According to a report by South Korean media, LG Innotek will take over some of the supply volumes from Sharp for camera modules provided to Apple due to the closure of Sharp’s manufacturing in Ho Chi Minh, Vietnam, over the coronavirus pandemic.
LG Innotek Co Ltd is a Korea-based company principally engaged in producing and selling optical-electronic parts.
The company, in particular, has been ordered to close until September 15, right in the heart of iPhone manufacturing.
LG Innotek’s factory is located in Haiphong, another Vietnamese city where there are currently no shutdowns.
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With this development, LG Innotek will be responsible for some of the camera modules for the iPhone 13 series that Sharp was planning to supply.
LG Innotek has a supplementary camera module plant in Gumi, South Korea, that can handle the volume that was intended to go to Sharp if necessary.
According to sources familiar with the situation, LG Innotek could supply up to 70% of the camera modules used by Apple for the iPhone 13 this year.
O’Film, a Chinese company, was kicked off of Apple’s camera module supply chain last year due to human rights crimes against the Uighur people. As a result of the shift, LG Innotek and Sharp witnessed an increase in camera module orders.
According to reports, Apple bought 20% more components for the iPhone 13 than for the iPhone 12.
The iPhone 13 series will incorporate sensor-shift technology in all four models, which means camera module unit prices will rise as well. By shifting the sensor rather than the lens, sensor shift prevents fuzzy images.