Jahwa Electronics will set up an 'Apple Parts Factory' in Gumi City, Gyeongsangbuk-do. It will produce camera parts for the iPhone 14, which will be released in the new year. This is the first time that Samsung Electronics' camera parts supplier enters Apple's supply chain, except for Samsung Electro-Mechanics. On the 22nd, it was understood that Jahwa Electronics took over an idle factory in Gumi and is converting it into a production line for Apple parts. It utilizes an existing factory rather than building a new one in order to begin the production as early as possible. The city of Gumi will soon make an official announcement on this matter.
Jahwa Electronics' Gumi plant will produce 'Optical Image Stabilizer' (OIS) for the iPhone 14. Gumi was chosen because LG Innotek's camera module production base is located there. Many of the smartphone camera modules for Apple are made at LG Innotek's Gumi plant. If Jahwa Electronics supplies OIS parts to LG Innotek, LG Innotek is expected to supply the final camera module to Apple. Jahwa Electronics also has factories in Cheongju, North Chungcheong Province as well as Vietnam.
OIS compensates for hand shake and aids to capture the subject clearly. It is mainly installed in the iPhone telephoto camera module. Shaking is more noticeable when zooming in on a distant subject. The role of OIS has become even more important as the iPhone 14 has more than four times the number of camera pixels compared to its predecessor. Jahwa Electronics, which quit the camera module business, currently uses OIS and autofocus actuators as its core revenue sources. It accounts for 90% of sales. Building a factory dedicated to Apple implies that a significant amount of parts supply contracts have been signed.
When Apple makes a deal with a new parts company, Apple requires build its own production facility. This seems that Apple was deeply involved in the location and scale of the plant. However, the factory size and production capacity have not been confirmed yet. Apple visited Jahwa Electronics' Cheongju factory this June for due diligence. Apple has been reviewing a new manufacturing base for Jahwa Electronics in various regions such as Vietnam and Pyeongtaek. Gumi was selected in the end, considering the distance from LG Innotek. Apple has raised its smartphone shipment goal for the new year by 30%, and the supply of parts is expected to be substantial.
Global Camera Module Market Size (Source: Markets and Markets)
By Staff Reporter So-ra Park (srpark@etnews.com)