ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Electronics

LG Innotek invests $500m to boost iPhone parts output

Camera module supplier to expand South Korea factory with eye on Apple orders

iPhones at the Apple Marina Bay Sands store in Singapore. As smartphones become increasingly ubiquitous, producers are looking to differentiate themselves with better cameras.   © Reuters

SEOUL -- LG Innotek, an affiliate of South Korea's LG Group, plans to invest 547.8 billion won ($496 million) to increase production of camera modules used in iPhones.

The company will expand its factory in South Korea, where it builds the modules using image sensors from Sony and Samsung Electronics. The finished products are shipped to smartphone assemblers like Taiwan's Hon Hai Precision Industry, also known as Foxconn, a main Apple supplier.

LG Innotek's revenue grew 20% last year to 9.54 trillion won. Over 60% of the tally is believed to be tied to iPhones.

The company, which competes with Sharp and other rivals, is particularly well-regarded among smartphone makers for its image stabilization technology. It is making new investments to prepare for new orders from Apple and other companies. There is speculation that it has already signed a new long-term supply contract for iPhones.

Smartphone makers have been focusing more on improving camera quality as the handsets become more of a commodity, with little difference in their processing and display capabilities.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more