek announced mass production of copper post technology for semiconductor substrates, claiming it enables 20% denser chip packaging for smartphones. The South Korean components maker began shipping the technology in July, targeting growth in the rapidly expanding substrate market.
The announcement comes as LG Innotek faces financial headwinds, with operating profit falling 28.89% in the third quarter despite 19% revenue growth to 5.68 trillion won ($4.12 billion). The company remains heavily dependent on Apple, which accounts for over 80% of its revenue, making it vulnerable to iPhone sales fluctuations.
Industry observers note that while the copper post technology shows promise, it presents significant manufacturing challenges requiring extremely high precision, potentially affecting production yields. The advanced IC substrate market is projected to grow at 15.69% annually through 2032, intensifying competition among suppliers.
LG Innotek secured approximately 40 patents for the technology and plans to apply it to RF-SiP and FC-CSP substrates. The company targets $3 billion in annual semiconductor component sales by 2030, though this ambitious goal will require diversifying beyond its Apple dependence while competing against established players in the substrate packaging market.
The technology replaces traditional solder ball connections with copper posts, potentially enabling smaller, more efficient smartphone designs as manufacturers pursue increasingly thin devices.
