LG Innotek has unveiled plans to invest $1 billion (1.3 trillion won) in expanding its production plant in Haiphong, Vietnam.
The investment will be made through direct investment in the Vietnamese production corporation and will take place from July 2023 to December 2025.
The completion of the new plant is scheduled for the second half of 2024, with mass production targeted for 2025. Haiphong City is offering support for the expansion, including the installation of additional substations for power and tax benefits.
This expansion investment by LG Innotek is expected to more than double the camera module production capacity (CAPA) of its Vietnamese plant. It aims to ensure a more stable supply of large-scale products to its customers.
LG Innotek has been actively enhancing its production capacity for camera modules and semiconductor substrates. In June of last year, it acquired the Gumi 4 plant and invested 1.4 trillion won until this year. The investment in Vietnam will further strengthen LG Innotek's domestic and international supply chain.
With camera module production bases in Gumi, Gyeongbuk, Paju, Gyeonggi, and Vietnam, LG Innotek has established a stable supply system. The domestic camera module plant will focus on manufacturing high value-added camera modules and optical components for new applications.
"LG Innotek aims to strengthen its supply chain both domestically and internationally while enhancing its global business competitiveness," said CEO Jung Cheol-dong. "The company will continue to prioritize continuous investment to create unique customer value."
Meanwhile, LG Innotek's Vietnam production subsidiary, established in September 2016, currently employs approximately 3,500 workers. Its main products are smartphone camera modules, and it achieved sales of 4.3 trillion won last year, making it the largest overseas subsidiary of LG Innotek.
