LG Innotek to expand flip-chip BGA, camera module lines at $1 bn

[Source: LG Innotek Co.]

LG Innotek Co., materials and component unit of South Korean conglomerate LG Group, will spend 1.4 trillion won ($1.07 billion) to build manufacturing lines for flip-chip ball grid array (BGA) and camera modules upon increased orders from global companies, including its primary client Apple.

The company signed a memorandum of understanding with North Gyeongsang Provincial government and Gumi city office to add flip-chip BGA and camera module lines to its Gumi plant in Gumi plant in North Gyeongsang Province, it said Wednesday.

LG Innotek acquired LG Electronics’ Gumi A3 compound that can host five factories for 283.4 billion won last month.

The company earlier this year pledged 1.06 trillion won for the optic solutions business and 413 billion won for the flip-chip BGA business within the year.

[Source: LG Innotek Co.]

As many as 1,000 new jobs are expected to be created with the latest investment in Gumi, the company estimates.

Flip-chip BGA is a semiconductor packaging solution that utilizes the controlled collapse chip connection technology for its die to substrate interconnection. It provides design flexibility for much higher signal density and functionality into a smaller die and packaging footprint.

Demand for flip-chip BGA has been fast rising to overwhelm capacity.

LG Innotek has kept its lead in the global rigid-flex system in package (RF-SiP) market with similar production process to flip-chip BGA. Based on the technology, it aims to actively enter into the flip-chip BGA market.

LG Innotek shares fell 1.16 percent to close Thursday at 340,500 won in Seoul trading.

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