This file photo, provided by LG Innotek on Feb. 21, 2020, shows a Time of Flight module developed by the company.
SEOUL, June 14 (Korea Bizwire) — Following semiconductors and displays, camera modules are emerging as a future cash cow for South Korean tech firms as the demand for camera modules grows at a healthy pace on the back of the rapid growth of the self-driving cars market.
LG Innotek Co., a major electronics components maker, held a board of directors’ meeting last week and resolved to take over its sister company LG Electronics Inc’s A3 plant in the southeastern city of Gumi for 283.4 billion won (US$219 million).
Thus far, LG Electronics has operated a solar panel production line at the A3 plant, while LG Innotek leased some space within the plant to produce camera modules.
As it was looking to invest in new manufacturing capacity, LG Innotek decided to purchase the plant after LG Electronics withdrew from the solar panel business.
LG Innotek supplies most of the camera modules used in Apple‘s iPhones. The affiliate of LG Group ranked No. 1 in the market by grabbing a share of 25.9 percent in the first quarter of this year.
The No. 2 player, Samsung Electro-Mechanics Co., recently won a bid to supply camera modules for U.S. electric car maker Tesla.
The Samsung Group subsidiary obtained a share of 13 percent in the camera module market in the first quarter of this year, lagging behind LG Innotek.
However, on the back of its supply deal with Tesla, Samsung Electro-Mechanics is expected to be able to boost its market share to 20 percent within two or three years.
J. S. Shin (js_shin@koreabizwire.com)
