LG Innotek 第三季收入突破 6 萬億韓圓，營業利潤減半

LG Innotek’s headquarters in Magok, Seoul. (Photo: LG Innotek)

LG Innotek reported record third-quarter revenue, but operating profit fell by more than half from a year earlier due to exchange-rate fluctuations.

LG Innotek said on Oct. 27 that third-quarter revenue reached 6.3671 trillion won, up 18.6% from a year earlier. It was the company’s highest third-quarter revenue on record and exceeded market expectations. Securities analysts had forecast third-quarter revenue of 6.097 trillion won.

By division, the Optical Solution business, which includes camera modules, generated revenue of 5.4041 trillion won, up 20.6% year on year. Mass production of new models for customers drove increased shipments of high-value-added mobile camera modules. Supplies of automotive cameras to North American customers also increased.

Revenue from the Package Solution business rose 6.8% to 481.8 billion won over the same period. Increased demand for radio-frequency system-in-package (RF-SiP) and flip-chip chip-scale package (FC-CSP) products drove the improvement. The company also expanded supplies of flip-chip ball grid array (FC-BGA) products for PC central processing units (CPUs).

The Mobility Solution business posted revenue of 481.1 billion won, up 6.8%. Sales of key products, including automotive communication modules and lighting components, increased from a year earlier.

Operating profit, however, fell 53.4% year on year to 94.8 billion won, missing market expectations. Securities analysts had forecast third-quarter operating profit of 197.3 billion won.

“The Optical Solution business, which accounts for the largest share of our revenue, was affected by fluctuations in the won-dollar exchange rate,” an LG Innotek official said.

The company purchased raw materials for camera modules shipped in the third quarter during the first and second quarters of 2026. The won-dollar exchange rate climbed as high as 1,561.5 won per dollar during the first half but fell to as low as 1,320.7 won in the third quarter. Although production and sales volumes increased, the company had purchased raw materials earlier at higher prices, weighing on operating profit.

If the exchange rate remains in the 1,300-won range, fourth-quarter results are also expected to be affected. LG Innotek purchased raw materials for products scheduled for fourth-quarter shipment during the first and second quarters of 2026.

LG Innotek plans to improve earnings by focusing on high-margin, high-value-added products. The company will target physical artificial intelligence (AI) businesses, including autonomous driving and robotics.

In FC-BGA, LG Innotek plans to gradually enter high-value-added markets, including high-layer-count and large-area substrates, by 2028. In RF-SiP, the company aims to solidify its position as the market leader through its copper-post (Cu-Post) technology. For FC-CSP, it plans to expand applications beyond mobile application processors (APs) to memory semiconductors.

In camera modules, LG Innotek plans to improve productivity through process automation and intelligent manufacturing based on AI transformation (AX). It also aims to strengthen cost competitiveness by bringing key component production in-house and diversifying production locations. In the automotive business, the company will enhance the competitiveness of high-value-added products, including communication and lighting components, while expanding new businesses such as automotive AP modules and digital keys.