Global semiconductor packaging company Amkor Technology plans to invest 3 trillion won in expanding its Gwangju facility. This investment is 2 trillion won more than initially planned and will also increase new job opportunities. The expansion aims to enhance advanced packaging production facilities in response to rising demand for artificial intelligence (AI) semiconductors, marking a significant step in the implementation of the southwestern mega-project for the semiconductor industry.
The Ministry of Trade, Industry and Energy announced that a groundbreaking ceremony for the Amkor Gwangju plant expansion will take place on October 19 at the Amkor Technology Korea facility in Gwangju's Buk-gu. The event will be attended by Lee Min-woo, Director of the Ministry's Industrial Growth Division, Jin Hyung-bae, Mayor of Gwangju, Amkor's headquarters executives, and representatives from global clients.
Amkor plans to invest a total of 3 trillion won in its Gwangju facility from 2026 to 2031 and create approximately 2,000 new jobs. This marks an increase of about 1,000 jobs compared to the previous investment plan announced in June. The timeline for the investment has also been accelerated. The new facility will produce advanced packaging products for AI and high-performance computing (HPC). The goal is to complete two buildings by the second half of 2027 and two more by the first half of 2028, with mass production starting thereafter.
Advanced packaging technology enhances performance and energy efficiency by stacking different semiconductor chips vertically or connecting them within a single package. As semiconductor circuit miniaturization approaches physical limits, this area has become crucial for the competitiveness of AI semiconductors.
This investment expansion follows the southwestern advanced industry development vision announced on June 30. At that time, the government revealed a total investment plan of 896 trillion won involving SK Hynix, Samsung Electronics, and Amkor.
SK plans to invest about 470 trillion won in two semiconductor memory fabs and a 1-gigawatt AI data center, while Samsung Electronics will invest 425 trillion won in semiconductor fabs and a national AI computing center in the Honam region. Amkor's investment in Gwangju's advanced packaging facility has now been increased from an initial 1 trillion won.
Headquartered in the United States, Amkor Technology operates more than 20 facilities across eight countries and recorded approximately 9 trillion won in revenue last year. Its Korean subsidiary, Amkor Korea, employs over 8,400 people across three sites in Gwangju and Incheon, with annual revenue exceeding 5 trillion won.
The government expects Amkor's domestic investment to contribute to the establishment of a semiconductor industry ecosystem in the southwestern region as global semiconductor companies expand their overseas production bases.
Lee Min-woo stated, "Today's groundbreaking is the first signal that southwestern semiconductor investments are moving from planning to execution and a decision made by a global company that believes in the future of Korea and Gwangju. As an advanced packaging factory that will determine semiconductor competitiveness in the AI era is established in Gwangju, we will support the semiconductor ecosystem's growth in the southwestern region." He added, "We will closely cooperate with relevant ministries and local governments to carefully address the challenges faced by companies throughout the investment process and provide necessary support and solutions."
* This article has been translated by AI.
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