HCMC – South Korean electronics component maker LG Innotek has signed a memorandum of understanding (MOU) with the government of Haiphong City to build Vietnam’s first semiconductor substrate manufacturing plant.

Covering an area of 330,000 square meters, the project marks a major step in LG Innotek’s strategy to expand its production capacity and strengthen its semiconductor packaging solutions business. Under the agreement, construction of the plant is expected to begin next month and be completed by May 2027. The facility will be LG Innotek’s first semiconductor substrate production base in Vietnam. The company chose Haiphong for its well-developed infrastructure, strategic location near semiconductor packaging and testing partners, and cost advantages that support large-scale manufacturing. The new plant will produce advanced semiconductor substrates, including RF-SiP, FC-CSP, and FC-BGA products. The investment forms part of LG Innotek’s dual-production strategy, under which its plant in Gumi (South Korea) will serve as the “mother factory,” focusing on research, technology development, and high-value-added products, while the Haiphong facility will handle mass production of standard semiconductor substrates. The investment decision comes as LG Innotek’s existing production lines in Gumi are operating near full capacity, while demand for semiconductor substrates continues to rise, driven by the expansion of 5G networks, artificial intelligence applications, and high-performance processors. LG Innotek President and CEO Moon Hyuk-soo said the project is a strategic move aimed at achieving the company’s goal of generating more than 3 trillion won in annual revenue from its semiconductor packaging solutions business by 2030. Alongside its expansion in Vietnam, LG Innotek is investing around 600 billion won in its Gumi operations through the end of 2026 to strengthen its core competitiveness.