LG Innotek to develop chip substrate plant in Vietnam

LG Innotek to develop chip substrate plant in Vietnam

LG Innotek, a South Korea-based global leader in materials and component manufacturing, will establish a new plant in Vietnam as part of its expansion in semiconductor substrate manufacturing.

LG Innotek headquarters in Seoul. Photo: LG Innotek

On June 4, LG Innotek signed an MoU with Haiphong city. Under the agreement, LG Innotek will expand its semiconductor substrate factory in the city, directly funded by LG Innotek’s Vietnamese subsidiary.

Covering approximately 330,000 square metres, the facility is scheduled to begin construction in July 2026 and be completed by May 2027.

The factory will specialise in producing 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).

The company’s representative said, “Under the dual-manufacturing strategy, our local facility in Gumi will serve as a mother factory dedicated to developing new technologies and producing new models and high-value products, while the expanded Vietnam facility will function as a mass-production base for general-purpose semiconductor substrates.”

The dual-manufacturing strategy is expected to improve the company’s productivity and profitability while raising its competitiveness.

The expansion is driven by the growing global demand for semiconductor substrates. RF-SiP demand is on the rise amid the widespread 5G adoption and future rollout of 6G.

Meanwhile, FC-CSP growth is fuelled by on-device AI drives that require low-power, high-performance chips. FC-BGA substrates are also experiencing rising demand as global big tech companies ramp up AI infrastructure investment.

LG Innotek is currently operating its semiconductor substrate production lines at its Gumi facility near full capacity. The company seeks to expand production capacity through additional investment.

The company has selected Haiphong for various reasons, including ease of infrastructure construction, proximity to major semiconductor back-end companies, and relatively low production costs.

VIR