To meet Apple’s growing demand for single and dual-camera modules, LG Innotek will start producing camera modules for the company at its factory in Vietnam. The recently constructed plant is currently undergoing a trial production run with mass production slated to begin only from 2018.
LG Innotek plans on start supplying camera modules manufactured from its Vietnam factory from April 2018. At its full production capacity, the factory will be capable of producing up to 100,000 modules per day.
This will be the first time that LG will be building camera modules for Apple outside of its Gumi factory located in South Korea. The Vietnam factory will benefit LG as the low labour costs and a larger scale of production will allow for a higher profit margin. The labour costs in Vietnam are only about one-tenth of those in Korea. Additionally, it will also help LG reduce the load on its existing production lines. The company’s factory in Gumi currently consists of seven production lines which are running for almost 24 hours.
LG Innotek will also continue bringing new machinery to its Vietnam plant until 2018 which hints at the company being a supplier of dual-camera modules to Apple until at least 2019.
Apple’s demand for dual camera modules is bound to increase as the company now sells three iPhones with a dual-camera setup at the rear: the iPhone 7 Plus, iPhone 8 Plus, and the iPhone X. It is likely that Apple eventually plans on introducing a dual-camera setup to its smaller 4.7-inch iPhone as well which will further lead to an increase in its demand.
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