LG Innotek in talks with Tesla to supply camera modules

Tech

Published: 25 Aug. 2022, 19:13

LG Innotek in talks with Tesla to supply camera modules

Brand new Tesla cars sit in a parking lot at a Tesla showroom on June 27, 2022 in Corte Madera, California. [AFP]

LG Innotek is in talks with Tesla to supply the automaker with camera modules, according to the Korean electronics component maker on Thursday.

The deal could be worth up to 1 trillion won ($749 million), according to local media reports.

“The company is in discussions with the client, but details are not yet decided,” LG Innotek said in a disclosure.

“LG Innotek will make a more specific announcement in one month or when details are decided,” it said.

Camera modules are electronic cameras used in everything from smartphones to appliances.

If purchased, the modules will be integrated into Tesla vehicles, including the Model Y and Model 3, according to local media reports. Yet-to-be released trucks like the Semi and Cybertruck could also be equipped with the modules.

The move came as the Korean electronic equipment maker, 40.79 percent owned by LG Electronics, is putting more focus on automobile camera modules given that their average price is two to three times higher than camera modules used in smartphones.

LG Innotek, the world’s largest smartphone camera module maker, is a supplier for Apple’s iPhone series.

It acquired a factory in Gumi, North Gyeongsang, from LG Electronics earlier this year to expand its production capacity of camera modules and chip substrates.

The supplier promised to invest 1.4 trillion won in the city through 2023 in an agreement signed with the city government.

Last year, Tesla announced an initiative dubbed Tesla Vision to replace radars with cameras in features like driver assistance systems and self-driving.

News of the potential deal caused shares of LG Innotek to surge 4.75 percent to close at 341,5000 won on Thursday.

In June, Samsung Electro-Mechanics issued a similar statement saying that it is in talks with the U.S. carmaker to supply camera modules.

At the time, media estimated the deal to be worth up to 5 trillion won.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]