LG Innotek Expands Vietnam Hub as Its Largest Global Manufacturing Facility

LG Innotek’s production subsidiary in Hai Phong, Vietnam, recently celebrated its 10th anniversary, marking its development into the company’s largest global manufacturing hub and a key contributor to Vietnam’s industrial sector.

Decade of Investment and Revenue Growth in Vietnam

Since starting mass production in 2017, LG Innotek’s Vietnam facility has seen cumulative investment reach approximately US$1.9 billion, generating cumulative revenues of about US$25 billion. The subsidiary’s revenue for 2025 is expected to be around US$4.1 billion. The site now employs roughly 6,500 people and occupies a floor area of 242,600 square metres.

The decision to establish the optical solutions plant in Hai Phong was influenced by Vietnam’s skilled workforce, competitive economic zones, and proximity to LG Group affiliates. The company introduced northern Vietnam’s first advanced cleanroom for ultra-precision manufacturing, expediting customer approvals and production ramp-up for camera modules.

Local Workforce Development and Future Expansion

Local employees constitute 99% of the workforce, with 87% of leadership roles held by local staff. LG Innotek has partnered with several Vietnamese universities to develop talent through internships, training, and recruitment programmes focused on high-tech manufacturing skills.

Building on expertise in optical solutions, LG Innotek is expanding the Vietnam subsidiary into semiconductor substrate production, investing about US$1 billion in a new factory set to open in May 2027. This facility will produce high-density substrates such as FC-CSP, FC-BGA, and RF-SiP. The move responds to near-full capacity operations in Korea and increasing demand in the semiconductor market, aiming for an operating profit target of US$740 million by 2031 in this segment.

LG Innotek CEO Moon Hyuksoo highlighted the role of the Vietnam facility as central to strengthening the company’s High Performance Portfolio and advancing its transition to a global solutions provider. Hai Phong city officials acknowledged LG Innotek’s contribution to the region’s industrialisation and job creation.

Going forward, LG Innotek plans to continue expanding production capacity at the Vietnam hub to meet growing local and international customer demand and to reinforce its global competitiveness in electronic components.