Key facts
- LG Innotek will invest $1 billion in a new semiconductor substrate manufacturing plant in Hai Phong, Vietnam.
- The plant will cover approximately 330,000 square meters.
- Construction is expected to start in July and be completed by May 2027.
- The facility will produce advanced semiconductor substrates including RF-SiP, FC-CSP, and FC-BGA.
- This investment is part of LG Innotek's strategy to diversify manufacturing and expand chip packaging solutions.
South Korean conglomerate LG will invest $1 billion to establish a new semiconductor substrate manufacturing plant in Hai Phong, Vietnam. The facility, set to cover approximately 330,000 square meters, is a significant expansion of LG Innotek's operations in the country and highlights Vietnam's growing role in higher-value segments of the global semiconductor supply chain.
Construction of the plant is expected to commence in July and be completed by May 2027. It will produce advanced semiconductor substrates, including radio frequency-packed system (RF-SiP) chip substrates, flip chip-chip scale package (FC-CSP) chip substrates, and flip chip ball grid array (FC-BGA) chip substrates. These components are crucial for devices supporting 5G, 6G, and AI technologies.
This move is part of LG Innotek's dual-production strategy, with its Gumi plant in South Korea focusing on research, development, and high-value products, while the Vietnam facility will handle mass production. The company cited Hai Phong's developed industrial infrastructure, proximity to related companies, and logistics as key factors for the investment.
LG Innotek's CEO, Moon Hyuk-soo, stated that the chip packaging solutions segment is a key growth driver, with a target to increase its annual revenue to over 3 trillion won (approximately $2 billion) by 2030. The company's existing production lines in South Korea are operating near full capacity, necessitating this expansion to meet surging global demand for semiconductor substrates.