LG Innotek announced on the 13th that it has signed an investment agreement (MOU) with Gwangju Metropolitan City for about 100 billion won and will expand its Gwangju plant. The purpose of this investment is to expand production infrastructure for new business expansion, with the new plant scheduled for completion in December this year.
Once completed, the total floor area of the Gwangju plant will increase to about 97,000 square meters. A new production line for vehicle application processor (AP) modules will be added to the newly expanded plant. Vehicle AP modules, which LG Innotek has been actively pursuing as a new business field since last year, are key components that act as the brain of a car.
This module is used to integrally control vehicle electronic systems such as advanced driver assistance systems (ADAS) and digital cockpits. With the expansion of the global connected car and autonomous driving market, demand for vehicle AP modules is rapidly increasing, and the market is expected to grow at an average annual rate of 22%. Currently, very few companies produce related products, and LG Innotek is accelerating its market dominance based on its differentiated technology and experience in the mobility solution business.
LG Innotek is already supplying vehicle AP modules to global semiconductor companies and is expanding its business to secure additional customers. Through this investment, the company plans to strengthen production competitiveness and supply stability, solidifying its technological dominance in the future car field.
The industry expects this investment by LG Innotek to not only enhance competitiveness in new businesses but also bring about balanced development effects for non-metropolitan areas.
Gwangju Metropolitan City Mayor Kang Gi-jung said, “This investment by LG Innotek will serve as a cornerstone for fostering the future car components (materials, parts, equipment) industry in Gwangju,” and promised active support for creating new jobs and revitalizing the regional economy.
Moon Hyuk-soo, President of LG Innotek, stated, “Since its completion in 1985, the Gwangju plant has played a central role in the mobility solution business,” and added, “We will develop it into a strategic production base for core business, growing together with the local community and partners, maximizing customer value.”
Established in 1985, the LG Innotek Gwangju plant currently employs approximately 900 employees and serves as a core base for the mobility solution business, producing vehicle communication, lighting, and camera modules.
LG Innotek has five domestic locations, including Gwangju, Gumi in Gyeongsangbuk-do, Paju and Ansan in Gyeonggi-do, and Magok in Seoul, continuously making new investments and expanding facilities every year. In March last year, an investment agreement worth 600 billion won was signed with Gyeongsangbuk-do and Gumi City, and efforts are underway to expand the flip-chip ball grid array (FC-BGA) mass production line and build high-value-added camera module production facilities by the end of this year.