Apple supplier LG Innotek to invest $268.4 mn in Vietnam in 2025

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 now under construction.

The investment is part of its 1.3 trillion won budget 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.

In a filing to the South Korean financial regulator, LG Innotek said it aims to deal with new models of the optics solution industry and improve its competitiveness. Its optics solution division supplies camera modules to the iPhone series.

The company is scheduled to complete plant construction in the fourth quarter of this year and begin commercial operation in 2025.

Its Vietnamese subsidiary, which opened in 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 12 trillion won in sales in the third quarter, accounting for 82.6% of the company’s total revenue.

Write to Eui-Myung Park at uimyung@hankyung.com
 
Jongwoo Cheon edited this article.