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Is Vietnam facing the opportunity to become Asia's new semiconductor manufacturing center when the world's leading technology corporations continuously pour billions of dollars into the chip sector?
LG Innotek, a member company of the Korean LG Group, is said to be strongly expanding its semiconductor substrate manufacturing activities in Vietnam through the construction and upgrading of new production facilities. This move comes in the context of the AI race, which is causing demand for high-performance chips to explode globally.
No longer just an electronics assembly place, Vietnam is gradually participating more deeply in the semiconductor value chain with the presence of big names such as LG Innotek, Samsung Electronics, Intel Products Vietnam, Amkor Technology and Hana Micron.
OVERVIEW OF LG INNOTEK PROJECT IN VIETNAM
Category Information
LG Innotek Enterprise
Korean country
FC-BGA Semiconductor Substrate Field
Central location in Hai Phong
Objective Serving AI, servers, data centers
Expansion time: Expected completion by 2027
Orientation Increasing the capacity of new generation semiconductor substrates
WHY IS THIS PROJECT IMPORTANT?
FC-BGA is one of the most valuable semiconductor substrates today.
This is an intermediate component that connects the chip to the motherboard and is used in
✅ ProcessorAI idea
✅ GPU for data center
✅ AI server
✅ High speed network card
✅ High-end electronic equipment
As ChatGPT, Gemini, Claude, DeepSeek and a host of AI systems thrive, demand for FC-BGA skyrockets globally. LG Innotek is considering this as a strategic area to reduce dependence on traditional smartphone cameras.
HOW HOT IS THE SEMICONDUCTOR RACE
Company Strengths
LG Innotek FC-BGA substrate
High-end Samsung Electro-Mechanics FC-BGA
Ibiden Japan AI server substrate
Unimicron Taiwan PCB and FC-BGA
Shinko Electric Japan Semiconductor Packaging
Amkor Technology Chip packaging
In this group, LG Innotek is accelerating production expansion to compete directly with Samsung Electro-Mechanics, Ibiden and Unimicron in the very high-margin AI substrate market.
HUGE INVESTMENT SCALE
LG Innotek previously committed to invest an additional 1 billion USD in Vietnam, bringing the total investment capital in Hai Phong to more than 2 billion USD.
1 billion USD is equivalent to approx
26,000,000,000,000 VND
This number is larger than the annual investment budget of many localities in Vietnam.
IMPACT ON VIETNAM
LG Innotek's expansion of semiconductor production may bring
✔ Thousands of high-tech jobs
✔ Increase the localization rate of the electronics industry
✔ Attract supporting businesses
✔ Improve the level of Vietnamese engineers
✔ Increase high-tech exports
✔ Contribute to bringing Vietnam deeper participation in the global AI supply chain
According to many experts, this is an important step when Vietnam not only processes productscomplete technology and begin to participate in higher value-added stages of the semiconductor industry.
THE MOST NOTEWORTHY THING
For many years, Vietnam has been considered a factory for manufacturing phones and consumer electronics.
Nowadays, the trend has changed.
International corporations are turning to invest in more important links such as
• Semiconductor substrate
• Chip packaging
• AI Research Center
• Data center
• Semiconductor material technology
If this wave continues to accelerate in the next 5 to 10 years, Vietnam can completely become one of the largest semiconductor centers in Southeast Asia.
The question is causing strong debate
Do you think Vietnam can become "the world's semiconductor factory" the same way China once dominated the electronics industry?
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