Haesung to exit camera and lens businesses
Firm to focus on OIS
Haesung Optics said on Thursday that it will exit its camera module and lens businesses.
It will focus its efforts on optical image stabilization (OIS) and actuators, the firm said.
Back in May, Haesung had said it plans to sell its camera module business while it will reduce its lens operation.
But it is now planning to end its lens business as well.
The company said its local customer __ referring to Samsung Electro-Mechanics __ usually makes high-end camera modules but a local conglomerate __ meaning Samsung __ is expanding its focus on mid- to low-end phones.
This has caused orders for high-end camera modules to decline, Haesung explained.
On why it was exiting its lens business, the company said Chinese and Taiwanese companies were using their superior production capacity and patents to expand their supply to a South Korean conglomerate.
This has caused Haesung to lose orders and record large operating losses, it said.
The company will use the funds from selling the two businesses to focus on its OIS business.
It will also secure 27 billion won through a share offering, the firm added.