LG Innotek’s “Dream Factory” in Gumi, North Gyeongsang Province, was in full operation on April 17, producing flip-chip ball grid arrays (FC-BGA), next-generation semiconductor substrates. These substrates are essential for connecting electronic components to semiconductors, enabling the flow of electricity while protecting the components.
At one section of the factory, a robotic arm was peeling off protective film from a panel. This task, which was previously done by hand using sharp tools, is now fully automated. “Skilled workers used to handle the process, but since it was manual, scratches on the panels occasionally occurred,” said a company official. “Now, the robotic arm follows programmed movements, ensuring no defective products are produced.”
The Dream Factory, established in 2022 when LG Innotek entered the FC-BGA market, spans 26,000 square meters—three times the size of a football field. The company aims to compete with leading Japanese firms in the FC-BGA market. To achieve this, LG Innotek has integrated cutting-edge technologies such as artificial intelligence (AI), deep learning, robotics, and digital twin technology. Kang Min-seok, head of the substrate and material business unit, said, “The entire process is automated, making this a ‘four-zero’ factory with no people, defects, breakdowns, or safety accidents. Our goal is to catch up with global competitors in two to three years.”
The factory minimizes human intervention, as even the tiniest foreign particles can cause quality issues in high-precision semiconductor substrates like FC-BGA. Inside the facility, dozens of autonomous mobile robots (AMRs) transport raw materials between production equipment. The robots are automatically instructed according to customer delivery schedules, ensuring materials are delivered to the appropriate equipment. LG Innotek said, “We are currently operating with 50% of the personnel required in traditional factories, and the ultimate goal is full automation.”
AI is also actively used in the factory. Over 200,000 data files, totaling about 100GB—equivalent to about 50 HD movies—are generated daily from the FC-BGA production lines. This data is continuously processed and analyzed by AI to predict defects and optimize inspection systems. The AI can detect tiny flaws that the human eye might miss in just 30 seconds. According to LG Innotek, “AI has reduced lead times by up to 90% and allowed us to cut the workforce for sampling inspections by 90%.” AI is also used for digital simulations to prevent product defects and equipment failures before they occur.
LG Innotek began mass production of FC-BGA substrates in 2023, securing orders from major tech companies, and recently added even more big-name clients. This year, the company aims to enter the PC CPU market and plans to target the server-grade FC-BGA market by 2026.
The company’s competitors include Japan’s Ibiden and Shinko, as well as Taiwan’s Unimicron and Nanya. LG Innotek plans to enhance its competitiveness by leveraging automation and IT technologies to increase yield rates. With the rising demand for high-end semiconductor substrates, the FC-BGA market is expected to expand further. Kang noted, “We plan to grow the FC-BGA business into a trillion-won market by 2030.”
