LG Innotek (011070) posted preliminary second-quarter operating profit of 245.8 billion won, the company said in a regulatory filing on the 27th. The figure represents a 21.7-fold increase from the 11.4 billion won recorded in the second quarter of last year.
Revenue also rose 41% over the same period to 5.5272 trillion won, marking the highest-ever result for a second quarter. Combined with the first quarter, first-half revenue reached 11.0621 trillion won, surpassing 10 trillion won for the first time.
"Solid demand for mobile camera modules continued, while strong supply based on high-value-added semiconductors such as flip-chip ball grid array (FC-BGA) also persisted," LG Innotek said. "Mobility components including vehicle cameras, communication modules and lighting modules also contributed to revenue growth."
The optical solutions business, the company's existing core operation that includes camera modules, drove growth with revenue of 4.5179 trillion won. The package solutions business, a high-margin operation that supplies semiconductor substrates, also posted revenue of 498.4 billion won, up 20% from a year earlier. The company said the improved results were driven by increased supply of products to global customers, including flip-chip ball grid array (FC-BGA), a key substrate used in AI chips.
"To respond to surging demand amid the semiconductor boom, we have begun expanding our semiconductor substrate production plant in Vietnam and are also reviewing additional investment," said Kyung Eun-kook, chief financial officer (CFO) of LG Innotek. "Through expanded capital expenditure (CAPEX), differentiated technological capabilities and the AI transformation (AX) of our production processes, we will firmly establish the package solutions business as a core operation of the company."
