This factory is expected to be completed around the middle of next year, producing semiconductor substrates to meet the needs of 5G, 6G networks and artificial intelligence (AI).
LG Innotek, a subsidiary of LG Group (South Korea), has announced plans to build a new semiconductor substrate manufacturing facility in Vietnam, with construction expected to begin in July 2026 and be completed around the middle of next year, according to the Korea Times.
LG Innotek is a subsidiary of LG specializing in electronic components, semiconductors, and many other high-tech products.
The company recently signed a memorandum of understanding (MoU) with the Hai Phong city government at its headquarters in Seoul (South Korea) regarding the construction of a new factory.
The factory is expected to be completed in May 2027, covering an area of approximately 330.000 m², equivalent to about 45 football fields. The investment will be made directly by LG Innotek's subsidiary in Vietnam.
The factory will produce a wide range of advanced semiconductor substrates, including RF-SiP, FC-CSP, FC-BGA, etc., used in mobile devices, 5G/6G wireless connectivity technology, and high-performance chips used in data centers and artificial intelligence (AI) infrastructure.
LG Innotek stated that the choice of Hai Phong was based on three main factors: the company's existing experience in the local area, its proximity to major semiconductor packaging and testing facilities, and relatively competitive production costs.
According to the Korea Times, LG Innotek's investment in Vietnam comes amidst growing global demand for semiconductor substrates.
Demand for RF-SiP is projected to increase with the widespread adoption of 5G and the future 6G networks, and FC-CSP benefits from the trend of on-device AI, which demands high-performance yet low-power chips.
For FC-BGA, demand has also surged thanks to the wave of investment in AI infrastructure by major technology corporations worldwide.
Source: Tuoi Tre Newspaper
