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October 16, 2026
📊 LG Innotek Between Apple Uncertainty and a Substrate Breakthrough - 2026.10.16
Hey, it’s Dotori 🌰 Let’s start by drawing the big picture together again today. The starting point for this story is that Samsung Electro-Mechanics did well while LG Innotek stalled [1].
🔗 Let’s start with the big picture
First, we need to talk about Apple. According to a report by MTN Money Today Broadcasting, the smartphone market is being shaken by a sharp rise in memory prices driven by AI, and Apple has also cut component orders due to weak demand for its new iPhones [4]. That has put its key partner LG Innotek on alert. The report says the company is looking for a breakthrough in semiconductor substrates [4].
Structurally, this connection is key. The part of the business facing fewer orders and the part the company is trying to grow are moving at the same time within one company. It’s like a relay baton being passed from Apple to substrates. The question is whether the baton can be handed over in time.
⚙️ Where did the difference in earnings come from?
Newsway noted that Samsung Electro-Mechanics did well in its third-quarter results, while LG Innotek stalled [1]. It said that “AI” and “foreign exchange” made the difference [1]. Even within the same components industry, the results seem to have diverged depending on how closely companies are tied to AI and how much they benefited from currency movements. However, the source did not provide detailed figures showing how much each factor contributed, so let’s just keep the overall direction in mind.
There’s also a forecast reported by one outlet: Samsung Electro-Mechanics and LG Innotek are expected to post double-digit revenue growth side by side in the third quarter of 2026 [2]. But this is a conditional view from the forecaster, not results confirmed by the companies. As the headline suggests, a revenue growth forecast and profitability are two very different things, so we need to look at them separately [2].
📚 Optics and substrates, the weight of two pillars
There’s a focus on profitability in the optical solutions business [3]. A video also came out that day in which CEO Kim Dae-jun discussed the difference in outlook for Samsung Electro-Mechanics and LG Innotek, but the video summary confirms only that he discussed the difference in their outlooks [5].
My take on the value chain, ranked by priority, is this: AI semiconductor substrates come first, and optical solutions profitability comes second. Whether substrates can become a real diversification lever that reduces reliance on Apple is still an open question, in Dotori’s view. The stock is hovering around ₩403,500 based on the closing price of the most recent trading day 📈
🏭 Here are the remaining variables
To sum up, what’s been reported is a cut in Apple orders, a difference in third-quarter results, and the search for a breakthrough in substrates. Three questions remain open: What will fill the gap left by reduced Apple orders? How quickly will investment in substrates translate into revenue? And will foreign exchange and AI demand move in the same direction next quarter? So there’s one thing I’m wondering: Can the baton be passed to substrates quickly enough to make a smooth handoff? 🤔
📰 Reference News (3)
Samsung Electro-Mechanics Smiles, LG Innotek Stalls… ‘AI and Foreign Exchange’ Divide Third-Quarter Results - Newsway
뉴스웨이 · 2026.10.15
📰 View originalSamsung Electro-Mechanics and LG Innotek Expected to Grow Third-Quarter Revenue in Tandem… But What About Profitability?
네이버뉴스 · 2026.10.16
📰 View original
LG Innotek Rises 4.11%… Attention on Optical Solutions Profitability - Jobpost (JOBPOST)
네이버뉴스 · 2026.10.16
📰 View original📺 Reference Videos (2)
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