LG announced the opening of a plant in Vietnam, which will produce camera modules for the iPhone and iPad, reports Appleinsider.
The plant will produce lenses for the main camera and telephoto lenses, which are used for optical zoom and blur photos. It is reported that by the end of 2017, the new plant will be 100,000 modules per day. But the mass delivery of components expected in 2018. LG expects that orders from Apple will come until 2019. In the company’s management also allow the possibility that the collaboration with Apple will continue after 2019.
LG first placed the plant outside of South Korea. Before the plants were the same country. The need for additional plant has arisen from the fact that all seven production lines, which are used for the production of modules, worked around the clock at maximum capacity. Korean media also reported that in the last six months LG has hired 700 people for the production of lenses.
It is expected that the new plant will quickly begin to make a profit because of the labor cost in Vietnam is ten times lower than South Korea.
Component production for Apple devices LG bring big profits. 25 October 2017, the CFO, LG Display reported an increase in quarterly profit on 80%, due to the large demand for the iPhone 8 and 8 Plus.
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