AsemconnectVietnam - LG Innotek has selected the DEEP C Hai Phong 2 Industrial Zone as the location for its new USD 1 billion semiconductor substrate manufacturing complex, marking the company’s first semiconductor production facility outside the Republic of Korea.

Semiconductor project strengthens Hai Phong’s high-tech manufacturing base
The investment certificate for the project was officially presented to LG Innotek Vietnam Hai Phong Co., Ltd. at a ceremony held on July 30, 2026, to announce the Prime Minister’s decisions concerning Hai Phong’s economic zones and the establishment of the Hai Phong Free Trade Zone.
Covering approximately 32 hectares within the Hai Phong Free Trade Zone in the Dinh Vu-Cat Hai Economic Zone, which is currently being developed by Hai Phong city, the new facility is expected to become one of LG Innotek’s key global manufacturing bases for advanced semiconductor solutions.
The new project at DEEP C Hai Phong 2 is entirely separate from LG Innotek Vietnam Hai Phong’s existing camera module manufacturing complex. The investment marks a significant strategic expansion from camera module assembly into semiconductor substrates and packaging materials, which are critical components of the global semiconductor value chain.
The facility will manufacture three core product lines designed to support next-generation telecommunications and artificial intelligence applications. These include semiconductor substrates for radio-frequency communication modules used in smartphones and wearable devices; substrates connecting memory chips and processors in mobile devices; and high-value substrates for central processing units, graphics processing units and server systems.
Under the latest implementation schedule, construction is set to begin in the third quarter of 2026. Pilot production is expected to commence in the third quarter of 2027, while mass production is scheduled to begin in the third quarter of 2028. In addition to its manufacturing operations, the project will include factory, office and warehouse leasing facilities to support the broader semiconductor ecosystem.
Beyond the scale of the investment, the project’s most significant feature lies in the production of high-end semiconductor substrates, often described as the hidden backbone of artificial intelligence servers, data centres, smartphones, autonomous vehicles and other next-generation technologies that are reshaping industries worldwide.
LG Innotek’s decision to establish its USD 1 billion semiconductor project in Hai Phong is expected to further strengthen LG Group’s high-tech manufacturing ecosystem in Vietnam, while reinforcing the city’s position as an emerging hub in the global semiconductor value chain.
“This is a very encouraging development,” said Bruno Jaspaert, CEO of DEEP C Industrial Zones. “The fact that a global company such as LG Innotek has once again selected Hai Phong as the home of its latest investment demonstrates its strong confidence in the city’s long-term growth potential. We are equally proud that LG has selected DEEP C as the location for this landmark project.”
According to Jaspaert, the significance of the project extends well beyond its USD 1 billion investment value.
“The most important message is not the size of the investment itself, but LG’s decision to continue investing in Hai Phong. Companies expand only in locations where they have confidence in the long-term prospects,” he said.
Park Hong Keun, General Director of LG Innotek Vietnam Hai Phong, described Hai Phong as one of Vietnam’s most competitive and promising investment destinations.
“Highly skilled human resources, an open investment environment and close cooperation among the government, local authorities and businesses have created strong momentum for the city’s sustainable development,” he said. “As a trusted long-term partner of Hai Phong, LG Innotek will continue expanding its investment, creating high-quality employment opportunities, attracting talent and contributing to the city’s sustainable growth.”
For DEEP C, supporting the growth of both LG Innotek and Hai Phong is particularly meaningful. Jaspaert believes that DEEP C’s integrated infrastructure and services, together with its long-term commitment to sustainable industrial development, have also contributed to LG’s decision to expand its presence in the city.
Free Trade Zone expected to enhance Hai Phong’s investment appeal
Vietnam has yet to establish a fully operational free trade zone, making Hai Phong’s pioneering initiative a milestone with considerable potential. The new model is expected to strengthen the city’s competitiveness in attracting international investment by creating a more favourable business environment.
“In my view, the benefits of the Free Trade Zone extend far beyond attracting investors,” Jaspaert said. “An attractive policy framework that helps draw international experts, highly skilled professionals and qualified workers will significantly strengthen Hai Phong’s competitiveness compared with other locations in the region.”
“Competition for talent is becoming increasingly intense. Creating an environment in which highly qualified people choose to live, work and build their careers in Hai Phong is just as important as attracting investment. That is what I value most about the Free Trade Zone, because it is designed not only to support businesses, but also to create a better place for people to live and work.”
“If Hai Phong successfully implements this model, I believe the city will enter a new phase of accelerated growth,” Jaspaert said. “It will give international investors greater confidence to make investment decisions more quickly. When companies think of a free trade zone in Vietnam, Hai Phong should become their first choice. If implemented effectively, this model has the potential to create a very bright future for the city.”
Source: Congthuong.vn