LG Innotek is changing its game. They’re moving away from just supplying parts and are now aiming to become a full-service provider that combines both hardware and software. Their big bet for future growth is “physical artificial intelligence” (AI), which includes exciting fields like robotics and self-driving cars.
At a shareholders’ meeting in Seoul, CEO Moon Hyuk-soo laid out this new strategy. He wants physical AI to be a main focus for LG Innotek’s business, with the goal of seeing significant results in the next few years.
“Just winning contracts to supply parts isn’t competitive anymore,” Moon told reporters after the meeting. He explained that LG Innotek plans to use its existing innovative technologies and products to become a company that offers “optimal solutions” that fit what customers need.
LG Innotek already has strong technologies, such as sensing, substrate, and control, which they’ve improved over years of working with global tech clients. Moon sees these technologies as key to their growth. He’s pushing hard into the physical AI market, particularly looking at new opportunities in self-driving technology and robotics to expand what they can do.
Moon mentioned that LG Innotek is already talking to big customers in the United States and Europe about supplying their tech for robot applications. “We’re actively discussing complex sensing modules, including LiDAR and cameras, with major customers in the U.S. and Europe,” he said.
He also noted that they’ve already started early production for physical AI applications like humanoid robots, supplying them in the hundreds. They’re actively working to find and fix any issues that come up in real-world use. Moon expects it will take “about three to four years before the business will generate figures that are meaningful” in terms of revenue.
Earlier this year, Moon had also promised to strengthen the company’s package solutions unit, which has high profit margins. He aims for its profit contribution to match that of the optical solutions business within five years. That division saw its operating profit jump 82% in 2025, reaching 128.9 billion won ($85 million), thanks to strong demand for semiconductor substrates.
To keep up with this growing market, Moon said LG Innotek plans to expand its production capacity. “Our current semiconductor substrates that use glass fiber are almost at maximum capacity,” he explained. “We expect to expand capacity for other substrates used in servers around the second half of next year.” He added that the company is getting ready for this, and once the expansion happens, their total capacity will roughly double.
