Korea’s leading smartphone camera module-maker LG Innotek said Tuesday that it would focus on electronic components and materials in a bid to seek new growth engines.
The company said it plans to rake in 200 billion won ($166 million) in revenue in the business in the next three years.
Outlining its mid- and long-term plans, the company also said it would jump in the businesses for the metal power inductor, which helps prevent abrupt changes in electric current, and “2-metal chip-on-film,” a film-type component that connects chips and display panels to a main circuit board.
The metal power inductor and 2-metal chip-on-flex are widely used in smartphones, home appliances and even automobiles.
LG Innotek CEO Park Jong-seok showed confidence in competing with power inductor-maker Samsung Electro-Mechanics and other global electronic component powerhouses Murata Manufacturing and TDK.
“Gaining a competitive edge in the electronic component and materials businesses is essential for the firm’s future growth,” Park said in a press release, vowing to roll out differentiated products for customers and beef up mid- and long-term business strategies.
In line with the initiatives, the company plans to pour 70 billion won in the sectors for business acquisitions, research and development and infrastructure.
Park was named CEO in LG Group’s executive reshuffle in November. The LG Group affiliate, one of the main camera module suppliers for tech firm Apple’s iPhones, is the top camera module-maker, with its sales standing at $2.5 billion last year, according to market research firm Research in China. Sharp of Japan and Samsung Electro-Mechanics took second and third place, respectively, raking in $1.9 billion and $1.8 billion in sales.
Market analysts, however, forecast that LG Innotek’s camera module business, highly dependent on Apple, will face a predicament as sales of the U.S. firm’s iPhones are expected to decrease down the road.
With the grim outlook of the smartphone market, the LG affiliate is expected to put more focus on other businesses, especially for automobile parts including sensors, light-emitting diodes and telecommunications modules.