Manufacture of camera modules goes offshore

Samsung Electro-Mechanics Co., Korea’s No. 1 electronics parts maker, said yesterday that it will move its remaining domestic camera module production lines for mobile phones to China by the end of the year to cut production costs and meet rising demand in the Chinese market.
“The relocation efforts have been under way since earlier this year, and the process will be completed this year,” said Lee Jun-ho, the company’s spokesperson.
Samsung Electro-Mechanics, a unit of Samsung Group, already produces 70 percent of its camera modules at its Chinese plant in Tianjin, while 30 percent are made at its local line in Busan.
The Busan plant churned out 22 million camera modules in 2005 and 17 million units last year. When the relocation is complete, the Chinese plant will produce 50 million modules annually, the company said. The employees who were on camera module production lines will be transferred to other assembly lines in Korea, Lee said.
Samsung Electro-Mechanics said the relocation decision is intended to reduce costs and meet mounting demand for camera modules in China, where many global mobile phone manufacturers are opening production plants.

By Wohn Dong-hee Staff Writer [wohn@joongang.co.kr]