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LG Innotek Partners with AOE Optronics to Enhance Global Vehicle and XR Camera Module Market Presence

The collaboration aims to develop specialized lenses for camera modules, reinforcing LG Innotek's leadership in automotive and XR technologies
South Korea
l 011070.KO Mid and Small Cap 2000 Tech 350
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LG Innotek Co., a leading South Korean camera module manufacturer, has announced a strategic partnership with AOE Optronics Co., a subsidiary of Taiwan’s Asia Optical specializing in automotive lens manufacturing. This alliance, which includes LG Innotek acquiring stakes in AOE, is set to strengthen their foothold in the rapidly growing vehicle and extended reality (XR) camera module markets.

While the financial details of the stake acquisition remain undisclosed, the partnership is a significant move for LG Innotek, known for supplying camera modules to Apple Inc.’s iPhones. This collaboration is expected to bolster their market dominance, especially in automotive and XR camera modules, sectors experiencing a surge in demand due to advancements in autonomous driving technologies.

LG Innotek, already a global leader in mobile camera modules, has been focusing on expanding its capabilities in vehicle and XR camera modules through substantial investments in recent years. The partnership with AOE, renowned for its expertise in lens materials, module development, and mass production, will be instrumental in addressing the increasing demand for aspherical glass lenses, crucial for high-resolution cameras in autonomous vehicles.

Under this agreement, LG Innotek and AOE will join forces to develop camera module lenses, combining LG’s strengths in optical system design, automated manufacturing processes, and quality control systems with AOE’s proficiency in material development, molding, and precision optical lens manufacturing.

The lenses developed through this collaboration will be key components in optical systems for vehicles and XR devices. This partnership not only promises to innovate in lens technology but also ensures a stable supply of camera module lenses for LG Innotek.

LG Innotek’s CEO, Moon Hyuk-soo, expressed the company’s commitment to diversifying its portfolio with camera modules for vehicles and XR gears. This development follows LG Innotek’s significant investments, including 1.4 trillion won ($1 billion) in semiconductor substrates and camera module facilities from 2022 to 2023, and the construction of a new camera module factory in Vietnam to double its production capacity in Southeast Asia. Additionally, the company has been focusing on expanding its two-metal chip on film (CoF) business, aiming to lead the market in XR component devices.

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