LG Innotek has officially unveiled its ‘Dream Factory,’ a production hub for high-value semiconductor substrates known as FC-BGA (Flip Chip Ball Grid Array), which is being cultivated as a next-generation growth engine. This facility is a smart factory integrated with advanced IT technologies and is positioned as a key site for a leap into the global semiconductor substrate market.

In 2022, LG Innotek made a decisive entry into the FC-BGA business by acquiring LG Electronics’ Gumi Plant No. 4 to establish the Dream Factory. The facility spans a total area of 26,000 square meters and has been in full-scale mass production since February of last year.

FC-BGA substrates are ultra-precise components where even minute foreign substances can cause defects. Minimizing contact between personnel and products during the production process is crucial. To achieve this, LG Innotek has implemented a fully automated and unmanned system at the Dream Factory. In fact, apart from essential personnel responsible for equipment maintenance, human involvement in the production line is nearly nonexistent.

Dozens of autonomous mobile robots (AMRs) are responsible for transporting raw materials to processing equipment and loading finished products onto storage units. The process of removing protective films is also handled by robots, which prevents scratches and dust that could affect product quality. A non-touch system has been established across all processes, significantly reducing handling errors by workers.

The Dream Factory collects over 200,000 production data points daily, generating big data totaling around 100GB for AI analysis. LG Innotek operates an AI quality management system that automates defect prediction and inspection based on this data. Notably, deep learning-based vision recognition technology is applied in the Automated Optical Inspection (AOI) process, allowing for the detection of minute defects within 30 seconds.

A system for real-time sharing of inspection data with customers has also been implemented. The Line Quality Control (LQC) system automatically assesses various customer specifications, not only detecting circuit defects but also validating size and thickness, thereby ensuring ‘quality transparency’ and enhancing customer trust.

“Through AI vision inspection, we have reduced lead time by up to 90% and decreased sampling personnel by over 90%,” said an official from LG Innotek. “Additionally, our automated defect sorting system has cut failure costs (F-cost) by more than half.”

Given that the production conditions are critical to quality, optimal equipment settings are essential for FC-BGA production. LG Innotek utilizes digital twin technology to set up processing equipment through virtual simulations, significantly shortening the initial ramp-up period for mass production.

The Line Monitoring System (LMS) is designed to provide a comprehensive view of real-time operational status, production performance, and equipment anomalies. The integrated control room can respond immediately based on this data.

LG Innotek plans to introduce an intelligent quality management system (i-QMS) that automatically detects and corrects quality anomalies in production by 2026. They also aim to develop a customer response platform linked with digital twin technology to share real-time insights throughout the product development and production processes.

With 50 years of expertise in substrate materials and components, LG Innotek successfully mass-produced FC-BGA for PCs targeted at major North American tech clients last year. This year, they are set to enter the PC CPU market, followed by the server FC-BGA market in 2026, intensifying their efforts in the high-end market.

Having already introduced edge coating equipment necessary for the production of server products, LG Innotek plans to internalize next-generation substrate technologies, including glass core technology based on glass substrates. By 2027, they aim to secure technologies such as Redistribution Layer (RDL), die embedding technology, multi-layer core (MLC), and glass core technology to enhance the competitiveness of their high-value products.

Kang Min-seok, head of the substrate materials division (vice president), emphasized, “Centered around the Dream Factory, we will provide differentiated value to global customers and aim to grow the FC-BGA business to a scale of trillions by 2030.”

According to Fujifilm’s Comprehensive Research Institute, the global FC-BGA market is expected to double from $8 billion (approximately 11.7 trillion Korean Won) in 2022 to $16.4 billion (approximately 24 trillion Korean Won) by 2030.

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