LG Innotek will develop its Gwangju plant to reinforce automotive utility processor (AP) module manufacturing line amenities. The corporate plans to develop its presence within the quickly rising automotive AP module market, which is linked to the event of future car applied sciences similar to autonomous driving, and additional contribute to fostering the automotive supplies and elements business within the Gwangju area.
LG Innotek introduced on Jan. 13 that it signed an funding settlement (MOU) with Gwangju Metropolitan Metropolis for manufacturing facility growth. The overall funding quantity is 100 billion gained, and after the growth, the Gwangju plant will moreover have a car AP module manufacturing line equal to about 1.2 instances the dimensions of a soccer subject (9,000㎡). The growth is scheduled to be accomplished in December this yr, and upon completion, the LG Innotek plant will develop from 88,000㎡ to 97,000㎡ when it comes to whole flooring space.
Car AP modules are core elements that function the mind of autos. They’re put in inside autos and used to manage digital techniques integrally, similar to superior driver help techniques and digital cockpits (digitalized management areas). LG Innotek declared its entry into the automotive AP module market in February final yr and has been producing and supplying these merchandise to the market at its Gwangju plant. As demand for automotive APs has surged, LG Innotek has determined to extend manufacturing quantity by means of growth. Business analysts forecast that AP modules put in in autos worldwide will improve by 22% yearly from roughly 33 million items final yr to 113 million items by 2030. By way of this growth, LG Innotek plans to make the Gwangju plant a core manufacturing hub for automotive AP modules.
Automotive AP modules require refined micro-processing because the core work includes modularizing APs made by semiconductor firms to allow them to be put in in autos, with over 400 elements mounted on one car AP module (primarily based on 6.5cm×6.5cm customary). LG Innotek possesses differentiated expertise on this subject, and regardless of launching the enterprise in earnest final yr, international firms are already considerably rising orders to LG Innotek. An organization official stated, “For the reason that finish of final yr, we have now already been supplying car AP modules to international semiconductor firms, and we’re actively partaking in promotions to safe extra clients,” including, “By way of this funding, we are going to additional improve the competitiveness of our car AP module enterprise.”
LG Innotek expects that this funding will improve the automotive AP module manufacturing capability on the Gwangju plant by roughly 3-4 instances. With the rise in manufacturing capability, LG Innotek’s automotive AP module gross sales are additionally anticipated to extend accordingly.
Specifically, LG Innotek expects this funding to strengthen new enterprise competitiveness whereas contributing to regional balanced improvement. Gwangju Metropolitan Metropolis Mayor Kang Ki-jung stated, “LG Innotek’s funding may be very significant when it comes to regional balanced improvement by means of non-metropolitan and native funding,” including, “We anticipate this funding to function a catalyst for Gwangju Metropolis’s ‘future car supplies, elements and gear business improvement’.”
LG Innotek CEO Moon Hyuk-soo additionally emphasised, “The Gwangju plant has performed a pivotal function because the ‘mom manufacturing facility’ for our mobility resolution enterprise,” including, “We are going to do our greatest to develop along with the Gwangju local people and accomplice firms and create excellent worth for our clients.”
