Korea Focuses on High-Value Products, Vietnam on General-Purpose Production: "Dual-Location Strategy"
Aiming to Solidify No. 1 Position in Camera Modules and Improve Profitability
With the full-scale operation of its new factory in Vietnam, LG Innotek is implementing a dual-location strategy for the production of its optical solution camera modules. The company aims to enhance cost competitiveness and solidify its position as the global number one supplier of smartphone camera modules.
On September 21, LG Innotek announced that it had completed construction of the V3 factory at its production subsidiary in Haiphong, Vietnam, and has begun full-scale operations. Previously, in July 2023, LG Innotek announced plans to invest approximately 1.3 trillion won (1 billion dollars) in its Vietnamese production subsidiary by December 2025 to expand the V3 factory and strengthen its optical solution production capabilities.
The V3 factory covers a total floor area of approximately 150,000 square meters (about 45,000 pyeong), equivalent to the size of 20 soccer fields. With the expansion of the V3 factory, the production capacity (CAPA) for camera modules will more than double compared to previous levels. LG Innotek explained that it has established a robust global production network capable of reliably supplying large-scale orders from its customers. The company is also continuing to invest in optical solution facilities in Korea. In March 2025, LG Innotek signed an investment agreement worth 600 billion won with Gumi City in North Gyeongsang Province. As a result, the company will make new facility investments at its Gumi plant for the production of high-value-added camera modules and other products by the end of 2026.
Under the dual-location production strategy, LG Innotek plans to utilize the Gumi plant as the "mother factory" for optical solutions, focusing on research and development, production of high-value-added camera modules for new models, and optical components for new applications. Another optical module production site in Paju will also focus on manufacturing high-value-added products such as camera modules and 3D sensing components.
The Vietnamese production subsidiary will serve as the core base for the production of general-purpose camera module products.
Moon Hyuksu, CEO of LG Innotek, stated, "With the completion of the V3 factory expansion in Vietnam, the profitability of our camera module business will gradually improve. We will continue to provide differentiated customer value by expanding the proactive proposal of advanced technologies to clients and internalizing key components, thereby further solidifying our position as the global leader in camera modules."
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