FCBGA war is imminent, LG Innotek will invest heavily next year

According to media reports, LG Innotek plans to expand its investment scale next year to strengthen its competition with Samsung in the flip chip ball gate array package carrier board (FCBGA) market.

The source pointed out that LG announced at the beginning of this year that it will invest 413 billion won in FCBGA substrates, and will continue to invest in stages in the future to expand the scale of PC, communications, and automotive substrates.

LG Innotek is expected to start mass production of FCBGA as soon as next year, and the monthly revenue is expected to inject 10 billion won, which will help LG Group to expand investment in FCBGA.

The report pointed out that the market still believes that LG Innotek's planned investment of 413 billion yuan is insufficient and can only produce niche market products. If LG Innotek wants to compete with Samsung, it needs to invest at least one trillion yuan.

Samsung announced at the end of last year that it would invest 1 trillion won in FCBGA, and when LG announced its entry into the market, Samsung followed up and expanded the investment scale to 1.9 trillion won.

Previously, FCBGA packaging revenue was expected to reach $12 billion in 2025 from $10 billion in 2020, driven by AI, data centers, and HPC, according to Yole.