LG Innotek has finished building a new factory in Vietnam to produce camera modules for iPhones, reports South Korea's ETNews. The company will use this new facility to produce single-lens and dual-lens camera modules for several iPhone models.
LG Innotek already has production lines exclusively for Apple in Gumi, South Korea and the report adds the new factory will help expand production capacity. LG Innotek is said to be planning to produce 100,000 camera modules per day at its new facility by the end of this year. The plant will start supplying camera modules to Apple on a full-scale basis in 2018.
"It is heard that LG Innotek's plant in Vietnam is built in order to match increased orders from Apple. It is likely that there is already an outlook for 2018 from Apple," an industry representative told ETNews.
LG Innotek is already known for extending its production lines whenever there is increased demand from Apple and with the Cupertino-based iPhone maker expanding its offerings, there are reports of increased demand for camera modules among other components. The company is also building the dot projector, one of the key component in the new Face ID facial recognition technology available on the iPhone X.
This is the first time LG Innotek will be building components for Apple outside its home market. The company believes it will lead to significant drop in operating costs due to cheap labour available in Vietnam compared to South Korea. Apple is expected to further overhaul its iPhone lineup next year, with all models adopting an edge-to-edge display design and the new Face ID facial recognition system. The new facility will likely aid the demand generated by the new iPhones next year.