LG Group's electronic components affiliate LG Innotek is tightening the reins on expanding the scope of its flagship revenue source, the camera module business. While LG Innotek is co-developing camera modules and more with U.S. robot company Boston Dynamics, it is understood to be the exclusive supplier of camera modules for FigureAI's next-generation humanoid robot in the United States. The company appears to be actively targeting the physical artificial intelligence (AI) market to reduce its reliance on Apple, which accounts for more than 80% of total sales.
According to the industry on the 16th, LG Innotek is known to be the exclusive supplier of the camera module to be mounted on the Figure03 developed by the humanoid robot startup "FigureAI." As it is simultaneously developing the "vision sensing module" to be installed in the next-generation model of Atlas, the humanoid robot from Boston Dynamics, there is an outlook for an increase in supply in the physical AI field. A vision sensing module refers to a hardware and software system that recognizes and analyzes visual information by combining cameras, three-dimensional (D) sensors, and AI algorithms.
A camera module is a component that converts images entering through a lens into digital signals. It plays the role of "eyes," helping a humanoid robot accurately recognize its external environment and enabling AI algorithms to assess situations and respond accordingly. As the physical AI market, including humanoid robots, grows, the importance of camera modules is also coming to the fore. In LG Innotek's Optical Solution Business Unit, which handles the camera module business, the sales share for the first half of the year reached 80.6% (7.191 trillion won).
FigureAI has raised more than $1 billion to date, and the corporations' valuation is estimated at about $39.5 billion (54 trillion won). The Figure03 is a general-purpose humanoid robot that goes beyond experimental use and can be commercialized in homes and industrial sites. FigureAI is building a dedicated manufacturing facility with a goal of producing 100,000 units within four years.
With projections that the market share of Chinese camera module corporations that had been competitors could decline due to the U.S.-China technological hegemony rivalry, analysis suggests LG Innotek's supply volume will surge starting next year. Kim Dong-won, an analyst at KB Securities, said, "Amid expectations of a supply chain reorganization in the camera module market due to the technological hegemony war and security issues between the United States and China, LG Innotek's camera module business is expected to benefit."
As LG Innotek's supply of camera modules in the physical AI field is projected to expand, expectations are that its results will gain momentum as Apple, its key client next year, is expected to diversify the iPhone lineup. LG Innotek supplies folded zoom, a high value-added camera module, to premium products such as the iPhone Pro and Pro Max lineups. Park Kang-ho, an analyst at Daishin Securities Co., said, "The number of Apple iPhone models launched annually is expected to increase from four last year to five this year and six in 2027," adding, "Driven by the rise in average selling price (ASP), next year's operating profit will reach about 779.4 billion won, up roughly 14% from this year."