LG Innotek to expand auto light business to at least $731 million annually
LG Innotek's automotive lighting module Nexlide [LG INNOTEK]
LG Innotek, an Apple supplier, plans to expand its automotive lighting module business to at least 1 trillion won ($731 million) a year, capitalizing on its growing demand in the face of a self-driving era.
The camera module manufacturer, 40.8 percent owned by LG Electronics, said Monday it will accelerate the unit's growth, which currently does around 100 billion won a year in business, putting its flagship Nexlide (Next Lighting Device) module at the forefront.
Nexlide, first developed a decade ago, has nine products under its banner with different applications, such as brake, rear and turn signal lights among others.
LG Innotek says sales of Nexlide modules rose by an average of 47 percent per year for the past 10 years.
"Nexlide is supplied to nine auto brands at home and abroad and is installed on 88 models," the company said. "Accumulated orders reach 146."
Nexlide stands at the epicenter of LG Innotek's technological prowess, having registered more than 200 technology patents related to the module. It is made by attaching multiple lighting sources, resin and optical film on thin substrate.
The thinner modules contain 20 percent fewer components, leading to more flexibility in design for carmakers.
The development of autonomous driving has led to a more versatile usage of automotive lights, such as an illuminating grille which can act as a visual signal between the vehicle and pedestrians.
LG Innotek pledged to complete the development of what's called pixel lighting, which allows the fixture to project text or incorporate animation effects by 2025.
"LG Innotek, with Nexlide, has proved itself on the global stage of the automotive lighting module business," Yoo Byaeng-kuk, head of the company's automotive components business unit said.
"We will develop the business to the trillion-won level by offering unique value to customers."
The automotive lighting business is expected to grow from 29 trillion won in 2022 to 42.5 trillion won by 2030, according to global market tracker Reports Insights.
BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]