LG Innotek joined hands with a global lens manufacturer, AOE Optronics Co., Inc., to spur its penetration into the market for cameras for autonomous driving and optical components for extended reality (XR).
AOE is a subsidiary of Asia Optical Co., Inc., a major optical component manufacturing corporation in Taiwan.
In relation, LG Innotek has signed a Share Subscription Agreement and strategic collaboration with AOE. Specifically, LG Innotek invests in AOE’s shares. Also, the two companies will closely cooperate in core optical components through a strategic partnership.
Raise Competitiveness in Optical Solutions
LG Innotek decided to make this investment to raise its product competitiveness and strengthen business competitiveness in optical solutions. Mainly, it plans to extend capabilities and technologies of its optics solutions business into new areas like autonomous vehicles and XR. To achieve this, the company will leverage its leadership in smartphone camera modules.
Also, by acquiring AOE’s shares, LG Innotek can enhance its supply chain management (SCM) a step further. Specifically, it guarantees a stable supply of the lens, which is a major component of camera modules.
Under the strategic partnership, LG Innotek will share its optical design and process automation, and advanced quality control system. Meanwhile, AOE will share its independent materials & precision mold processing and precision lens manufacturing technologies. Accordingly, they aim to jointly develop world-class lenses.
The two companies plan to maximize quality and raise cost competitiveness by optimizing design and processes between lens and camera modules. The jointly developed products will be applied to core optical components. Further, they expected to provide differentiated values to global carmakers, vehicle parts companies, and XR device manufacturers.
LG Innotek also sees the investment as an opportunity to actively push ahead with the partnership with external companies and strengthen business competitiveness.
Eyes EV Manufacturers
AOE is a Taiwanese corporation specializing in lenses. It owns key technologies and mass production capabilities in areas ranging from glass materials to lens modules. Recently, AOE has been increasing its supply to North American EV manufacturers. It specializes in lens for vehicle lens modules, particularly, the aspherical glass lens. With the recent increase in demand for aspherical glass lenses, a core component for high-resolution cameras, in the autonomous vehicle industry, AOE also attracts industry attention.
CEO Moon Hyuk-soo said, “LG Innotek will rapidly expand the camera module portfolio to vehicles, XR devices and other areas.” In addition, “We will create differentiated values with our competitive edge in technology and cost competitiveness as well as manufacturing process capabilities by overwhelming our competitors, and become a technology innovation corporation making our customers true winners.”