LG Chem Targets ₩2 Trillion in Electronic Materials by 2030, Forms New R&D Unit for Semiconductors and Auto Parts

LG Chem has announced a goal to double its electronic materials business revenue to ₩2 trillion by 2030.

This strategy aims to capitalize on soaring demand for AI semiconductors and supportive government tax policies, while offsetting the slump in its petrochemical business.

To achieve this, the company is establishing a new R&D organization focused on semiconductors and automotive components to accelerate technological development.

LG화학

LG Chem has set an ambitious goal to double its electronic materials revenue to ₩2 trillion by 2030.

This strategic pivot isn't happening in a vacuum. It’s a direct response to two powerful forces: the explosive growth in the AI industry and a simultaneous downturn in the company's traditional petrochemical business. By focusing on high-value materials for semiconductors and automotive parts, LG Chem aims to build a new, more resilient growth engine.

So, what's driving this confidence? First, the AI semiconductor boom is creating unprecedented demand. AI chips require HBM (High Bandwidth Memory), which in turn needs sophisticated advanced packaging materials. Major players like SK hynix are making massive investments, such as a ₩19 trillion advanced packaging plant and an ₩11.9 trillion order for EUV equipment. This signals strong, long-term demand for materials like insulating films (PID), adhesives (DAF), and substrates (CCL), which are all part of LG Chem's portfolio.

Second, strong government support is providing a significant tailwind. The South Korean government's 'K-CHIPS Act' has expanded tax credits to include new materials and advanced packaging. Additionally, a special law was passed to support the build-out of essential infrastructure like power and water for semiconductor facilities. These policies lower the financial risk and create a more favorable environment for LG Chem's investments.

Finally, this move is the culmination of LG Chem's long-term strategy. The company has been steadily building its capabilities, unveiling a portfolio of key packaging materials and forming strategic partnerships, like the one with ZEISS for next-generation holographic windshields. The creation of a dedicated R&D organization for semiconductors and automotive components is the logical next step to execute this well-laid plan.

HBM (High Bandwidth Memory): A type of high-performance memory essential for AI processors. It involves stacking memory chips vertically, which requires advanced materials for bonding and insulation.
Advanced Packaging: A set of techniques used to combine multiple semiconductor chips into a single, more powerful device. It's a critical bottleneck and area of innovation in the AI era.
Petrochemicals: Chemicals derived from petroleum. This has been a core business for LG Chem, but it is currently facing challenges from oversupply and weak demand.