LG Innotek, an affiliate of LG Group, has announced plans to build its first semiconductor substrate manufacturing plant in Vietnam, marking a major step in expanding its production capacity and strengthening its semiconductor packaging solutions business.
The company signed a memorandum of understanding with the Hai Phong government to develop the project through its Vietnamese subsidiary. Construction is expected to begin next month and be completed by May 2027.
Located in Hai Phong, the new facility will be LG Innotek’s first semiconductor substrate plant in Vietnam, complementing its existing camera module operations. The city was selected for its strong infrastructure, proximity to semiconductor packaging and testing companies, and competitive production costs.
Covering approximately 330,000 square meters, the plant will manufacture advanced semiconductor substrates, including RF-SiP, FC-CSP, and FC-BGA products. The investment supports LG Innotek’s dual-hub strategy, with its Gumi facility in South Korea focusing on research and high-value products, while Hai Phong specializes in large-scale production.
The expansion is intended to meet growing demand driven by the adoption of 5G and future 6G technologies, as well as increasing investment in artificial intelligence and AI-enabled devices. With production lines in Gumi operating near full capacity, additional manufacturing capability has become essential.
In parallel, LG Innotek is investing approximately KRW 600 billion (US$385 million) in its Gumi operations by the end of 2026 to further strengthen its semiconductor packaging business.
CEO Moon Hyuk-soo said the company’s diversified manufacturing strategy aims to grow its semiconductor packaging solutions business into a sector generating more than KRW 3 trillion in annual revenue by 2030, with profitability comparable to its optical solutions business.
Source: VNS
