Intro: Autonomous Driving Market Outlook and Sensing Solution Changes

The generational transition of autonomous driving vehicles is happening rapidly. Level 2/2+ autonomy is expected to remain mainstream through 2035, after which the market will see the ascendance of level 3 and higher technology. However, we are already seeing the introduction of level 3 technology in 2023, and anticipate an early level 4/5 market opening in 2025.

Technological innovation in this space is driven by advances in sensing solutions. Autonomous driving sensing solutions typically use an optimal combination of sensors such as LiDAR(Light Detection And Ranging), RADAR(Radio Detection And Ranging) and Cameras to help autonomous vehicles fully perceive and develop a sophisticated understanding of their surroundings. Accurate and reliable recognition is essential for safe driving, emergency response, and decision-making while driving.

After achieving level 3 autonomy, the demand for ultra-precision sensors will continue to grow as the industry moves toward higher levels of autonomy, such as levels 4 and 5. As autonomous driving systems evolve further, the demand for higher resolution, longer range, and more accurate autonomous driving sensing solutions such as LiDAR, RADAR, Camera, and ultrasonic sensors will increase. In addition, technological innovation is required to ensure consistent performance even in challenging conditions such as rain, snow, fog, and extreme temperatures. Moreover, the increasing importance of Sensor Fusion technology, which can efficiently process and integrate data from various sensors to comprehensively understand and analyze the surrounding environment by relying on the collected data, is driving significant growth in demand for sensors based on this innovative technology.  

Sensing Solutions by Level of Autonomous Driving

Level 3 and Beyond: New Criteria for Automotive Component Suppliers

As the level of autonomous driving increases, more numerous – and more accurate – sensors are required. As advanced level 3+ autonomous driving sensors emerge as essential core elements of the automotive components, automotive component suppliers’ high-performance sensor mass production systems, design technology, and understanding of vehicle software and systems are emerging as the most important core competencies.

There are five major evaluation criteria for automotive component suppliers. The first is the differentiation of ultra-precision sensor production and design technology that can stably support OEMs’ autonomous driving roadmap and experience in developing various types of vehicle sensors. The second is proven autonomous driving sensing solution technology rooted in the optical and substrate sectors. The third is to secure Sensor Fusion technology that can realize safer autonomous driving with fewer sensors while exceeding the limits of individual sensors through Sensor Fusion. The fourth is to have an integrated platform based on hardware and software integration know-how and understanding of SDV (Software Defined Vehicle) that can realize the SDV value that OEMs seek. The fifth is price optimization capabilities along with stable supply of components through proven high-performance sensor manufacturing and mass production base.

LG Innotek Sensing Solutions: Key Differentiators

LG Innotek provides a portfolio of various sensors, from individual sensor modules that can support evolution beyond the current mainstream level 2/2+ to levels 3, 4, and 5, to Sensor Pod. LG Innotek has core competencies related to customer-specific design and manufacturing that can flexibly accommodate the autonomous driving requirements of various global OEMs based on its deep understanding of various automotive sensors and years of mass production experience. In addition, through collaborative research with major global sensor manufacturers, LG Innotek has experience in joint development and delivery of next-generation autonomous driving image sensors, and has the capacity to mass-produce high-performance, ultra-precision vehicle sensors with consistent quality based on our leadership position in the global camera market in the mobile sector. LG Innotek has developed optimal design and production systems through its deep institutional knowledge and technological prowess. 

LG Innotek Sensing Solution Differentiation Point

Manufacturing of Ultra-precision Sensors

LG Innotek’s ultra-precision sensor production capability has already been proven in the mobile market, as the company has a track record of successful design and mass-production of ultra-precision optical cameras. As the level of autonomous driving increases, human intervention is reduced, and sensors must inevitably become more complex and sophisticated to ensure ever-higher accuracy. For this reason, OEMs place great importance on sensor suppliers’ ultra-precision optical alignment (Active Alignment) technology and sensor calibration process (Calibration) capabilities – competencies that are essential for long-term reliability and safety of autonomous vehicles. Ultra-precise optical alignment enables precise positioning and orientation of optical and electronic components within the sensor. Next, a calibration process must be supported to fine-tune sensor performance and ensure that each sensor’s output is accurate and reliable. Maintaining a consistent level of quality across the entire production batch minimizes the risk of sensor failure or degradation over time.

Precise Manufacturing Solution: Active Alignment Process Technology

LG Innotek guarantees the quality, reliability and performance of sensors used in autonomous vehicles based on ultra-precision optical alignment and sensor calibration processes. For example, LG Innotek’s core competency is the advancement and refinement of LiDAR ultra-precision optical alignment, which operates with a combination of Tx/Rx. This represents a key example of the application of LG Innotek’s accumulated mobile-related design and production capabilities and optical camera technological expertise to the automotive component business: finding the optimal positions of the Tx/Rx optical systems, precisely adjusting the tilt and shift to the world’s most exacting standards, and optimizing the LiDAR production process. In the case of cameras, deviations in performance are minimized through ultra-precise optical alignment that accounts for vertical and horizontal rotation based on PCB or lens. Similarly, RADAR systems have also realized zero alignment error by incorporating laser sensors into production technology.

World-leading optical and substrate design technology

The key differentiators of LG Innotek’s sensing solutions, such as improved module performance, miniaturization and slimming of components, adverse weather performance, and Sensor Fusion, come from its world-leading optical and substrate design technology. LG Innotek provides a wide range of products such as camera modules and sensors. Through this diversified portfolio, it has responded to the needs of various industries and has enhanced its optical and substrate design capabilities. In addition, LG Innotek has improved its competency by reducing costs while ensuring quality and reliability by better controlling the production process with a vertical integration strategy that designs, manufactures, and assembles components in-house.

