iPhone 18 camera is manufactured in Hai Phong

LG's factory in Hai Phong is where most iPhone cameras are produced. Photo: PA .

Recently, LG Innotek said that it has completed the construction of a new camera factory in Vietnam. Specifically, the V3 electronics production line in Hai Phong officially went into operation at the end of September. The project was announced in July 2023. According to the plan, LG will spend about 1,300 billion won ( 23,000 billion VND ) by the end of 2025.

According to The Elec , the opening of a new production facility in Vietnam will help LG Innotek double its camera module manufacturing capacity. This way, they can compete on price with their two main rivals, Foxconn and Cowell. A source from Korea said that LG aims to increase the contribution from the Vietnam factory to 70-80% of its mobile camera component production capacity in the next 2-3 years. The facilities in Gumi and Paju in their home country will gradually reduce their scale and influence.

Smartphone camera module components account for about 80% of LG Innotek’s revenue. But from 2023, the company will face pressure from Apple, its largest customer, to lower prices. The reason comes from the impact of new competitors such as Cowell, which bid lower.

LG Innotek factory in Hai Phong. Photo: LG.

The profit margin of LG Innotek’s camera module production was 7% in 2019-2020. It peaked at 8% in 2021. After that, the margin gradually decreased to only 3% in 2024. The company is still Apple’s largest supplier of photographic components. However, Foxconn and Cowell are looking to join in and gain more market share in the Apple supply chain.

In a statement in March, LG Innotek said it had no plans to cede its share of the camera module market. Even as profits have fallen, this is the Korean company’s largest source of revenue. The opening of the new factory in Hai Phong is an important step to increase production capacity and price competitiveness.

According to Tri Thuc - Znews 's private source, Sharp and its Japanese subsidiaries used to play an important role in the Apple phone camera supply chain. Their main production facility was located in Binh Duong province (old). However, in the face of competition from LG, most of the production line was transferred by Sharp to Foxconn.

A position related to camera modules being recruited by Apple in Vietnam. Photo: Apple.

Development engineer and camera module team leader are also positions that Apple Vietnam regularly recruits. The job description will involve working with partners in the supply chain to test, develop, and produce iPhone cameras.

In addition, moving part of the supply chain out of China is also a long-term plan of Apple. Vietnam is considered the most potential destination thanks to its favorable location and mature infrastructure network. Recently, Tim Cook said that most of Apple's non-iPhone devices will be produced in our country. Meanwhile, the factory in India is responsible for producing Apple phones for the US market. For the remaining group, China still plays a major role.

Source: https://znews.vn/camera-iphone-18-duoc-san-xuat-tai-hai-phong-post1597244.html