Core components for realizing ultra-high resolution camera
Will be used for the next iPhone from next year
Supplying to competitor's flagship model is 'unusual'
Purpose of stable parts network mana
JAHWA Electronics will supply key parts for camera modules to Galaxy S23, which is Samsung Electronics' next flagship smartphone. It is gaining attention that JAHWA Electronics’ supply to Samsung is not decreasing significantly while they are pushing to enter the Apple parts supply chain.
It is known that JAHWA Electronics will be supplying optical image stabilization (OIS) actuators to Samsung's next product, Galaxy S23. OIS is a technology that prevents shaking and corrects photos or videos. With OIS, users can take clear photos and videos even in dark environments. OIS is a premium optical component with a high unit price. OIS plays a key role when a camera realizes ultra-high resolution.
JAHWA Electronics supplies OIS actuators along with Samsung Electro-Mechanics and MCNEX to Samsung Electronics. It is known that the proportion of JAHWA Electronics’ supply is quite large. JAHWA Electronics also supplied OIS actuators to the Galaxy S22 this year.
It is interpreted that it is unusual for JAHWA Electronics, which supplies parts to Apple in earnest from next year, to continue supplying core parts for flagship models to Samsung Electronics. This is because company gradually reduces the supply volume to their cooperative company for technology protection and other reasons when they enter the supply chain of their existing cooperative company’s competitor.
It is interpreted that Samsung Electronics did not make any major changes to their supply chain management in order to maintain stability of their part supplies with consideration of OIS core patents owned by manufacturer. However, within the next few years, JAHWA Electronics' shipment to Samsung could significantly decrease.
JAHWA Electronics is expected to supply camera module parts for Apple's next iPhone from next year. JAHWA Electronics has been pushing to enter Apple's supply chain since last year. Last year, Apple conducted a due diligence of JAHWA’s optical image stabilization (OIS) factory. As entry into the Apple’s supply chain became visible, JAHWA Electronics made a large-scale investment of 64% of their equity capital in the second quarter of this year. They are building a production base in Gumi, Gyeongsangbuk-do, where a large-scale factory of Apple's camera module partner is located. After operating the Gumi plant in earnest and securing production yield, it is expected to start mass production after passing through Apple's quality test (Qual Test).
JAHWA Electronics is expected to generate full-fledged sales from Apple starting next year. This year's performance fell compared to the previous year due to contraction in the IT front industry, inventory adjustments from major customers, and intensifying competition in OIS. The industry expects JAHWA Electronics to exceed 450 billion KRW in sales and 30 billion KRW in operating profit next year.
By Staff Reporter So-ra Park (srpark@etnews.com)