Electronic components firm LG Innotek
said July 28 that it would invest US$ 230 million by 2018 to build a camera module factory in Haiphong, the third largest city of Vietnam.
The company’s board of directors approved a new funding of US$ 20 million to be used for setting up a local branch at a meeting in Seoul on July 27.
LG Innotek`s camera module
LG Innotek will roll out camera modules for smartphones and vehicles at the new factory in Vietnam, where the monthly minimum wage is US$155, around 80 percent lower than that of Korea.
The Korean firm runs camera module factories in Gumi and Gwangju -- both in Korea -- and Yentai, China.
The LG Group affiliate posted 34 billion won of operating loss in the April-June period due to a prolonged sales drop in the global high-end smartphone segment.
The firm’s business for car components saw its revenue increase 29 percent on-year to 200.9 billion won.
LG Innotek has been ruling the world’s smartphone camera module market for the fifth consecutive year with its market share reaching 16 percent.
Earlier news reports said that the company will be supplying dual-camera modules for Apple’s upcoming iPhone 7, the first iPhone to be equipped with a dual-lens camera.
By Kim Young-won (email@example.com)