LG Innotek to Invest $1 Billion in New Semiconductor Substrate Plant in Vietnam
LG Innotek, a South Korean electronic components manufacturer and subsidiary of the LG Group, has received an investment registration certificate from the Haiphong Economic Zone Management Authority (HEZA) in Vietnam. The company plans to invest $1 billion to establish a new semiconductor substrate manufacturing facility within the DEEP C Haiphong 2 Industrial Park, located in the Haiphong free trade zone. This new plant is expected to cover an area of approximately 33 hectares. Construction is slated to commence in the third quarter of this year, with completion anticipated in the fourth quarter of next year. The announcement was made on June 8.
This significant investment by LG Innotek in Vietnam underscores the ongoing global trend of diversifying semiconductor supply chains away from traditional manufacturing hubs. The strategic decision to build a new facility in Haiphong highlights Vietnam's growing attractiveness as a manufacturing base, likely influenced by factors such as labor costs, government incentives, and geopolitical considerations. The expansion into semiconductor substrates, a critical component in advanced electronics, positions LG Innotek to capitalize on the increasing demand driven by AI and other technological advancements. This move also reflects a broader strategy among global tech firms to mitigate risks associated with concentrated production and ensure greater resilience in their manufacturing networks over the next decade.
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