LG Innotek to build new semiconductor substrate plant in Vietnam

LG Innotek, a subsidiary of South Korea's LG Group, announced plans to construct a new semiconductor substrate manufacturing facility in Hai Phong, Vietnam. The company signed a Memorandum of Understanding (MoU) with the Hai Phong city government in Seoul, South Korea, for the new plant.

The facility is slated to begin construction in July 2026 and is projected to be completed by May 2027. Covering an area of approximately 330,000 square meters, equivalent to about 45 football fields, the investment will be directly managed by LG Innotek's Vietnamese subsidiary.

This new plant will focus on producing various advanced semiconductor substrates, including RF-SiP, FC-CSP, and FC-BGA. These components are crucial for mobile devices, 5G/6G wireless connectivity technologies, and high-performance chips used in data centers and artificial intelligence (AI) infrastructure.

LG Innotek cited three primary reasons for selecting Hai Phong: its existing operational experience in the region, its proximity to major semiconductor packaging and testing companies, and relatively competitive production costs. The investment aligns with the growing global demand for semiconductor substrates.

Demand for RF-SiP is expected to rise with the increasing adoption of 5G and future 6G networks. FC-CSP is benefiting from the trend of AI on devices, which requires high-performance, low-power chips. Furthermore, the demand for FC-BGA is surging due to significant investments in AI infrastructure by major global technology corporations.