South Korea's LG Innotek to invest $1 billion in Vietnam chip substrate plant

(ECNS) -- South Korea's LG Innotek secured official approval for a $1 billion semiconductor substrate factory in Hai Phong, Vietnam, marking the first high-tech project in the city's new free trade zone, as Vietnam strengthens its position in high-value chip packaging supply chains.

The investment plan follows a memorandum of understanding (MOU) signed with the city of Hai Phong last month and provides further details on the project's scale and timeline.

The planned facility will cover 330,000 square meters, equal to 45 standard football pitches within Nam Dinh Vu Industrial Park. Construction kicks off this year, with trial production slated for Q3 2027 and full mass production in Q3 2028.

The plant will mass-produce RF-SiP and FC-CSP substrates for smartphones, 5G/6G and edge AI devices, while a separate second-phase FC-BGA line for AI servers remains under negotiation with global tech clients.

Vietnam's semiconductor ecosystem has long centered on chip testing and packaging, with sustained investments from Intel, Amkor and Samsung gradually lifting its industrial complexity. LG's landmark project further cements the country's pivotal role in global advanced packaging segments.