LG Chem has announced a significant strategic shift to bolster its advanced materials business, driven primarily by the burgeoning artificial intelligence sector. By 2035, the company will invest 15 trillion South Korean won into research and development, with a specific focus on high-value materials. This decision comes as global demand for specialized components in semiconductor packaging, mobility, and robotics escalates, fueled by the rapid integration of AI across industries.
The core of LG Chem's investment strategy is to allocate approximately 70 percent of its R&D budget to "cultivation businesses." These future-oriented areas include semi-conductors, where the focus will be on materials for advanced packaging, such as adhesives, low-dielectric materials, thermal management solutions, and glass substrates. Additionally, the investment will support advancements in mobility and robotics components, as well as the development of novel oncology drugs.
The financial targets are ambitious. LG Chem aims for a double-digit operating profit margin and targets 2 trillion won in sales for its electronics materials business alone by 2030. To accelerate execution, a dedicated organization for new business, operating directly under the Chief Executive Officer, will lead these strategic initiatives. This aligns with the broader semiconductor market trend where materials innovation is critical for performance in the AI era. For context, the global advanced semiconductor packaging market is projected to reach over 60 billion US dollars by 2030, highlighting the massive growth potential LG Chem is targeting.
