LG Innotek camera module. Photo: The Korea Herald
South Korean electronic components firm LG
Innotek said today [July 28] that it would spend $230 million by 2018 to build a camera module factory in Vietnam’s northern port city of Hai Phong, The Korea Herald reported.
With the plant, which will produce camera modules for smartphones and vehicles, LG Innotek would capital on low labor costs in Vietnam where the monthly minimum wage is $155, around one fifth that that of South Korea and 40% lower than that in China.
Earlier news report said that Apple had requested LG Innotek to construct a camera module plant in Vietnam to reduce supply prices.
In June, the Korean firm started to roll out dual-lens camera modules for the iPhone
7 to be released in the second half of this year.
LG Innotek has been ruling the world’s smartphone camera module market for the fifth consecutive year with its market share reaching 16%.
The electronic components business arm of LG Group currently produces camera modules at its plants in Gumi and Gwangju, both in Korea, and Yantai, China.