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LG Innotek, a camera module supplier for Apple iPhones, said on Wednesday it will invest $1.07 billion to expand the production capacity of camera modules and other electronic parts.

The South Korean electronics parts maker 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, reports Yonhap news agency.

Apple is likely to use its long-time camera module supplier LG Innotek and parts maker Jahwa Electronics for the procurement of folded zoom camera modules, reports claimed.

South Korean camera module parts maker Jahwa Electronics will spend 191 billion won on a new optical image stabilization (OIS) actuator production facility.

Apple had visited the South Korean company's facilities last year for a review, reports The Elec.

Folded zoom uses prisms to fold the light entering the image sensor like periscopes.

Apple will soon decide whether it will apply folded zoom for its new iPhones.