LG Innotek invests $1 billion in semiconductor production in Vietnam
South Korean giant LG Innotek has confirmed large-scale plans to expand its presence in Southeast Asia. In the third quarter of 2026, the company will begin construction of a new plant for manufacturing semiconductor substrates in the city of Haiphong, Vietnam. The capital investment exceeds $1 billion.
According to my analysis, this move is part of LG Innotek's global strategy to diversify supply chains and reduce dependence on traditional manufacturing bases in China and South Korea. The choice of Vietnam is no coincidence: the country is actively attracting foreign investment in the high-tech sector, offering tax incentives and developed infrastructure.
A trial launch of production lines is scheduled for the third quarter of 2027, with mass production expected to begin in the third quarter of 2028. The plant will specialize in producing critically important components for several growing segments: 5G infrastructure, high-performance chips for artificial intelligence, as well as devices with integrated AI functions.
From my perspective, this is a strategically sound decision. Demand for semiconductor substrates, especially for AI accelerators and network equipment, will only grow. LG Innotek, as one of the key players in this market, is laying the foundation for long-term dominance in the region.
Expert opinion: This investment is a clear signal to the market: Vietnam is establishing itself as a new hub for the semiconductor industry. For LG Innotek, this is not just an expansion of capacity, but a strategic step toward creating a closed-loop production cycle for next-generation technologies. Amid the global AI arms race, control over substrate production is becoming a matter of national and corporate security.