LG Innotek Co., an electronics parts manufacturer under South Korea’s LG Group, will aim to raise its revenue in the car electronics business to 5 trillion won ($3.74 billion) within the next five years, according to its Chief Executive Officer Moon Hyuk-soo.

“Currently, we are generating 2 trillion won in revenue from car electronics and vehicle camera businesses,” Moon told reporters after a shareholders’ meeting on Thursday. “However, we aim to increase this figure to 5 trillion won within five years.”

With the outstanding order balance in the car electronics sector reaching the 13 trillion won mark, Moon expressed confidence that securing more orders will allow LG Innotek to achieve its 5 trillion won revenue target.

LG Innotek’s differentiation strategy focuses on the automotive industry.

“LG Innotek is concentrating on autonomous driving and Advanced Driver Assistance Systems (ADAS),” Moon said. “The difference lies in whether we focus on the system or on camera modules,”

Regarding new business ventures, LG Innotek is emphasizing artificial intelligence (AI) and robotics.

Moon noted that the company will soon demonstrate tangible results in AI-related businesses.

For the extended reality (XR) component business, however, Moon noted that the hardware differentiation was insufficient due to the lack of growth in software or XR ecosystems, indicating ongoing preparations over the next four to five years.

Within the realm of robotics, LG Innotek is particularly interested in the humanoid robot market.

”LG Innotek has much to contribute in the field of sensing and control technology for humanoid robots,“ Moon said.

The CEO also marked urban air mobility (UAM) and space industries as future growth areas. Moon pledged efforts to dominate the flip chip ball grid array (FC-BGA) market.

LG Innotek entered the FC-BGA business in 2022, establishing production facilities at the Gumi Plant 4, equipped with state-of-the-art facilities. Mass production at the plant started last month.

By Seong Seung-hoon and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]