LG Innotek penned a strategic partnership agreement with AOE Optronics to break into the market for cameras for autonomous driving and optical components for extended reality (XR). Under the strategic partnership agreement, LG Innotek will invest in AOE shares, and the companies will cooperate on core optical components.
LG plans on expanding its technology offerings in optics solutions in vehicles and XR, based on its expertise with its smartphone camera modules. LG Innotek also claims that the move stabilizes its supply chain management capabilities further around a stable supply of camera lenses by joining the partnership.
Taiwanese AOE specializes in lenses. Its key technologies and mass production capabilities focus on glass materials to lens modules. Recently, it increased its supply of vehicle lens modules to North American EV manufacturers. Specifically, the demand for ‘Aspherical Glass Lens,’ a core component for high-resolution cameras, is increasing in autonomous vehicles. LG Innotek brings to the table its capabilities in optical design and process automation and advanced quality control systems, while AOE shares its independent materials and precision mold processing and precision lens manufacturing technologies. The companies will jointly develop high-level lenses for these markets.
According to CEO Moon Hyuk-soo, “LG Innotek will rapidly expand the camera module portfolio to vehicles, XR devices and other areas,” and added, “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.”