LG Innotek Co. has committed 600 billion won ($444 million) to expand production of advanced semiconductor substrates and high-value camera modules at its facilities in Gumi, South Korea.
The electronics component maker signed an investment agreement with North Gyeongsang Province and Gumi City on Monday, with funding scheduled from April through December 2026, according to a company statement.
This investment follows LG Innotek’s 1 trillion won allocation to its Gumi operations in 2022, which included the acquisition of a 230,000-square-meter facility now known as the “Dream Factory.” The plant began mass production of flip chip ball grid array (FC-BGA) substrates for global technology customers in December.
LG Innotek aims to develop its FC-BGA business into a trillion-won revenue segment this year by securing additional customers and advancing technologies including glass substrates, the company said.
For camera modules, the manufacturer plans a dual production strategy with legacy components made in Vietnam while higher-value products will be manufactured at Gumi.
CEO Moon Hyeok-soo cited Gumi as a “strategic hub” serving as the foundation for the company’s core business operations, indicating the investment would support both regional economic growth and the firm’s production capabilities.
