LG Innotek, an affiliate of the Republic of Korea's LG Group, has announced a plan to build its first semiconductor substrate plant in Vietnam, marking a significant step in expanding its production capacity and strengthening its semiconductor packaging solutions business.

A step in the semiconductor chip manufacturing process.

LG Innotek signed a memorandum of understanding (MoU) with the Hai Phong municipal government on June 4 at LG Science Park in Seoul for the investment project.

The signing ceremony was attended by Hai Phong People's Committee Chairman Do Thanh Trung, LG Innotek CEO Moon Hyuk-soo and senior company executives.

Under the agreement, LG Innotek will construct the new facility in Hai Phong through its Vietnamese manufacturing subsidiary. Construction is scheduled to begin next month and be completed by May 2027.

While the company is operating a camera module plant in Vietnam under its optical solutions business, the new project will be its first semiconductor substrate production facility in the country.

LG Innotek said Hai Phong was selected thanks to its established infrastructure, proximity to semiconductor packaging and testing companies, and competitive production costs.

The plant will cover approximately 330,000 sq.m and manufacture advanced semiconductor substrates, including Radio Frequency System-in-Package (RF-SiP), Flip Chip-Chip Scale Package (FC-CSP) and Flip Chip Ball Grid Array (FC-BGA) products.

The investment forms part of LG Innotek's dual-hub strategy, under which its Gumi facility in the Republic of Korea will serve as the parent plant focusing on research and high-value-added products, while the Hai Phong factory will specialise in large-scale production of standard semiconductor substrates.

The company said the expansion is aimed at strengthening the competitiveness of its semiconductor packaging business and meeting growing market demand.

Demand for RF-SiP substrates is expected to rise with wider adoption of 5G and the future rollout of 6G technologies, while FC-CSP and FC-BGA products are projected to benefit from increasing demand driven by on-device artificial intelligence and global AI investment.

LG Innotek noted that its semiconductor substrate production lines in Gumi are operating at near full capacity, making additional manufacturing capability essential to accommodate rising orders.

The company is also expanding domestic investment. Last March, it signed an agreement with Gumi city to invest around 600 billion KRW by the end of 2026 to enhance its packaging solutions business and related operations.

CEO Moon Hyuk-soo said the diversified manufacturing strategy would help grow the semiconductor packaging solutions business into a sector generating more than 3 trillion KRW in revenue by 2030, with profitability comparable to the company's optical solutions business.

Bac Ninh moves to accelerate semiconductor projects

BAC NINH - Authorities in the northern province of Bac Ninh are moving to remove obstacles and speed up the implementation of semiconductor industry projects, local officials said.

Intel deepens engagement in Vietnam’s semiconductor industry

According to the Saigon Hi-Tech Park (SHTP) management board, Intel has relocated part of its production line from Costa Rica to SHTP as part of its global manufacturing restructuring strategy aimed at improving efficiency and competitiveness.

 

Semiconductor workforce training aligned with market demand

Linking research, application, and the market in developing the semiconductor industry requires a tightly coordinated model among the State, educational institutions, and enterprises. In this framework, universities and research institutes serve as the primary providers of human resources, considered one of the most significant bottlenecks of the semiconductor industry.

 

Bac Ninh steps up semiconductor cooperation with Amkor Technology in Incheon

BAC NINH - A delegation from the Northern province of Bac Ninh on April 24 met with global semiconductor group Amkor Technology in Incheon city (Republic of Korea), seeking to deepen cooperation and expand investment in the chip industry.

Bac Giang College of Industrial Technique focuses on semiconductor training

BAC NINH - The Bac Giang College of Industrial Technique (BCIT) in Bac Ninh province has signed a cooperation agreement with Micro Commercial Components Vietnam Co., Ltd., part of China’s Yangjie Group in Yen Phong II-C Industrial park to develop high-quality human resources for the semiconductor industry.

Ho Chi Minh City sets sights on becoming semiconductor hub

A central component of the plan is expanding cooperation with global technology leaders such as AMD, NVIDIA and Qualcomm. These partnerships are expected to support technology transfer, strengthen chip design capabilities and help the city move further up global semiconductor value chains.