LG Innotek has selected DEEP C Hai Phong 2 industrial zone for its new $1 billion semiconductor substrate manufacturing complex, marking the company’s first semiconductor production facility outside South Korea.
The investment certificate for the project was officially presented to LG Innotek Vietnam Hai Phong Co., Ltd. during a ceremony announcing the Prime Minister’s decisions on Hai Phong’s economic zones and the launch of the Hai Phong Free Trade Zone on 30th July 2026.
Occupying approximately 32 hectares Hai Phong Free Trade Zone in Dinh Vu – Cat Hai Economic Zone, currently being developed by Hai Phong city, the new facility is expected to become one of LG Innotek’s key global manufacturing bases for advanced semiconductor solutions.
The new project at DEEP C Hai Phong 2 is entirely separate from LG Innotek Vietnam Hai Phong’s existing camera module manufacturing complex. The investment represents a significant strategic expansion from camera module assembly into semiconductor substrates and packaging materials – critical components in the global semiconductor value chain.
The new facility will manufacture three core product lines designed to support next-generation telecommunications and artificial intelligence applications. These include semiconductor substrates for RF communication modules used in smartphones and wearable devices; substrates connecting memory chips and processors in mobile devices; and high-value substrates for CPUs, GPUs and server systems.
According to the latest implementation schedule, construction is set to begin in the third quarter of 2026, pilot production is expected in the third quarter of 2027, and mass production is scheduled to commence in the third quarter of 2028. In addition to its manufacturing operations, the project will also include factory, office, and warehouse leasing facilities to support the broader semiconductor ecosystem.
Beyond its investment scale, the project’s most significant feature lies in its production of high-end semiconductor substrates, often described as the hidden backbone of AI servers, data centres, smartphones, autonomous vehicles and other next-generation technologies that are reshaping industries worldwide.
LG Innotek’s decision to establish its US$1 billion semiconductor project in Hai Phong is expected to further strengthen the LG Group’s high-tech manufacturing ecosystem in Vietnam while reinforcing the city’s position as an emerging hub in the global semiconductor value chain.
“This is a very encouraging development,” said Bruno Jaspaert, CEO of DEEP C Industrial Zones. “The fact that a global company like LG Innotek once again selected Hai Phong to be the hometown for its newest investment demonstrates its strong confidence in the city’s long-term growth potential. We are equally proud that LG has selected DEEP C as the location for this landmark project.”
According to Jaspaert, the project’s significance extends beyond its US$1 billion value.
“The most important message is not the size of the investment itself, but LG’s decision to continue investing in Hai Phong. Companies only expand where they have confidence in the long-term prospects of the location,” he said.
Park Hong Keun, General Director of LG Innotek Vietnam Hai Phong, described Hai Phong as one of Vietnam’s most competitive and promising investment destinations.
“Highly skilled human resources, an open investment environment, and close cooperation between the government, local authorities and businesses have created strong momentum for the city’s sustainable development,” he said. “As a trusted long-term partner of Hai Phong, LG Innotek will continue expanding its investment, creating quality employment opportunities, attracting talent and contributing to the city’s sustainable growth.”
For DEEP C, supporting the growth of both LG Innotek and Hai Phong is particularly meaningful. Jaspaert believes that DEEP C’s integrated infrastructure, services and long-term commitment to sustainable industrial development have also contributed to LG’s decision to expand its presence in the city.
Free Trade Zone expected to strengthen Hai Phong’s investment appeal
Vietnam has yet to establish a fully operational free trade zone, making Hai Phong’s pioneering initiative a milestone with significant potential. The new model is expected to enhance the city’s competitiveness in attracting international investment by creating a more favourable business environment.
“In my view, the benefits of the Free Trade Zone extend far beyond investor attraction,” Jaspaert said. “An attractive policy framework that helps attract international experts, highly skilled professionals and qualified workers will significantly strengthen Hai Phong’s competitiveness compared to other locations in the region.”
“Competition for talent is becoming increasingly intense. Creating an environment where highly qualified people choose to live, work and build their careers in Hai Phong is just as important as attracting investment. That is what I value most about the Free Trade Zone, because it is designed not only to support businesses, but also to create a better place for people to live and work.”
“If Hai Phong successfully implements this model, I believe the city will enter a new phase of accelerated growth,” Jaspaert said. “It will give international investors greater confidence to make investment decisions more quickly. When companies think of a Free Trade Zone in Vietnam, Hai Phong should become their first choice. Implemented effectively, this model has the potential to create a very bright future for the city.”
The Hai Phong Free Trade Zone (Locations 2 and 3), which encompasses Lach Huyen Port, DEEP C Hai Phong 2 Industrial Park and DEEP C Hai Phong 3 Industrial Park, spans 3,369 hectares. The zone was established by the Hai Phong People’s Committee under Decision No. 4068/QD-UBND dated 13 October 2025, pursuant to the pilot special mechanisms authorized by the National Assembly under Resolution No. 226/2025/QH15.
