LG Innotek Begins Mass Production of Variable-Aperture Camera Modules for iPhone 18

LG Innotek is moving into full-scale mass production of variable-aperture camera modules expected to be used in Apple’s iPhone 18 series, due to be released in the second half of this year, according to industry sources. The move is seen as an effort to push past smartphone camera limits that have relied heavily on software processing by improving hardware instead.
 
Industry officials said on the 21st that LG Innotek recently built a dedicated production line for the modules at its plant in Gumi, North Gyeongsang Province, and completed preparations for mass production. Chinese suppliers Luxshare and Sunny Optical, which are responsible for key parts such as camera actuators, have also finished setting up their processes and are expected to begin shipping related components starting next month, the sources said.
 
With the supply chain coming online, LG Innotek is expected to start supplying initial volumes as early as July, the sources said, in a step aimed at ensuring stable parts availability for the iPhone 18 series, which is expected to be unveiled in September.
 
Variable aperture is a precision optical technology that adjusts the aperture depending on ambient light to optimize how much light enters the lens. Most smartphone cameras use a fixed aperture and rely on software correction, but a variable aperture physically opens and closes to control light intake.
 
In bright conditions, narrowing the aperture can improve resolution; in low light, widening it can reduce noise and produce clearer images. The technology is also valued for enabling more natural background blur effects, similar to DSLR cameras, through hardware rather than software, industry officials said.
 
The start of mass production is expected to intensify competition among smartphone makers, the sources said. Samsung Electronics is also reported to be accelerating development to add variable aperture to some higher-end models in its Galaxy S27 series, expected as early as next year. Samsung introduced variable aperture in the Galaxy S9 in 2018, but removed it from the following year’s model due to challenges including miniaturization and manufacturing efficiency, the sources said.
 
LG Innotek aims to maximize first-mover advantages in next-generation smartphones by establishing mass production ahead of rivals. The company’s strategy is to demonstrate its camera-module capabilities in global markets as parts have become thinner and manufacturing processes have improved, the sources said.
 
Variable-aperture modules are expected to carry a higher average selling price than existing camera modules, potentially boosting profitability. As performance at the company’s optical solutions business is expected to improve from the third quarter, expectations are rising that annual operating profit could return to the “1 trillion won club.” If market expectations are met, LG Innotek would re-enter the 1 trillion won operating-profit range for the first time in four years since 2022.
 
“Amid growing criticism that the smartphone industry has hit hardware limits, variable aperture could be a decisive factor that stimulates replacement demand,” an industry official said. The official added that LG Innotek’s accumulated precision optical-solution capabilities could serve as a foundation for improving profitability.