KB Securities said LG Innotek, a South Korea-based components maker, could benefit from stronger demand for iPhone components and AI semiconductor substrates.

The brokerage maintained its buy rating and forecast operating profit of 1.3 trillion won (US$858 million) this year and 1.6 trillion won (US$1.06 billion) in 2027.

KB Securities said a higher mix of premium iPhones could lift LG Innotek’s optical solutions business as Apple expands its AI ecosystem, increasing demand for higher-value parts such as camera modules.

That matters because LG Innotek is a major supplier of iPhone camera modules and remains reliant on Apple.

On substrates, LG Innotek has said it will develop FC-BGA, or flip-chip ball grid array, as a growth driver.

Its Gumi plant started mass production in February 2024, while the company prepares to enter the high-end server FC-BGA market by 2026.

🔗 Source: The Chosun Daily

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