Haesung Optics, a secondary supplier to Samsung, will sell its camera module business.
The company said it will continue the lens module business, however, though the operation will be now smaller.
In the first quarter, Haesung recorded only 700 million won in sales in its camera module business.
This is smaller than the sales from actuators which was 30.5 billion won and lens module which was 4.7 billion won.
Back in 2018, the camera module business had recorded 37.5 billion won in sales. This surged to 149.3 billion won in 2019 but dipped again to 34.8 billion won in 2020. It saw high demand for multi-camera modules back in 2019.
Haesung said it saw orders for its camera module dip from its local customer and Chinese smartphone makers.
The company ships its camera modules to Samsung Electro-Mechanics.
Haesung’s lens unit saw shipment decline due to more Chinese lens makers entering the arena.
In the first quarter, Haesung recorded 36.9 billion won in sales and 6.8 billion won in operating income. A company spokesperson said the downturn was caused by the global chip shortage.
They said, however, that the firm is expecting earnings to improve as the shortage eases and its component supply to smartphones increase.
Profitability will also increase from rising shipment of budget model smartphones, they added.
Haesung was reorganizing its actuator and lens businesses. It was increasing spending on the former.
Actuator for optical image stabilization is expected to be applied to budget model smartphones later this year, which will help growth, the spokesperson said.
Haesung is planning for a paid-in capital increase of shares in July.