IA Networks Becomes Largest Shareholder of Sewon... Anticipating Synergy in Autonomous Driving Sensors

[Asia Economy Reporter Jang Hyowon] IA Networks, a company specializing in image sensor packaging, has secured the position of the largest shareholder of Sewon, a company specializing in automotive air conditioning system components. Based on its independently developed high-reliability image sensor packaging technology for vehicles, IA Networks aims to maximize synergy by strengthening collaboration with Sewon.

On the 23rd, IA Networks disclosed that it had additionally acquired 1,528,594 shares of Sewon. As a result, IA Networks became the largest shareholder holding 10.37% (2,714,044 shares) of Sewon’s shares. IA, a related party, became the second largest shareholder with an increased stake of 9.72% (2,543,977 shares).

IA Networks possesses image sensor packaging technology used in autonomous driving ADAS (Advanced Driver Assistance System) sensing cameras. It launched a new product, NeoPAC Encap, which has obtained the automotive component reliability evaluation standard ‘AEC-Q100’ certification, and supplied package sample models for automotive front and rear sensors to major customers in September. The product is scheduled for full-scale mass production next year.

A representative from IA Networks stated, “We plan to expand the application of NeoPAC Encap technology centered on the autonomous vehicle sensor market,” adding, “As global IT companies’ competition to develop autonomous vehicles intensifies with not only automakers such as GM, Tesla, and Ford but also Google and recently Apple joining, we will expand the application of sensor products certified as high-reliability packages for automotive use in the market.”

They continued, “As seen in Samsung Electronics’ acquisition of Harman and LG Electronics’ acquisition of ZKW, due to the nature of the automotive industry, cooperation with existing automotive parts companies is more important than independent expansion of automotive components,” and added, “Starting with Sewon’s air conditioning component assembly and processing, which has outstanding competitiveness in the eco-friendly vehicle market, we will maximize synergy effects through collaboration.”

Meanwhile, according to a report by business platform Insight Partners, the global automotive autonomous driving sensor market size is expected to grow from $24 billion (approximately 27 trillion KRW) in 2020 to $40 billion (approximately 44 trillion KRW) by 2025.

Sewon supplies air conditioning system components to numerous global electric vehicle companies including Tesla, Lucid Motors, Ford, and Hyundai Kia. With increasing demand for high value-added products such as electric and hydrogen vehicles, sales to eco-friendly vehicles this year have approximately doubled compared to the previous year.