LG Innotek reported a sharp increase in second-quarter earnings, with operating profit rising more than twentyfold to 245.8 billion won ($167.6 million), as strong sales of camera modules and semiconductor substrates offset the typical seasonal slowdown in its mobile components business.

Revenue for the April-June period rose 40.5 percent from a year earlier to a record 5.53 trillion won, exceeding market expectations. Net profit reached 169.7 billion won, marking a return to profit from the same period a year earlier.

The results came in well above analysts’ forecasts. According to a consensus compiled by FnGuide, analysts had expected LG Innotek to post operating profit of 152.6 billion won on revenue of 4.87 trillion won.

The company attributed the performance to steady demand for smartphone camera modules and strong sales of premium semiconductor substrates, two areas closely tied to demand for higher-spec mobile devices and advanced electronics components.

"Despite the seasonal slowdown, demand for mobile camera modules remained solid, while shipments of high-value semiconductor substrates, including RF-SiP, FC-CSP and FC-BGA, continued to increase," an LG Innotek official said.

By business segment, the optical solutions division, LG Innotek’s largest business, generated 4.52 trillion won in revenue, up 48 percent from a year earlier. Revenue from the package solutions business increased 20 percent to 498.4 billion won, supported by demand for semiconductor substrates. The mobility solutions business posted revenue of 510.9 billion won, up 10 percent, helped by stronger sales of automotive lighting and communication modules.

The segment mix underscores LG Innotek’s continued reliance on optical components while showing growth in package substrates, which are used to connect and support semiconductors in electronic devices. The company’s mobility solutions business also provides exposure to automotive electronics, including lighting and communications modules.

For the first half of the year, LG Innotek’s revenue totaled 11.06 trillion won, exceeding the 10 trillion won threshold for the first time on a first-half basis.

The company also indicated that it is preparing further investment in its semiconductor substrate operations as demand continues to recover.

"To meet rapidly growing demand amid the semiconductor upcycle, we have begun expanding our semiconductor substrate manufacturing facility in Vietnam and are also reviewing additional investment," Chief Financial Officer Kyung Eun-kook said.