SEOUL, LG Innotek Co., a South Korean major electronics parts maker, said Wednesday it will invest 1.4 trillion won (US$1.07 billion) to expand the production capacity of camera modules and other electronic parts.

LG Innotek, a camera module supplier for Apple's iPhone, signed a memorandum of understanding with the city of Gumi, North Gyeongsang Province, to make the investment to add production lines in its Gumi manufacturing campus by the end of next year.

The envisioned investment will be mainly used to increase production of camera modules for smartphones and build a new manufacturing line to produce high-end semiconductor packaging solutions, called Flip Chip Ball Grid Array (FC-BGA), the company said.

With the investment, the company's Gumi manufacturing facility will be expanded to 370,000 square meters in size, tantamount to 52 soccer fields combined.

Source: Yonhap News Agency