en.Wedoany.com Reported - South Korean electronic components manufacturer LG Innotek will invest $1 billion to build a semiconductor packaging substrate manufacturing base in Vietnam's Hai Phong. The project is located in the DEEP C Hai Phong 2 Industrial Park, implemented by LG Innotek Vietnam Hai Phong Co., Ltd., covering approximately 32 to 33 hectares of land, with construction scheduled to begin in the third quarter of 2026.
This project marks LG Innotek's first semiconductor substrate manufacturing base in Vietnam and a key milestone in expanding its packaging solutions business. Semiconductor substrates are positioned between chips and circuit boards, serving functions such as electrical signal connection, mechanical support, heat dissipation, and packaging integration, making them critical materials and structural components in the advanced packaging chain. As AI servers, 5G communications, automotive electronics, and high-performance terminals impose higher demands on chip packaging, the demand for substrates such as RF-SiP, FC-CSP, and FC-BGA continues to grow. These products require high precision in circuit routing, interlayer interconnection, warpage control, material stability, and batch consistency, making their manufacturing significantly more challenging than ordinary electronic substrates.
The Hai Phong plant will produce semiconductor substrates including RF-SiP, FC-CSP, and FC-BGA. Among these, RF-SiP is primarily used for radio frequency system-in-package, targeting 5G and future 6G communication devices; FC-CSP is used for miniaturized, high-performance, and low-power chip packaging, serving mobile terminals and edge AI applications; FC-BGA is more commonly applied in high-performance computing, AI chips, and server processor packaging scenarios.
The project timeline has progressed from preliminary cooperation intentions to the investment implementation stage. The new plant is planned to start construction in the third quarter of 2026, begin trial operations in the third quarter of 2027, and enter commercial mass production in the third quarter of 2028. Earlier announced construction schedules pointed to a July 2026 start and May 2027 completion; the latest investment plan places the project within the Hai Phong Free Trade Zone and the DEEP C Hai Phong 2 Industrial Park framework, further specifying the $1 billion investment scale and mass production milestones.
LG Innotek's choice of Hai Phong is related to its long-term operational foundation in the area. The company has previously conducted camera module, optical component, and electronic parts businesses in Hai Phong, establishing a base for manufacturing, personnel, supply chain, and local collaboration. Northern Vietnam also clusters resources for electronics manufacturing, packaging and testing, component supply, and port logistics. Hai Phong's industrial parks, ports, and bonded logistics conditions are favorable for equipment imports, material supply, and finished product outbound transport for semiconductor packaging substrates.
This new plant will also support LG Innotek's dual-base production strategy. The Gumi base in South Korea will continue to handle new technology development and high-value-added product manufacturing, while the Hai Phong base in Vietnam will focus on large-scale production of general semiconductor substrates. LG Innotek plans to increase its packaging solutions business revenue to over 3 trillion Korean won by 2030; the $1 billion semiconductor substrate project in Hai Phong will become a core factory in its RF-SiP, FC-CSP, and FC-BGA capacity expansion and overseas manufacturing system.
