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.
