LG Innotek plans to expand its semiconductor substrate plant in Vietnam, targeting over 3 trillion won in revenue from its package solution business by 2030.
On June 4, LG Innotek signed a memorandum of understanding (MOU) with Hai Phong City at its LG Science Park in Magok, Seoul, regarding the investment for the plant expansion.
The new semiconductor substrate plant will cover approximately 33,000 square meters, equivalent to 45 soccer fields, in the Hai Phong area. The plant, which will be directly invested in by LG Innotek's Vietnamese subsidiary, is set to begin construction in July and is expected to be completed by May 2027. It will produce key semiconductor substrates, including RF-SiP, FC-CSP, and FC-BGA.
This investment is a response to the increasing demand for semiconductor substrates driven by the expansion of on-device artificial intelligence (AI) and the growing investments in AI by global tech giants. Currently, the semiconductor substrate production line at the Gumi facility is operating near full capacity.
LG Innotek stated, "We plan to develop the Gumi facility into a 'mother factory' dedicated to the development of new semiconductor substrate technologies and high-value product production, while utilizing the expanded plant in Vietnam as a base for general-purpose products, implementing a dual production site strategy."
Hai Phong offers advantages such as strong customer responsiveness due to its established infrastructure and proximity to major semiconductor backend processing companies, as well as excellent cost competitiveness.
Moon Hyuk-soo, CEO of LG Innotek, said, "Through our dual production site strategy, we aim to grow our package solution business revenue to over 3 trillion won by 2030 and increase its profit contribution to the level of our optical solution business."
* This article has been translated by AI.
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