LG Innotek Boosts Vietnam Camera Module Output, Challenges Rivals
LG Innotek, a major supplier of cameras to Apple, has significantly expanded its production capacity in Hai Phong, Vietnam. The company, facing intensifying competition from Foxconn and Cowell, aims to make Vietnam a hub for most of its camera module output. Meanwhile, Samsung is planning to expand its own camera module factory in the region.
LG Innotek has completed an expansion of its V3 plant in Hai Phong, Vietnam. The facility now spans 150,000 square meters and more than doubles the company's camera production capacity in the country. This expansion follows a $1 billion investment pledge made in July 2023 to enhance digital camera solutions production capacity.
LG Innotek's expansion in Vietnam is a strategic move to better compete on cost with rivals Foxconn and Cowell. The company plans to ramp up production of multi-functional modules in Vietnam, aiming to make the country a hub for 70-80% of its camera module output within the next two to three years.
LG Innotek's operating margin on camera modules has declined in recent years, falling to 3% in 2024. Despite remaining Apple's largest camera supplier, LG Innotek faces intensifying competition in the market. The new V3 plant in Hai Phong has commenced commercial operations, contributing to LG's key plants in Vietnam recording a total revenue of KRW14.99 trillion ($10.77 billion) in 2024, up 9.63% year-on-year.
Separately, Samsung is also planning to expand its camera module factory in Hai Phong, Vietnam. The company aims to more than double its production capacity in the region.
LG Innotek's expansion in Vietnam signals a strategic shift to better compete in the camera module market. With the new V3 plant operational, LG Innotek is well-positioned to increase its competitiveness and maintain its position as Apple's largest camera supplier. Meanwhile, Samsung's planned expansion in the region indicates a growing interest in the camera module market.
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