To Upgrade Business Portfolio
LG Innotek will shut down its high density interconnection (HDI) business and transfer its workforce and resources to semiconductor substrate production.
LG Innotek announced on Nov. 28 that it has decided to put an end to the printed circuit board (PCB) business. The PCB business belongs to the HDI business, accounting for 3.1 percent of the company’s total sales. The company is expected to wrap up PCB production within this year and stop selling PCBs in June next year.
LG Innotek explained that its business was suspended due to its sluggish HDI business stemming from a drop in demand for high-value-added products for mobile devices and intensifying competition. Earlier, the company said it is considering various plans including withdrawing from the HDI business to streamline its substrate business.
LG Innotek plans to zero in on its semiconductor substrate business by transferring some of its resources to its semiconductor substrate business. Its PCB workforce will also be deployed to the semiconductor substrate business.
"We plan to improve our business portfolio by selecting and focusing on businesses that can grow and generate profits," LG Innotek said.