With the sophistication of smartphone cameras and the advancement of automobiles, the camera module market is growing rapidly and is expected to surpass 1.2 trillion won in annual revenue. We will also grow the automotive semiconductor package business we have prepared for the past two years into a business with 400 billion to 500 billion won in revenue within 10 years.
Min Dong-uk, 55, CEO of MCNEX, said this in an interview with ChosunBiz at MCNEX headquarters in Yeonsu-gu, Incheon, on the 22nd. Min graduated from the Department of Electrical Engineering at Dongguk University and worked as a mobile phone research and development (R&D) engineer at Hyundai Electronics and Pantech & Curitel before founding MCNEX in 2004. In 2019, 15 years after its founding, he led MCNEX to become a "1 trillion won revenue" corporations by posting 1.2677 trillion won in revenue. In Sept. last year, he received the Order of Industrial Service Merit, Dongtap class, in recognition of his contributions to industry at the ceremony marking "Industrial Complex Day 2025," hosted by the Ministry of Trade, Industry and Energy.
Min said, When five of us started the company in 2004, our first goal was to localize camera modules in a market dominated by Germany and Japan. Now, beyond localization, the share of exports has grown significantly. I am pleased that the company has grown rapidly, creating jobs and contributing to the national economy.
MCNEX develops, manufactures, and supplies camera modules for smartphones and automobiles. It supplies camera modules and more not only for Samsung Electronics' Galaxy S series but also to Chinese smartphone makers. In automotive camera modules, MCNEX counts Hyundai Motor, Kia, Volvo, and Geely Automobile Holdings among its customers. In the domestic smartphone camera module market, it ranks third in market share after LG Innotek and Samsung Electro-Mechanics. In automotive camera modules, it ranks No. 1 domestically and No. 5 globally.
As smartphone camera technology advances and more camera modules are installed due to the advancement of automobiles, MCNEX's growth is accelerating. MCNEX posted 1.0571 trillion won in revenue and 44.4 billion won in operating profit in 2024, and last year its annual revenue outlook was estimated at about 1.28 trillion won.
Min said, In smartphones, profitability has improved as high-value camera modules are being installed from premium to budget models. In automobiles, as many functions that recognize the surrounding environment and assist the driver, such as advanced driver-assistance systems (ADAS), are being added, demand is growing for camera modules that serve as the "eyes of the car." This trend will continue.
Min said the camera module market has also jumped on the "artificial intelligence (AI) boom." He said, AI functions will be embedded in home appliances, realizing an "AI home" in which devices are connected, and integrated products that incorporate multiple functions into individual devices will be released. To do this, camera modules that can recognize the surrounding environment are essential. Camera module makers must also advance their technology for the AI era and build cost competitiveness so consumers can buy at reasonable prices.
Min said he will strengthen technology through R&D and secure cost competitiveness through overseas production bases. He said, I believe MCNEX is now in a position to compete with leading corporations, including large corporations. We will fully operate overseas production bases such as in India and actively foster new businesses to reinvent ourselves as a growing company. The following is a Q&A with Min.
— Performance is growing rapidly.
As the functions of smartphones, automobiles, and home appliances become more sophisticated, demand for high-performance camera modules is bound to increase. Smartphones are seeing improved profitability as high-performance camera modules are being installed not only in premium products but also in budget products.
In automobiles and home appliances, as advanced functions are added to products, the number of camera modules that can recognize the surrounding environment is increasing. In the past, drivers looked around directly using the car's rear and side mirrors, but now cameras recognize the front, rear, and sides to provide information, and autonomous driving technology is also being introduced.
For home appliances, most products such as TVs, refrigerators, washing machines, and vacuum cleaners perform multiple functions. For example, refrigerators will recognize the condition of stored food with a camera and recommend recipes, or analyze expiration dates and inform users of storage periods. To do this, camera modules are essential.
— What is the secret to competing with large corporations and surviving for so long?
We have not neglected R&D to avoid falling behind in technology, and we have continued aggressive facility investments in overseas production bases to build cost competitiveness. For 20 years, we have consistently invested 4% to 7% of annual revenue in R&D. To secure cost competitiveness, we operated production lines in China in the early days of the business, and in 2013 we built four plants on a site of more than 100,000 square meters (about 30,250 pyeong) in Vietnam.
Now we plan to establish a corporation in India and carry out facility investments of about 30 billion won over three years. Investment has begun to build a 53,000-square-meter (about 16,000-pyeong) production base in Sri City, India, and mass production of camera modules is scheduled to begin in earnest in Mar. 2027. India has the next-highest demand for camera modules after China, and tariffs on auto parts are high. We plan to diversify the supply chain to meet demand.
— What are your plans for new businesses?
In the camera module market, we are preparing technological capabilities to respond to wearable devices, drones, and humanoid robots. Wearable devices require R&D to build the necessary technology because small camera modules are installed and manufacturing is highly challenging. Drones also need camera modules to accurately map coordinates received from GPS to satellite images from the sky and to clearly grasp flight trajectories and altitude. Humanoid robots are also expected to be commercialized in industrial fields, leading to increased demand.
We are also promoting automotive semiconductor packages as a new business. It is a business that combines several semiconductors used in automobiles into a single package. We have already been preparing the technology for two years, and since reliability verification for auto parts takes a long time, we expect mass production will take about two to three years. We are currently at the stage of providing samples to customers for testing, and discussions are proceeding positively. We plan to grow it into a business generating 400 billion to 500 billion won in revenue within 10 years.