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LG Innotek manufacturing facility. (Photo courtesy of LG Innotek) |
[Alpha Biz= Kim Jisun] LG Innotek’s package solutions business is rapidly gaining prominence, with operating profit expected to nearly double year-on-year on the back of strong demand for high-value semiconductor packaging.
According to market estimates released on Friday, the unit posted fourth-quarter revenue of KRW 489.2 billion, up about 27% from a year earlier. Full-year revenue is estimated at KRW 1.72 trillion, an 18% increase from the previous year, lifting the division’s share of LG Innotek’s total sales from 6.9% in 2024 to 7.9% last year.
Operating profit growth has been even more pronounced. Based on reports from six securities firms following LG Innotek’s preliminary earnings release, fourth-quarter operating profit for the package solutions unit is estimated at KRW 465–520 billion. Using the midpoint estimate, full-year operating profit would reach around KRW 129.5 billion, up roughly 83% from KRW 70.8 billion a year earlier.
The business is widely believed to supply semiconductor substrates and related components to Samsung Electronics’ memory packaging operations, benefiting from a recovery in the memory market.
Analysts attribute the strong performance to rising demand for high-density, high-value mobile semiconductor substrates driven by the expansion of 5G services and the increasing performance requirements of premium smartphones. Market watchers say the package solutions unit is entering a full-fledged growth phase as advanced packaging becomes a key differentiator in the semiconductor value chain.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
