LG Chem has unveiled a major R&D push that signals a clear shift toward higher-value, technology-driven businesses. The company plans to invest KRW 15 trillion in research and development by 2035, with about 70% of that spending focused on growth areas including semiconductor materials, mobility and robotics materials, and anticancer drugs.
This move is part of LG Chem’s broader effort to evolve from a traditional chemicals supplier into an AI-enabled materials company that works more closely with customers on both product performance and manufacturing processes.
The company says this transition is designed to improve profitability and support long-term growth as competition in commodity chemical markets intensifies.
To move faster, LG Chem has also set up a business development organization that reports directly to the CEO. The team will guide both internal R&D and external expansion efforts, including targeted mergers and acquisitions, with the goal of speeding up decision-making and shifting the company toward integrated solutions rather than commodity sales.
A major focus of the plan is semiconductor and electronics materials. LG Chem intends to expand its portfolio with advanced packaging materials and thermal-management solutions, including packaging adhesives, low-dielectric materials, thermal-management materials, and glass substrates. The company aims to significantly grow this business by 2030.
LG Chem is also broadening its mobility materials strategy beyond electric vehicles. The company plans to develop robot structural materials as well as precision actuation and bonding solutions, working closely with customers to create more differentiated and higher-margin products for future mobility and robotics applications.
In pharmaceuticals, LG Chem is continuing to invest in its anticancer drug pipeline through global clinical trials, partnerships, and possible licensing or M&A opportunities. This is part of a wider effort to strengthen commercialization and build a more diversified revenue base.
At the heart of the strategy is a shift from being only a materials supplier to becoming a solutions partner. LG Chem wants to co-develop materials and manufacturing processes with customers, reducing reliance on price-led competition and building a more resilient business model.
The company has also set an ambitious goal of reaching a double-digit operating margin by 2030, supported by a growing share of high-value businesses and efficiency gains from R&D-led innovation.
CEO Dong Chun Kim described the strategy as a necessary next step, combining the strengthening of legacy businesses with deeper investment in semiconductors, mobility, robotics materials, and anticancer drugs to drive future growth and profitability.
The company also highlighted several technical focus areas, including low-dielectric materials for faster signal transmission, thermal management materials for heat dissipation in high-performance electronics, photo-imageable dielectrics, die attach films, and copper-clad laminates. These materials are central to advanced packaging and high-performance semiconductor applications.
