CES 2026 LG Innotek shifts from parts supplier to solutions provider

LG Innotek CEO Moon Hyuk-soo speaks during an interview with reporters in Las Vegas, Wednesday. Courtesy of LG Innotek

LAS VEGAS — LG Innotek CEO Moon Hyuk-soo said Wednesday (local time) that the company is accelerating its shift from a traditional components supplier model to a solutions-oriented business focused on profitability, with the package substrate segment serving as a key growth driver.

“LG Innotek is no longer a parts company,” Moon said during an interview with reporters on the sidelines of the CES 2026 tech fair.

“This year, we will reorganize our business structure toward a high-value, high-profit, high-performance portfolio.”

Moon explained that the company’s business now focuses on three main areas: sensing, substrates and control. These technologies, originally developed for consumer electronics, are now being applied to cars, robots, drones and satellites.

“In broad terms, everything we do falls into sensing, substrates and control,” Moon said. Control technologies include systems that manage electricity flow in electric vehicles, as well as motor and steering units.

Rather than just supplying parts, LG Innotek now combines hardware with software and middleware to provide ready-to-use solutions for its customers. “We provide products in a form that customers can immediately use,” Moon said.

Last December, the company reorganized its divisions to reflect this shift, renaming business units to Optics Solution, Package Solution and Mobility Solution. Moon said the traditional model of supplying individual components based on customer specifications “is losing competitiveness.”

At CES 2026, LG Innotek showcased system-level solutions rather than standalone products. For autonomous vehicles, the company can supply up to 16 products at once and show how they work together. For electric vehicles, LG Innotek demonstrated control technologies that can reduce heavy wiring harnesses by using wireless solutions.

“Reducing harnesses makes vehicles lighter and frees up space,” Moon said. “That can improve efficiency and allow for larger batteries.”

Moon highlighted the package solution business as the company’s most profitable segment and said it will be a focus this year.

“We will increase investment and capacity,” he said, noting that utilization rates are approaching full levels. According to the company, package solutions already account for more than 20 percent of LG Innotek’s operating profit, and profitability continues to improve.

Robotics is another emerging growth area, as evidenced by this year’s CES. LG Innotek is supplying key components — including sensing modules, control solutions and substrates — for service robots and industrial automation systems, with related revenue already reaching hundreds of billions of won.

“Robots are another area where our existing technologies can be effectively applied,” Moon said.

Since last year, LG Innotek has been working with Boston Dynamics in the United States to develop vision sensing systems for robots, and is also accelerating commercialization of robot components through collaborations with other global robotics leaders.