Chip Talk > How LG Innotek's Dream Factory is Revolutionizing FC-BGA Production
Published May 12, 2025
Innovation in semiconductor manufacturing is seeing new heights, courtesy of LG Innotek's latest venture—its state-of-the-art Dream Factory. Located in the Gumi facility previously owned by LG Electronics, this factory is set to position LG at the forefront of the Flip Chip Ball Grid Array (FC-BGA) production, with ambitions to escalate it into a $700 million business by 2030. Let's take a closer look at what makes this factory a beacon of technological advancement and why it matters in the increasingly competitive semiconductor industry.
Explore more about LG's Dream Factory here.
Spanning 26,000 square meters, the Dream Factory is not just expansive; it's also a model of operational excellence powered by advanced technologies. Envisioned as a smart factory, it leverages artificial intelligence (AI), deep learning, robotics, and digital twin technologies to streamline its operations, reduce waste, and enhance quality.
One of the key operational strategies of the Dream Factory is its near-total automation. To eliminate defects often introduced by human contact, LG Innotek has engineered a system where interaction with personnel is minimized. The use of autonomous mobile robots (AMRs) to manage materials and handle logistical tasks is a testament to LG's commitment to high precision and reduced human error. The entire production and logistics processes are unmanned, with robots ensuring a smooth, defect-free operation, contributing significantly to efficiency and reliability.
The factory's quality assurance is another area where technology plays a pivotal role. Data is king here, with over 200,000 files and 100GB of production-related data generated daily. AI-enhanced Automated Optical Inspection (AOI) systems quickly identify micro-level defects, ensuring only pristine products are delivered to customers. This automation not only speeds up the inspection process but also provides transparency, with customers receiving real-time quality updates, thus boosting confidence in product reliability.
Digital twin technology is central to the Dream Factory's operations. By simulating production conditions and environments in a virtual model, the factory ensures optimal settings for mass production are achieved before actual implementation. This approach dramatically cuts down the ramp-up time, improving initial production yields and throughput efficiency.
Digital twins also aid in real-time monitoring via the Line Monitoring System (LMS), which allows operators to oversee production, product movement, and equipment health, ensuring quick responses to any deviations or faults.
Looking forward, LG Innotek has ambitious plans to expand and further develop its technological capabilities. By 2027, it aims to integrate additional technologies such as re-distribution layer (RDL) and multi-layer core (MLC) technologies to minimize production costs and maximize substrate capabilities.
The dream of turning the FC-BGA operation into a $700 million business by 2030 reflects LG Innotek's strategic approach to leverage its technological prowess to capture significant portions of the high-demand semiconductor substrate market. The global need for high-performance substrates, anticipated to grow from $8 billion in 2022 to $16.4 billion by 2030, underscores the potential for value creation.
LG Innotek's Dream Factory symbolizes the future of semiconductor manufacturing—where advanced automation, data-driven insights, and robust quality controls coalesce to forge a new era of high-performance, defect-free production. It represents how industry leaders are not just keeping pace but are poised to redefine the standards of manufacturing excellence in semiconductor substrates.
For professionals and enthusiasts, following the developments at LG's Dream Factory will provide valuable insights into the innovations propelling the semiconductor industry forward.
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