LG Innotek and Applied Intuition are partnering to boost autonomous driving sensing module performance, with LG Innotek supplying sensing modules for Applied Intuition’s reference vehicles and simulations, and Applied Intuition providing the software platform, reference vehicles, and simulation tools.

CEO Moon Hyuksoo envisions LG Innotek becoming a global top-tier mobility and robotics sensing solutions provider, signaling a shift from components supplier to a broader solutions player in the physical AI era.

The collaboration aims to turn the virtual sensor into concrete product orders from global carmakers by accelerating development, reducing design complexity, and speeding validation and production timelines.

LG Innotek reported a fourth-quarter operating profit up 31% year over year to 324.7 billion won, with semiconductor substrate demand lifting sales by about 28% in that segment.

Despite growth, the company faces near-term headwinds as automotive components sales slipped slightly year over year amid softer industrial demand and some cyclical weakness.

LG Innotek plans to double semiconductor substrate production and achieve full-capacity operations through 2026 to meet growing physical AI demand.

The company also aims to double FC-BGA server capacity by the second half of next year to address demand from AI data centers.

This strategic shift toward end-to-end solutions aligns with a broader industry trend of component makers moving closer to final products.

A second growth pillar is LG Innotek’s FC-BGA substrate package solutions for high-performance AI chips, which posted strong 2025 results with profits and revenue up notably.

LG Innotek’s mobility order backlog reached a record 19.2 trillion won, with 4.8 trillion won in new mobility contracts signed over the past year, underscoring solid demand for automotive cameras and sensors.

The path to mass adoption hinges on converting the Applied Intuition collaboration into substantial sensor orders and scaled production, while balancing longer-term robotics bets.

The company is developing unified sensing systems that integrate LiDAR and cameras and is engaging customers across North America and Europe.