▲ LG Innotek’s electronic parts products. Braking motor, camera module, V2X communication module, and lidar sensor clockwise from top left. < LG이노텍 >
Following the optical solution, there is a possibility that LG Innotek will continue to accompany Apple in the electronic parts business.
LG Innotek can gain more momentum in the growth of its electronic component business if it further establishes a cooperative relationship with Apple, which is jumping into self-driving electric vehicles through a joint venture between its parent company LG Electronics and Magna.
According to an analysis of the securities industry on the 28th, there is an expectation that LG Innotek, a subsidiary of LG Electronics, will benefit from the electronics business as LG Electronics established a joint venture for electric vehicle parts with Magna.
LG Innotek sees the electric equipment business as a future growth engine, and has steadily exerted efforts, but the electric equipment business still accounts for only 15% of total sales.
Among the three main business divisions of LG Innotek, including optical solutions, substrate materials, and electronic parts, only the electronic parts business is in the red.
LG Innotek’s Electronic Components Business Division produces products such as motors, sensors, cameras, communications and lighting modules.
In particular, it is evaluated as being competitive in the field of braking and steering motors based on high output and compact design capabilities. LG Innotek has a 10.5% market share in the global vehicle motor market as of the third quarter of 2020.
LG Innotek is planning to expand its braking and steering motor technology competitiveness to the powertrain (power transmission device) motor field.
Since the joint venture between LG Electronics and Magna focuses on powertrain, LG Innotek’s business opportunities are expected to increase in the future.
In particular, there is a prospect that the joint venture between LG Electronics and Magna will supply parts to Apple’s electric vehicles. Considering this, we cannot rule out the possibility that LG Innotek’s electronic components will be installed in Apple cars.
Magna has been deeply involved in Apple’s self-driving car business, Project Titan. It is reported that dozens of Magna engineers developed the vehicle with Apple.
There are many views that Apple will cooperate with Magna in the manufacture and production of self-driving electric vehicles expected to be released around 2024.
On the 23rd, Forbes reported that Apple’s self-driving electric vehicle business was back on track and pointed to Magna as a leading manufacturing partner.
As the basis for the analysis, he cited the need for cooperation with existing companies such as Magna because vehicle production and supply chain management are difficult tasks.
Choi Bo-young, a researcher at Kyobo Securities, predicted that the establishment of a joint venture between LG Electronics and Magna was “expected to enter the Apple EV vendor through collaboration with LG subsidiaries in the mid- to long-term.”
Already, LG Innotek is in close cooperation with Apple. As the flagship product, camera modules, etc., are supplied to Apple, Apple accounted for 65.3% of LG Innotek’s sales in the third quarter.
LG Innotek has been supplying the triple camera module to the Apple iPhone. In addition to the triple camera module, the 5G smartphone iPhone 12, which Apple released in October, also supplied a time-of-flight distance measurement (ToF) module.
As the iPhone 12 is showing strong sales to the extent that Apple has increased its production plans, Apple’s share of LG Innotek sales in the fourth quarter is expected to increase further.
Expansion of the electronic parts business has been regarded as one of the ways LG Innotek can lower its dependence on Apple.
However, if Apple enters the electric vehicle business in earnest, it is likely that LG Innotek will continue to cooperate with Apple in the electronic parts business.
The camera module, flight time distance measurement module, and communication module that LG Innotek previously supplied to the iPhone are parts that play an important role in self-driving electric vehicles.
Apple is known to be strict in selecting new suppliers and prefer long-term partnerships with existing suppliers.
It is understood that there is ample room for LG Innotek to expand its partnership with Apple through the supply of iPhone parts to the autonomous electric vehicle field.
“LG Innotek has the potential to supply cameras, 3D sensing modules, V2X communication modules, and small motors to Apple cars in 2025,” said Jo Joo Joo, a researcher at Meritz Securities. I looked at it. [비즈니스포스트 김디모데 기자]