LG Innotek’s 10-Year-Old Vietnam Production Subsidiary Emerges as a Future Growth Base with Semiconductor Substrates

【Hanoi, Vietnam—Kim Jun-seok, Special Correspondent】LG Innotek’s Hai Phong production base in Vietnam, its largest overseas facility, is expanding well beyond its core camera-module business into semiconductor substrates. After investing KRW 2.5 trillion in optical-solutions production, the company plans to invest an additional KRW 1.4 trillion to build a high-value semiconductor-substrate production base. Once a global hub for optical solutions, Hai Phong is evolving into a key forward base supporting LG Innotek’s future growth businesses.
According to Vietnamese media and industry sources on the 6th, LG Innotek’s Vietnam Hai Phong production subsidiary held a ceremony the previous day to mark its 10th anniversary. Moon Hyuk-soo and other senior LG Innotek executives attended, along with prominent local officials, including the secretary of the Hai Phong City Party Committee, the chairman of the People’s Committee and the vice chairman.
“LG Innotek has made a major contribution to the region’s industrial development and economic growth over the past decade,” said Le Trung Kien, vice chairman of Hai Phong City’s People’s Committee. “We highly value its role in creating a new growth engine for Hai Phong by promoting advanced manufacturing and creating quality jobs.”
LG Innotek began construction of a new semiconductor-substrate plant in Hai Phong last June. The initial investment is approximately KRW 1.4 trillion, and completion is targeted for May 2027. The new plant is expected to focus on producing high-value semiconductor substrates, including flip-chip chip-scale packages (FC-CSPs), flip-chip ball grid arrays (FC-BGAs) and radio-frequency system-in-package products (RF-SiPs).
With customer orders increasing amid the recent boom in the global semiconductor market, domestic production lines are nearing full capacity. The plan is to proactively expand production capacity through Vietnam.
LG Innotek established the Hai Phong production subsidiary in September 2016 to diversify its global supply chain and stabilize camera-module supplies. It began mass production of camera modules for new mobile models in 2017 and has steadily expanded its production capacity since then.
From just 800 employees at its founding, the production subsidiary has grown rapidly into a large organization with a total floor area of 242,600 square meters and 6,500 employees. It recorded approximately KRW 5.9 trillion in revenue last year, making it LG Innotek’s largest overseas production subsidiary. Its cumulative investment to date stands at approximately KRW 2.5 trillion, while cumulative revenue has reached about KRW 34 trillion.
Through this investment, LG Innotek plans to develop Hai Phong into a key global hub encompassing optical solutions and semiconductor substrates. It will enhance the local R&D capabilities of its optical-solutions business while using the new plant as a springboard to maximize the competitiveness of its substrate business. LG Innotek has set a company-wide goal of growing its package-solutions business to KRW 1 trillion in operating profit by 2031, making the role of the Hai Phong subsidiary likely to become even more significant.
Moon Hyuk-soo, president of LG Innotek, expressed his gratitude, saying, “The Vietnam production subsidiary was able to grow into LG Innotek’s core production base thanks to the trust and support of the Vietnamese government, Hai Phong City, our customers and all our employees.” He continued, “We will further strengthen the competitiveness of future growth businesses, including optical solutions and semiconductor substrates, with the Vietnam subsidiary at the center. We will accelerate our transformation into a solutions company driven by a High Performance Portfolio.”
LG Innotek is also drawing attention for its successful localization strategy. Local employees account for 99% of the entire workforce at the Hai Phong subsidiary, while Vietnamese nationals hold 87% of key positions, including office-based leadership roles and on-site supervisory posts. With a thorough localization system in place, the subsidiary is considered a leading example among Korean companies operating in Vietnam.
LG Innotek is also investing in developing future talent for advanced manufacturing. It has formed industry-academia partnerships with major local universities, including Hanoi University of Science and Technology (HUST) and Vietnam National University, and is actively operating recruitment-linked programs such as industry-sponsored degree programs and internships.
[email protected] Kim Jun-seok Reporter