LG Innotek has received an Investment Registration Certificate from the Hai Phong Economic Zone Authority (HEZA) for a $1 billion investment to establish a new semiconductor substrate manufacturing base in DEEP C Hai Phong 2 industrial zone, within the Hai Phong Free Trade Zone.
First project in Hai Phong Free Trade Zone
LG Innotek has received an Investment Registration Certificate from the Hai Phong Economic Zone Authority (HEZA) for a $1 billion investment to establish a new semiconductor substrate manufacturing base in DEEP C Hai Phong 2 industrial zone, within the Hai Phong Free Trade Zone.
The new facility will occupy approximately 33 hectares, with construction scheduled in Q3 2026, and completion targeted for Q4 2027.
Once operational, the facility will serve as one of LG Innotek’s key global production bases for advanced semiconductor solutions, the first of its kind outside Korea.
Beyond its impressive scale, what truly distinguishes this investment is the product to be manufactured here. Advanced semiconductor substrates are among the most sophisticated components in modern electronics, serving as the invisible backbone of AI servers, data centres, smartphones, autonomous vehicles and other next-generation technologies that are driving a new era of global industrial transformation.
In addition to semiconductor substrate manufacturing, the project will include supporting facilities such as ready-built factories, offices, warehouses, and other completed infrastructure to serve industrial and commercial activities.
The new facility in DEEP C Hai Phong 2 Industrial Zone will operate separately from LG Innotek’s existing camera module manufacturing complex in Trang Due Industrial Park.
Expansion into semiconductor substrates
The new investment will expand LG Innotek’s operations in Hai Phong beyond camera modules into materials and components used in semiconductor packaging.
According to the company, the plant will manufacture three main product categories: RF-SiP, FC-CSP and FC-BGA substrates.
RF-SiP substrates integrate radio frequency chips, logic chips and passive components into a single package and are primarily used in wireless communication modules for smartphones and wearable devices.
LG Innotek expects demand to increase as 5G adoption expands and future 6G deployment drives next-generation communications.
FC-CSP substrates are used to connect application processors, baseband chips, memory chips, and other high-performance semiconductors to the main circuit board in mobile devices.
The company expects wider adoption of on-device artificial intelligence to boost demand for high-performance, low-power semiconductor solutions, supporting growth in premium application processor and memory chip substrates.
FC-BGA substrates, a higher value-added product, are widely used in CPUs, GPUs, servers, networking equipment and data processing systems. LG Innotek said growing investment in AI infrastructure by global technology companies is increasing both demand and technical requirements for these products.
LG Innotek plans to operate its semiconductor substrate business through a dual-manufacturing model. Its Gumi facility in South Korea will serve as the lead plant for advanced technologies, new product development and high-value products, while the Hai Phong facility will focus on high-volume production of mainstream semiconductor substrates.
A strategic milestone for DEEP C’s high-tech manufacturing ecosystem
The company said it selected Hai Phong because of its existing manufacturing experience in the city, available industrial infrastructure, proximity to semiconductor packaging and testing companies, and competitive production costs.
The investment reflects LG Innotek’s long-term confidence in the growing maturity of Haiphong’s industrial ecosystem and its ability to support increasingly sophisticated manufacturing operations.
“LG Innotek selected DEEP C not for cost competitiveness, but for infrastructure readiness, long-term operational confidence, proximity to the supply chain ecosystem, and the ability to scale globally from Vietnam We are proud that DEEP C continues to be the industrial platform of choice for global companies seeking to establish and expand high-tech operations in Northern Vietnam.”
– Koen Soenens, CSM Director of DEEP C Industrial Zones –
LG Innotek aims to increase revenue from its semiconductor packaging solutions business to more than 3 trillion won ($1.94 billion) by 2030. The $1 billion investment in Hai Phong forms part of its capacity expansion strategy as production lines at its Gumi substrate facilities are approaching full utilization.
About DEEP C Industrial Zones
DEEP C Industrial Zones (“DEEP C”) develops and operates an integrated network of industrial zones, port and logistics infrastructure, and utility services across Hai Phong and Quang Ninh in Vietnam. DEEP C has become a preferred destination for technology-driven investment, hosting leading global companies in electronics, advanced manufacturing, and high-value industries, including LG Innotek, USI, Pegatron, and Foxconn, etc.
