LG Innotek invests in AOE Optronics to pull away from Apple

[LG INNOTEK]

LG Innotek will acquire an undisclosed stake in AOE Optronics, a Taiwan-based automotive lens manufacturer, in a bid to strengthen its standing in optical parts for vehicles and extended reality (XR) headsets.

The Seoul-based company, a primary camera module supplier to Apple, declined to reveal the size of the deal.

The purchase will help the two companies share optical technologies and expand their business portfolios, LG Innotek said, which could reduce the Korean company's reliance on Apple's business.

The Korean company will contribute its optical design and process automation capabilities, while AOE will share its proprietary material, mold processing and precision lens manufacturing technologies.

The two aim to supply codeveloped optical products be supplied to global automakers and XR device manufacturers.

LG Innotek will also secure a stable lens supply from AOE Optronics.

AOE Optronics is a subsidiary of Asia Optical (AOE) that specializes in the design and manufacturing of optical products for wide range of devices such as cameras, smartphones and other image-related products.

The company specializes in lenses that are used in automobile camera modules and has been increasing its focus on North American automobile companies. The global industry has been eyeing its manufacturing capabilities due to surging demand for aspheric glass lenses, a core component of the high-resolution cameras needed for autonomous driving.

“LG Innotek will quickly expand its camera module portfolio to automobiles and XR devices,” said the company’s CEO, Moon Hyuk-soo, in a statement. “We will become a tech revolutionary company with an overwhelming competitive edge in technology, price and manufacturing capabilities.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]