Seoul, April 20, 2025 – LG Innotek has ambitious plans to grow its Flip Chip Ball Grid Array (FC-BGA) business into a multi-billion-dollar sector by 2030. The company aims to leverage cutting-edge AI automation technologies to meet the growing demand for advanced semiconductor substrates used in PC CPUs, GPUs, and other high-performance chips.

On April 17, 2025, LG Innotek showcased its state-of-the-art production processes at its Dream Factory in Gumi, South Korea. The factory's impressive capabilities were demonstrated during a tour where the company's executives highlighted how advanced robotics and AI systems are used to streamline operations and ensure high product yields. This event marked a significant milestone in the company's efforts to transform the manufacturing process for FC-BGA substrates.

At the Dream Factory, dozens of automated material handling robots transport raw materials and components through the production line. AI-driven deep learning vision systems automatically inspect each product for defects, ensuring that even the slightest imperfections are detected without human intervention. These technologies have allowed LG Innotek to reduce human involvement significantly, optimizing production efficiency and product quality.

“We've reduced production time by up to 90% and decreased the number of staff needed for sampling inspections by 90%,” said Park Jun-su, LG Innotek's FS Production Team Manager. “Our AI-based vision inspection system is the key to achieving high yields and ensuring our products meet exacting customer specifications.”

The Dream Factory is designed to minimize human contact throughout the entire FC-BGA production process. Given the highly sensitive nature of FC-BGA substrates, even minor defects—such as a tiny scratch or human breath—can result in defects. To mitigate this, LG Innotek has integrated state-of-the-art AI, robotics, and deep learning systems into every step, from raw material handling to final inspection.

The company's ultimate goal is to automate the entire production process. It plans to eliminate the need for human intervention in both simple tasks and more complex engineering and quality control roles. By 2026, LG Innotek aims to implement a real-time process intelligence system that will automatically detect and correct any quality issues, further improving yield and operational efficiency.

Looking ahead, LG Innotek aims to enter the PC CPU FC-BGA market this year and is targeting server substrate production by 2026. FC-BGA production is particularly complex, with yield rates often as low as 50% due to the difficulty of manufacturing high-end substrates. By employing AI-driven inspection and digital simulations, LG Innotek plans to improve these yields, positioning itself as a strong competitor in the market.

The company solidified plans to grow its FC-BGA business into a multi-billion-dollar sector by 2030. This comes after its successful expansion into the global market, with initial shipments of FC-BGA substrates to major tech firms beginning in late 2024. The global FC-BGA market is expected to grow from $8 billion in 2022 to $16.4 billion by 2030, and LG Innotek is determined to capture a significant share of this rapidly expanding industry.In addition to AI inspection systems, the company also employs a digital twin system that simulates production processes in a virtual environment before actual manufacturing begins. This technology helps identify potential issues early, optimizing equipment setup and reducing ramp-up time by nearly half.

Vice President Kang Min-seok, head of LG Innotek's Substrate Materials Division, emphasized, “The Dream Factory leverages all of LG Group's technological capabilities to not only improve yield rates but also significantly reduce labor requirements—by as much as 50% compared to competitors.” The company is poised to become a global leader in the FC-BGA market and is actively exploring additional investments to further expand its production capacity.