Key Points:
- LG Innotek is moving from just supplying parts to offering complete solutions.
- Physical AI, like robotics and self-driving cars, is their big bet for future growth.
- They are already talking with big clients in the US and Europe about robot parts.
- The company plans to double its capacity for high-demand semiconductor substrates.
LG Innotek is making a big change. They’re no longer just happy being a company that supplies parts. Instead, they want to become a full-blown solutions provider, combining both hardware and software. Their main focus for future growth? “Physical AI,” which includes exciting areas like robotics and autonomous driving.
During a recent meeting with shareholders in Seoul, CEO Moon Hyuk-soo laid out this new plan. He wants physical AI to be a core part of LG Innotek’s business and expects to see real results in the next few years.
“Just winning bids to supply components isn’t cutting it anymore,” Moon told reporters after the meeting. “We’re going to use our strong technologies and products to become a company that offers the best solutions for what our customers need.”
LG Innotek already has some impressive technologies they’ve built up over years of working with big tech companies. These include sensing, substrate, and control technologies. Moon sees these as key to their growth and is pushing hard into the physical AI market, especially in self-driving cars and robots.
Moon mentioned that LG Innotek is already talking to major customers in the United States and Europe about supplying their tech for robots. “We’re actively discussing complex sensing modules, like LiDAR and cameras, with big customers,” he said.
The company is also ramping up production of parts for humanoid robots. They expect to start mass production of these robot parts around 2027 or 2028. Moon explained, “We’ve already started early mass production for things like humanoid robots, supplying hundreds of them, and we’re working to fix any issues that pop up.” He believes it will take about three to four years for this business to generate significant revenue.
Earlier this year, Moon also promised to boost their high-profit package solutions unit, aiming for its profit contribution to match their optical solutions business within five years. That division saw its operating profit jump 82% in 2025, thanks to high demand for semiconductor substrates.
To keep up with this demand, Moon said LG Innotek will expand its production capacity. “Our existing semiconductor substrates are almost at maximum capacity,” he noted. “We plan to double our total capacity once the expansion happens.”
