South Korea’s LG Innotek Co., a major contractor for Apple Inc., said on Thursday it plans to spend 375.9 billion won ($268.4 million) next year on a new camera module factory in Vietnam under construction.
The investment is part of its budget of 1.3 trillion won unveiled last year to more than double the capacity of its Vietnamese subsidiary by building a new plant at the production complex in Hai Phong, the country’s key industrial city.
LG Innotek said that it aims to deal with new models of the optics solution industry and improve its competitiveness in a filing to the South Korean financial regulator. Its optics solution division supplies camera modules to the iPhone series.
The company is scheduled to complete the facility’s construction in the fourth quarter of this year for commercial operations in 2025.
Its Vietnamese subsidiary, which opened in September 2016, mainly produces smartphone camera modules. A camera module is an image sensor integrated with a lens, control electronics and an interface such as CSI, Ethernet or plain raw low-voltage differential signaling.
LG Innotek’s optics solution division generated sales of 12 trillion won in the third quarter, making up 82.6% of the company’s total revenue.
By Eui-Myung Park
uimyung@hankyung.com
Jongwoo Cheon edited this article.
