LG invests $1 billion in semiconductor packaging plant in Haiphong, Vietnam

LG Innotek announced a US$1 billion investment to build a semiconductor packaging and substrate plant in Haiphong, Vietnam. The facility will cover an area equivalent to about 45 football pitches, target commissioning in 2027 and begin mass production of chip substrates such as ball‑grid arrays (BGA) and system‑in‑package (SiP) modules in 2028.

The Haiphong site will function as a high‑volume production hub, while LG’s existing plant in Gumi, South Korea, remains the R&D and high‑value‑added centre. A LG representative said, "The Gumi plant will focus on developing new substrate technologies and high‑value products. The new plant in Vietnam will be a base for multi‑purpose substrate production." The project is the first high‑tech semiconductor‑packaging plant in Vietnam’s new free‑trade zone and sits near other post‑fab facilities, enhancing supply‑chain responsiveness.

LG’s investment follows earlier Korean and other foreign investors – Intel, Amkor and Samsung – that have helped Vietnam develop an ecosystem for chip assembly, testing and packaging. Nikkei observed, "Although Vietnam is still far from becoming a chip‑making powerhouse, the latest investments show the country is gradually moving up the semiconductor value chain." The move reflects LG’s broader shift from consumer‑electronics assembly toward higher‑value semiconductor components, reinforcing Vietnam’s transition from basic electronics assembly to more advanced chip‑related production.