This competency extends to the design and production of cameras and LiDAR sensing solutions. The synergistic effects of technologies and production capabilities accumulated by LG Innotek in the mobile sector have extended to the autonomous vehicle sector, and LG Innotek has emerged as a world-class components company due to this point of differentiation. LG Innotek’s experience in designing and mass-producing mobile/IoT camera, such as ultra-wide-angle cameras, multi-cameras, and 3D sensing modules, is generating synergy in all stages from LiDAR ultra-precision design to production and verification. For example, LG Innotek optimizes LiDAR Tx/Rx Alignment – the core of LiDAR design – based on its mobile business experience.

In addition, by utilizing simulation capabilities honed in the optical and substrate sector, LG Innotek has improved module performance through robust design that maintains high resolution even in temperature changes, while ultrasonic welding technology contributes to miniaturization and slimming of sensing solutions. The heating solution that overcomes various natural phenomena such as snow and moisture also came from the know-how accumulated through optical system design. The composite and hybrid lens solutions for various applications demanded by OEMs also have their roots in LG Innotek’s world-leading optical and substrate design technology. The mmWave antenna applied to RADAR is also based on LG Innotek’s experience in designing array and waveguide antennas.

Ultra-precision sensor fusion design capabilities

LG Innotek has a sensing solution lineup that can accommodate various OEMs’ sensor fusion needs. LG Innotek can provide a sensor fusion solution that helps autonomous driving cars make timely and accurate decisions by applying an algorithm that processes LiDAR, RADAR, and Camera data in real time. In addition, it is possible to provide middleware and integration platforms that can seamlessly integrate the sensor system with other components of the vehicle, such as the central processing unit, communication system, and vehicle control system.

Securing manufacturing capability and price competency using SDV value-based hardware and software integrated development platform JEDFe

Global OEMs cite understanding of software as a key criterion for selecting a sensing solution partner. OEMs need a partner that can reliably support the SDV strategy, which OEMs are deploying to pursue mobility strategies after level 3. LG Innotek has clear differentiation in adopting the SDV strategy. From an SDV perspective, autonomous vehicle sensing solution providers must have comprehensive software capabilities to ensure seamless integration and optimal performance of their sensors within the broader autonomous driving ecosystem. Based on the JEDFe (Joined Evolving Digital Framework) developed by LG Innotek to facilitate the design and development of electronic components such as sensors, Camera modules, and communication devices, high-performance sensors are produced with stable yields in a mass production process.

JEDFe is a hardware and software integrated development platform. LG Innotek uses JEDFe to achieve digital-based manufacturing innovation in all areas from product design to production. For example, LG Innotek conducts virtual design and verification in a digital twin environment at the initial stage of design. In the mass production stage, high-quality and high-performance sensing solutions are stably produced in a smart factory environment. Unlike the traditional manufacturing environment, the smart factory environment collects all data generated throughout each process, using big data-based analysis and artificial intelligence-based production to continuously enhance quality and price competency in mass production.

LG Innotek JEDFe Development System integrated HW/SW

Accumulation of mass production experience and testing and certification capabilities

LG Innotek possesses a wide range of testing and certification capabilities. LG Innotek holds certifications for automotive components related to autonomous driving and electric vehicles and makes components that are faithful to the needs of OEMs through a state-of-the-art test environment. For example, LG Innotek performs NIR/SWIR transmitter and receiver optical function tests when creating LiDAR solutions, and also develops and applies customized test stations for each Tx/Rx transceiver. LG Innotek’s cloud-based digital data platform connects the entire process from design to production into one system, shares key data with OEMs, and maximizes SDV-related components and software design, verification, and production efficiency. This ensures accurate and reliable data collection and processing in autonomous vehicles. Since most leading LiDAR companies are small businesses with limited production quantities, LG Innotek’s mass production capabilities provide a competitive advantage, allowing the company to meet the growing demand for LiDAR sensors in the autonomous driving vehicle market. Currently, LG Innotek has established a separate LiDAR calibration, test, and verification line optimized through mobile ToF (Time-of-Flight) design and mass production experience. By utilizing this dedicated line, LG Innotek can ensure a stable supply of high-quality LiDAR products that meet industry standards and performance requirements.

Outro: Readiness for the future era of autonomous driving

Who will open the era of level 4 and 5 autonomous driving first? OEMs started fierce R&D competition to preoccupy the future market. The most important factor in implementing levels 4 and 5 is the ultra-precise sensor. While it will remain crucial to make sensors such as LiDAR, RADAR, and Cameras conform to level 4 and 5 requirements, Sensor Fusion technology for more precise sensing that compensates for the shortcomings of each individual sensor will be of the utmost importance.

Based on its expertise in camera and substrate design and large-scale mass production, LG Innotek has a competitive edge in agile development and supply of advanced sensor solutions that meet the requirements of autonomous driving systems that encompass both the present and the future. LG Innotek has created synergy with sensor technologies such as LiDAR, RADAR, and Cameras based on more than 20 years of experience in designing and mass-producing high-quality camera modules and substrates for mobile devices and IoT applications – two decades spent establishing a strong quality control process, methodology, and platform. In addition, based on its deep understanding of SDV, LG Innotek can accommodate the demand for hardware and software integration. LG Innotek’s large-scale mass production capabilities position the company ideally to meet the expanding production scale of sensor technology for the growing autonomous vehicle market.

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