LG Innotek targets XR device market with new substrate

South Korea’s LG Innotek Co. aims to lead the market for components of the extended reality (XR) device industry, which is expected to surge by more than 10 times by 2030 helped by the entry of global tech giants such as Apple Inc. and Samsung Electronics Co.

LG Innotek, a major supplier of camera modules for Apple iPhones, said on Wednesday that it expanded the business of two-metal chip on film (CoF), a package substrate that connects a display and a printed circuit board (PCB) in electronic devices such as wearable devices and smartphones, for the goal.

Two-metal CoF, an advanced product of the existing CoF that implements circuits only on one side, has more than 4,000 circuits formed on both sides with technology to implement ultra-fine circuits on both sides by processing 25 micrometers (μm) holes on a thin film. The smaller the holes are, the more pattern circuits through which electric signals flow can be produced.

“Two-metal CoF with many pattern circuits increases display pixels and maximizes immersive experiences,” said an LG Innotek official. “It is an important part that determines the performance of XR devices.”

LG Innotek’s two-metal CoF with a film of 70 μm thickness is the thinnest among the existing semiconductor substrate. Package substrates are usually thinker than 150 μm. The company’s two-metal CoF is also foldable and rollable to minimize the space of the installation.

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The global two-metal CoF market is dominated by LG Innotek and Stemco Ltd., a joint venture between Samsung Electro-Mechanics and Japan’s Toray Industries Inc.

LG Innoteck plans to concentrate on research and development while expanding marketing activities to win the race.

“We are focusing on technology upgrades to widen the gap with competitors,” said another LG Innotek official. “We will also actively launch promotions for North America and Japan where many XR devices manufacturers locate.”

The company expects demand for the latest product to surge this year as global tech behemoths are set to make forays into the growing metaverse industry, which requires flexible components including displays and chip substrates.

Apple plans to launch XR headsets in the second half, while Samsung teamed up with Qualcomm Technologies Inc. and Google LLC to venture into the XR device market.

XR is a blanket term for a handful of related technologies that include virtual reality (VR), augmented reality (AR) and mixed reality (MR).

The global XR device market was forecast to surge to 215 million units by 2030 from the expected 20.1 million units this year, according to market research firm Strategy Analytics Inc. The world’s XR market was predicted to more than triple to 1,700 trillion won ($1.3 billion) by 2030 from 540 trillion won in 2025, consulting firm PricewaterhouseCoopers (PwC) said.

Write to Ji-Eun Jeong at jeong@hankyung.com
Jongwoo Cheon edited this article.