LG Innotek Signs MOU for Gwangju Plant Expansion to Scale Up New Business

Expansion of Automotive AP Module Production Line, a Key Vehicle Semiconductor Component
"Strengthening Competitiveness in New Business and Contributing to Balanced Regional Development"

LG Innotek announced on January 13 that it has signed an investment agreement (MOU) with Gwangju Metropolitan City for the expansion of its plant.

LG Innotek Gwangju Plant Exterior. LG Innotek

The investment amounts to approximately 100 billion won. LG Innotek will use this funding to expand its Gwangju plant as part of its efforts to grow new business areas. The new factory is scheduled for completion in December this year and will include an additional production line for automotive application processor (AP) modules. Upon completion, the total floor area of LG Innotek's Gwangju plant will reach 97,000 square meters.

The automotive AP module is a new business field that LG Innotek launched last year. This product serves as a core component that acts as the brain of a vehicle, similar to a computer's central processing unit (CPU). Installed inside vehicles, it provides integrated control for automotive electronic systems such as advanced driver assistance systems (ADAS) and digital cockpits.

With the advancement of autonomous driving and connected cars, the global automotive AP module market is expected to grow by 22% annually. However, despite this growth, there are only a handful of manufacturers. Leveraging its differentiated technology and mobility solutions business capabilities, LG Innotek is rapidly securing a leading position in the market.

Since the end of last year, LG Innotek has already been supplying automotive AP modules to global semiconductor companies. In addition, the company is actively engaging in promotions to secure additional customers. Through this investment, LG Innotek aims to further strengthen its competitiveness in the automotive AP module business and solidify its market advantage.

Moon Hyuksoo, CEO of LG Innotek, stated, "Since its completion in 1985, the Gwangju plant has played a pivotal role as the 'mother factory' of LG Innotek's mobility solutions business, which drives the company's growth. As a strategic hub that forms the foundation of our core business, we will do our utmost to create outstanding value for our customers while growing together with the Gwangju community and our partner companies."

Kang Gijung, Mayor of Gwangju Metropolitan City, said, "LG Innotek's latest investment is highly meaningful in terms of balanced regional development through non-capital and local investments. We expect this investment to serve as a catalyst for Gwangju's 'future automotive parts and materials industry,' and we will actively support it to invigorate the local economy, including the creation of new jobs."

Meanwhile, LG Innotek's Gwangju plant was established in April 1985 and currently employs about 900 people. As a core production base for the mobility solutions business, it manufactures automotive communication, lighting, and camera modules.

Currently, LG Innotek operates a total of five business sites in Korea, including Gwangju Metropolitan City, Gumi in North Gyeongsang Province, Paju and Ansan in Gyeonggi Province, and Magok in Seoul, and has continued to make significant investments every year.

In March last year, the company signed an investment agreement (MOU) worth 600 billion won with North Gyeongsang Province and Gumi City. LG Innotek plans to use this investment to expand the flip-chip ball grid array (FC-BGA) mass production line and install new facilities for high-value-added camera module production at the Gumi plant by the end of this year.