LG Innotek expands high-value business targets
The electronic components maker aims to increase the revenue share of high-value growth businesses by 2030.
The electronic components maker operates through three primary divisions: optical solutions, package solutions, and mobility solutions. The optical solutions segment maintains a global leading position, driven by the adoption of high-specification camera modules and strong sales from major customers. This division represents the largest portion of the company's business, accounting for 82.5% of revenue in the first half of 2026.
Growth in the package solutions segment is linked to rising semiconductor demand as artificial intelligence applications expand. The company reported that this division grew 18% year-on-year during the first half of 2026. The company expects further demand for server substrates as big tech firms increase data center investments due to AI technology innovations.
LG Innotek is shifting its long-term focus toward high-value growth areas, including semiconductor substrates, robotics, and sensing solutions for autonomous driving. The company plans to expand the revenue share of these sectors by 2030. To support this transition, the company is planning investments centered on these new growth businesses and the expansion of its core operations.
Global operations are managed through production entities in five countries, including Vietnam, China, Indonesia, Poland, and Mexico. The company recently updated its infrastructure, with the Vietnam entity starting 3D sensing module production in July 2025 and the Mexico entity starting vehicle LS production in November 2025.
Regarding shareholder returns, the company increased its consolidated payout ratio to 13% for the 2025 fiscal year from 11% the previous year. The company said it intends to gradually expand this ratio to enhance shareholder value regardless of changes in profit size. The company aims to allocate profits toward dividend sources and reinvestments to achieve a return on equity of 15% or more.