LG Innotek Expands Semiconductor Substrate Production with Major Vietnam Factory Investment

LG Innotek is strategically accelerating its semiconductor packaging substrate business through a major manufacturing expansion. The company has officially signed a Memorandum of Understanding with the city of Haiphong, Vietnam, to establish a brand-new production facility. Under this two-pronged global strategy, LG Innotek will optimize its production efficiency. The existing Gumi plant in South Korea will serve as the core hub for pioneering new technologies and manufacturing high-value-added products. Meanwhile, the new Vietnam facility, spanning an impressive area of approximately 330,000 square meters, will focus on the high-volume production of standard mainstream products. These include Radio Frequency System-in-Package, Flip Chip Chip Scale Package, and Flip Chip Ball Grid Array substrates.

According to market research, the demand for advanced packaging substrates is surging due to the rapid growth of artificial intelligence, 5G communications, and high-performance computing. LG Innotek aims to capitalize on this trend by securing a resilient supply chain. The investment will be executed through its local Vietnamese subsidiary. Construction is scheduled to begin in July, with the official completion targeted for May 2027. By dual-sourcing its production across South Korea and Vietnam, LG Innotek expects to significantly boost its supply capacity, manufacturing productivity, and overall profitability. The ultimate goal of this strategic move is to achieve annual sales of 3 trillion Korean Won in the substrate packaging solution business by the year 2030.