LG Innotek, a leading South Korean electronics parts maker, will supply high-performance chip substrates for AI devices to global Big Tech companies, Intel and NVIDIA, for the first time. The company has passed quality tests for its AI chip substrate, the flip-chip ball grid array (FC-BGA), and will soon begin shipments. These substrates will be used in graphics processing units (GPUs) for servers.

FC-BGA substrates connect high-density semiconductor chips to the mainboard, transmitting electrical signals and power. They are favored for high-performance CPUs and GPUs due to their high-density circuit connections. As demand for high-density circuit substrates increases, FC-BGA is replacing traditional substrates in AI, autonomous driving, and computer servers.

Analysts expect LG Innotek to narrow the market share gap with bigger competitors like Japan’s Ibiden and Shinko Electric, Taiwan’s Unimicron Technology, Korea’s Samsung Electro-Mechanics, and Austria’s AT&S. The global FC-BGA substrate market is projected to grow from $8 billion in 2022 to $16.4 billion by 2030.

Previously reliant on Apple for camera module sales, LG Innotek is diversifying into AI chip substrates, advanced driver assistance systems, and vehicle lighting. Apple’s share of LG Innotek’s camera module sales dropped from 85% in 2022 to 77% last year.