LG Innotek Boosts Camera Module Production in Vietnam, Targets 70-80% Output
LG Innotek, Apple's leading camera module supplier, has completed a significant expansion in Vietnam. The company aims to boost its competitiveness and diversify production sites to rival Foxconn and Cowell. The new V3 plant spans 150,000 square meters and has more than doubled LG Innotek's camera module production capacity in the country.
LG Innotek's CEO, Moon Hyuk-soo, expects the completion of the V3 plant to gradually improve profitability in the camera module sector. The company has invested over $1 billion in Vietnam to enhance its optical solutions production capacity. LG Innotek plans to ramp up production of multi-functional camera modules in Vietnam to stay competitive. The company has commenced commercial operations at the V3 plant, marking a significant milestone in its expansion strategy.
LG Innotek's operating margin on camera modules has been declining in recent years, falling to 3% in 2024. The company aims to reverse this trend by increasing its production capacity and diversifying its production sites. LG Innotek's expansion in Vietnam is part of this broader strategy to strengthen its position in the global market.
LG Innotek's completion of the V3 plant in Vietnam is a significant step towards its goal of making the country a hub for 70-80% of its camera module output within the next two to three years. The company's expansion in Vietnam is part of a broader strategy to improve profitability and stay competitive in the global market.
