July 9, 2026 /SemiMedia/ — LG Innotek will invest $1 billion in Vietnam to build a semiconductor package substrate plant, according to local government officials.

The facility has been approved for construction in Hai Phong and will cover an area equivalent to about 45 football fields. It is expected to begin operations in 2027 and enter mass production in 2028.

LG Innotek said the plant will produce chip substrates, including ball grid array substrates and system-in-package modules. These products are used in semiconductor packaging and serve as key components connecting chips, package structures and end systems.

LG Innotek’s main production base for semiconductor-related components is currently located in Gumi, South Korea. The company said having two production bases will help it target substrate sales of 3 trillion won, or about $1.98 billion.

An LG Innotek executive said the company will use a dual-track production strategy. The Gumi plant in South Korea will serve as a “mother factory,” focusing on the development of new semiconductor substrates and the production of new and high-value-added products. The expanded Vietnam plant will serve as a production base for general semiconductor substrates.

The company selected Hai Phong partly because of its proximity to major semiconductor back-end companies. Industry sources said this could help LG Innotek improve customer response times and strengthen support for packaging, testing and electronics manufacturing customers.

As demand grows from AI servers, high-performance computing, smartphones, automotive electronics and consumer devices, package substrates are becoming a more important part of the semiconductor supply chain. BGA, SiP and other high-density packaging formats require higher substrate precision, layer counts, dimensional stability and mass production capability.

Vietnam is also attracting more electronics and semiconductor-related investment. LG Group has already built a significant presence in Hai Phong, including businesses related to camera modules, displays and electronics manufacturing. LG Electronics has also expanded automotive and home appliance software development operations in Vietnam.

Industry analysts said LG Innotek’s Vietnam investment shows that South Korean electronics supply chains are moving more manufacturing capacity into Southeast Asia. For LG Innotek, the Vietnam plant can handle general substrate volume production, while the Gumi site retains R&D and high-value manufacturing functions.