Third-quarter 2026 earnings

Sales reach 6.37 trillion won; operating profit at 94.8 billion won

Camera module supply expands for new iPhone models

Demand for high-value semiconductor substrates continues to grow

Exchange rate gap between material purchases and product shipments weighs on profit

LG Innotek's headquarters in Magok, Gangseo-gu, Seoul. [LG Innotek]
LG Innotek's headquarters in Magok, Gangseo-gu, Seoul. [LG Innotek]

LG Innotek surpassed 6 trillion won ($4.54 billion) in quarterly sales for the first time, but a sharp drop in the won-dollar exchange rate cut its operating profit by 53.4% from a year earlier.

The company said Tuesday its third-quarter sales rose 18.6% year-on-year to 6.37 trillion won, while operating profit fell 53.4% to 94.8 billion won, based on preliminary figures.

A company official said the expansion of mobile camera module supply — driven by the start of mass production for a key customer's new models — along with steady growth in demand for high-value semiconductor substrates, including RF-SiP (radio frequency system-in-package), FC-CSP (flip-chip chip-scale package) and FC-BGA (flip-chip ball grid array), contributed to the sales increase.

However, the official added that operating profit declined from a year earlier because the won-dollar rate fell sharply between the time raw materials were purchased and the time finished products were shipped.

By business segment, the optical solutions division posted sales of 5.4 trillion won, up 20.6% year-on-year, driven by expanded supply of high-value camera modules for new iPhone models. Growth in automotive camera supply targeting North American customers also contributed to the segment's performance.

The package solutions division recorded sales of 481.8 billion won, up 10.1% from a year earlier. Solid demand for semiconductor substrates such as RF-SiP and FC-CSP, combined with increased FC-BGA supply for PC central processing units for global customers, drove the gain.

The mobility solutions division posted sales of 481.1 billion won, up 6.8% year-on-year. Sales of key product lines including automotive communication modules and lighting grew from a year ago, and the company also made advances in new business areas such as automotive application processor modules and digital keys.

LG Innotek said it plans to keep focusing on high-margin, high-value products. In the package solutions division, the company is pursuing factory scale-ups for high-value semiconductor substrates such as FC-BGA and reviewing additional domestic and overseas investment to meet rapidly growing market demand.

The company plans to enter the market for high-layer, large-area substrates for AI accelerators and servers in stages by 2028. In RF-SiP, it aims to consolidate its position as the global leader by leveraging differentiated technologies such as copper pillar (Cu-Post) structures, while FC-CSP is expanding its application from mobile application processors into memory chips.

The optical solutions division is focused on raising productivity through process automation and intelligence based on AI transformation initiatives, and plans to maximize cost competitiveness by internalizing key components and diversifying global production sites.

The mobility solutions division plans to strengthen competitiveness in high-value product lines such as automotive communication modules and lighting, optimize global production operations, and expand new businesses including automotive application processor modules and digital keys.


joze@heraldcorp.com