LG Innotek said on July 27 it posted second-quarter revenue of 55.27 trillion won and operating profit of 245.8 billion won. Revenue rose 40.5 percent and operating profit climbed 2,057 percent from a year earlier.

Second-quarter revenue was a record for a second quarter. First-half revenue, combined with 55.35 trillion won in the first quarter, totalled 110.62 trillion won, topping 100 trillion won for the first time on a first-half basis.

From the previous quarter, revenue fell 0.1 percent and operating profit slipped 16.8 percent. First-quarter operating profit was 295.3 billion won.

Demand for mobile camera modules stayed solid despite a seasonal off-peak. The company said strong supply of high value-added semiconductor substrates such as RF-SiP (radio frequency-system in package), FC-CSP (flip chip-chip scale package) and FC-BGA (flip chip-ball grid array) was also continuing. Mobility components, including vehicle camera, communications and lighting modules, also contributed to revenue growth.

By business unit, the Optical Solutions Business posted revenue of 45.18 trillion won, up 48 percent from a year earlier. Demand continued to center on high value-added mobile camera modules despite the off-peak season, while vehicle camera revenue also rose on supplies of new models to major customers.

Revenue from the Package Solutions Business rose 20 percent from a year earlier to 498.4 billion won. Growth was driven by increased demand for high value-added semiconductor substrates such as RF-SiP and FC-CSP, while FC-BGA also helped improve results on expanded supplies to global customers.

The Mobility Solutions Business posted revenue of 510.9 billion won, up 10 percent from a year earlier. Revenue rose evenly across product lines, centered on high value-added products such as vehicle lighting and communications modules. The company said it plans to improve profitability by expanding the share of high value-added products and improving resource efficiency, while seeking growth through new businesses such as vehicle AP modules.

LG Innotek is strengthening its core optical and package businesses as part of efforts to bolster its portfolio of high-profit businesses, while also accelerating nurtured businesses including physical AI (artificial intelligence) businesses centered on autonomous driving and robots. It is placing particular emphasis on expanding the Package Solutions Business.

Kyung Eun-kook (경은국), CFO and executive vice president, said the company has begun expanding its semiconductor substrate production plant in Vietnam to respond to surging demand amid a semiconductor boom, and is also reviewing additional investment. He said it will firmly establish the Package Solutions Business as a core business through expanded capital expenditure, differentiated technology such as Cu-post, and applying AX (AI transformation) to production processes.