LG Innotek, the material arm of South Korean chaebol LG, will to expand its semiconductor substrate production into Vietnam by building a factory in the northern coastal city of Hai Phong.
LG Innotek and Hai Phong authorities have signed a memorandum of understanding for the collaboration, LG Innotek said in a statement on Thursday. The signing was part of a working session between Hai Phong authorities and LG in South Korea, featuring and LG Innotek President Moon Hyuk-soo.
LG Innotek plans to begin the construction of the new factory in July 2026, targeting completion in May 2027. The facility’s size is equivalent to 45 football fields, and will produce RF-SiP, FC-CSP, and FC-BGA semiconductor substrates.
The investment is in line with LG Innotek’s plan to increase revenue from the package solution business to over KRW3 trillion ($1.95 billion) by 2030.
On the same day, Hai Phong authorities also signed separate MOUs with LG Electronics and LG Displays. Under the agreement with LG Electronics, the two sides agreed on standardized workforce training and strengthened trainee exchange programmes. With LG Displays, the city acknowledged proposals on ensuring stable power supply, land support for warehousing, and talent attraction.
Under LG Innotek’s dual production strategy, its Gumi facility in North Gyeongsang province will serve as a major factory focused on new technology development and high-value products. The Vietnam plant will operate as a production base for general-purpose semiconductor substrates.
LG Innotek said demand for all three substrate types is growing rapidly — RF-SiP driven by 5G adoption and anticipated 6G rollout, FC-CSP by on-device AI applications, and FC-BGA by sustained AI investment from global technology companies. Its Gumi facility is currently operating near full capacity, making the Vietnam expansion necessary, LG Innotek emphasized
LG has invested a total of $10.6 billion across seven major projects in Hai Phong, with LG Display accounting for the biggest portion of nearly $5.7 billion. The LG ecosystem in the city encompasses more than 50 satellite companies, accounts for 43 percent of the city’s total export value, contributes an average of $66 million annually to the city budget, and provides stable employment for nearly 31,000 local workers.