LG Chem to Invest $9.7 Billion in Semiconductor, Robotics Materials

South Korea's LG Chem said it plans to invest nearly $10 billion over the next decade to expand into high-value materials tied to the artificial intelligence boom, signaling a strategic shift beyond batteries and traditional chemicals.

The Seoul-based company intends to spend about $9.7 billion — roughly 15 trillion won — on research and development through 2035. The money will be concentrated on advanced materials for semiconductors, mobility, robotics and anticancer drugs, the company said.

Executives framed the initiative as a response to shrinking profitability in the company's core petrochemical operations, where global oversupply and intense competition have squeezed margins. Through the buildout, LG Chem pledged to reach a double-digit operating profit margin by the end of the decade.

Alongside its internal, or organic, growth plans, the firm said it will chase external opportunities including mergers and acquisitions, and has set up a dedicated team to pursue such deals.

CEO Kim Dong-chun unveiled the long-term strategy at a town hall meeting, urging staff to reinforce existing businesses while investing in future growth engines. He described the goal as leaping forward into a "technology-driven converting company" that turns accumulated expertise into differentiated, high-margin products.

The announcement came against a turbulent market backdrop. LG Chem's shares fell 9.75% on the Seoul bourse, roughly in line with a broad market slide as the benchmark KOSPI dropped nearly 10%. LG Chem is a major subsidiary of LG Group, whose holdings also include LG Electronics and LG Display.