LG Innotek is set to kick off the construction of its $1 billion semiconductor substrate packaging plant in Vietnam’s northern coastal city of Hai Phong, in the third quarter of 2026.
The project is located in Nam Dinh Vu Industrial Zone within the Dinh Vu-Cat Hai Economic Zone, marking the first project in Hai Phong’s newly established Free Trade Zone, Hai Phong People’s Committee said in a statement last Friday.
The plant will cover 323,812 square meters of land by LG Innotek Vietnam Hai Phong Co., Ltd.. It will produce RF-SiP, FC-CSP, and FC-BGA semiconductor substrates. Trial operations are expected in the third quarter of 2027 and full-scale mass production in the third quarter of 2028.
The expansion forms part of LG Innotek’s dual production strategy, under which its Gumi facility in South Korea’s North Gyeongsang province will serve as a mother factory focused on new technology development and high-value products. The Hai Phong plant will serve as a production base for general-purpose semiconductor substrates.
In a statement last month, LG Innotek said its Gumi facility is currently operating near full capacity, making the expansion necessary. Hai Phong is the optimal choice, thanks its existing local infrastructure, geographic proximity to major semiconductor back-end companies, and cost competitiveness.
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 requiring low-power, high-performance chips, and FC-BGA by sustained AI investment from global technology companies. LG Innotek said the package solutions business is a core growth engine for the company, and that LG Innotek aims to grow revenue from the segment to over KRW3 trillion ($1.96 billion) by 2030.
LG Innotek Vietnam Hai Phong was established in September 2016 with an initial $550 million investment at its V1 factory, focusing on camera module production. The company has since expanded to three factories with total registered investment exceeding $2 billion.
South Koean chaebol LG Group, the parent firm of LG Innotek, has invested a total of $10.6 billion across seven major projects in Hai Phong.
Korea’s LG already invests $10.6B in Vietnam, to build semiconductor substrate factory in Hai Phong