[CES 2024] 'Focus on Automotive Electronics' LG Innotek... Moon Hyuksoo "Aiming for No.1 in Autonomous Driving Sensing Solutions"

LG Innotek's First Official Move as the Face of the Company
Announces Expansion of Automotive Business... "In a Long-Term Phase"

Moon Hyuk-soo, CEO of LG Innotek, revealed on the 10th (local time) that the company is expanding its factory in Mexico that produces automotive components, showing a strong commitment to expanding its automotive business. He also expressed his ambition to become the world’s number one company in the autonomous driving sensing solutions sector in the long term.

Moon Hyuk-soo, CEO of LG Innotek, is answering questions from reporters at the CES event in Las Vegas, USA, on the 10th (local time). / Photo by LG Innotek

On the same day, Moon met with reporters at CES 2024, the world’s largest electronics and IT exhibition held in Las Vegas, USA, to announce future business plans. Having been appointed as CEO through the year-end personnel announcement, this was his first official activity in the role, and he stated, "We are transitioning from mobile to automotive," forecasting changes not only in the overall industry trend but also in the company’s core products.

Moon officially confirmed the expansion of the San Juan del Rio factory in Mexico, which produces automotive components. He said, "The site of the Mexico factory is about 3,000 pyeong, but last year we purchased a factory site of 30,000 pyeong. It took a long time to acquire the land, but now we have started designing and constructing the building." He added, "Mass production is expected to begin around the first half of next year."

Regarding concerns about the recent slowdown in the growth of the electric vehicle and future car markets, he said, "Our main focus is on lighting and advanced driver assistance systems (ADAS), which are related to autonomous driving. We are taking a longer-term perspective."

He also explained, "In the automotive sector, once you decide to pursue something, it takes about 10 years. Visible results will likely come together around 2027 or 2028 for businesses that are being scaled up significantly." He added, "Next year, we expect some results from the seeds we planted in the past."

The poor market outlook this year remains a challenge. Moon said, "This year, we set our performance target to grow slightly compared to last year. If the PC and smartphone markets grow due to on-device AI despite the economic downturn, we will grow together, but if not, it might be difficult to match last year’s performance." However, he emphasized, "We will continue to achieve sustainable growth even in this situation."

In the long term, the goal is to become number one in autonomous driving sensing solutions. Previously, LG Innotek announced plans to expand its business into the autonomous driving sector based on smartphone technology and accumulated mass production experience.

Moon said, "It is difficult to generate profits by selling just a single automotive component," and mentioned plans to collaborate with LG affiliates in the automotive business. He added, "If you visit LG Electronics’ CES booth, you will see Alphabl, a concept car introduced by LG Electronics. We intend to create products through cooperation with our affiliates."

He stated, "LG Innotek is not a company that makes just one thing; it is a company that produces components that enter industrial changes. Therefore, we want to build an image as a component company that makes our customers winners."

Meanwhile, during CES, Moon toured exhibition booths and said, "I felt that a lot has been realized in terms of how AI is being used." He explained, "I sensed many ideas on how to use it, and there were many places that demonstrated this."

This content was produced with the assistance of AI translation services.