Amkor Invests 3 Trillion Won in Gwangju... Southwestern Semiconductor Megaproject Takes Its 'First Step'

Expansion of Advanced Packaging Production Facilities for AI and HPC
Investment Up by 2 Trillion Won and Hiring by 1,000 From Original Plan

Yonhap News

Amkor Technology Korea (Amkor) will invest a total of 3 trillion won in its Gwangju plant by 2031 to expand advanced packaging production facilities for artificial intelligence (AI) and high-performance computing (HPC), as part of a southwestern region semiconductor megaproject. The investment is 2 trillion won higher than originally planned, and the timing has been brought forward. The move is expected to accelerate the government's plan to develop the southwestern region into a hub for advanced semiconductor production.

The Ministry of Trade, Industry and Energy said on October 19 that it will hold a groundbreaking ceremony for the expansion of Amkor's Gwangju plant. Attendees will include Lee Min-woo, head of the ministry's Industrial Growth Office; Min Hyung-bae, mayor of Jeonnam-Gwangju Special City; Amkor headquarters executives; and representatives of global clients.

The expansion puts into concrete form Amkor's investment plan for Gwangju, announced at the Public Briefing on the Southwestern Region's Advanced Industry Development Vision on June 30. To meet rising demand for advanced packaging, Amkor plans to invest a total of 3 trillion won from 2026 to 2031 and hire approximately 2,000 new employees.

Compared with the original plan, the investment has increased by 2 trillion won and the number of new hires by approximately 1,000. The new plant will produce advanced packaging products for AI and HPC applications, including those used in AI data centers and supercomputers. The first two buildings are scheduled for completion in the second half of 2027, followed by two additional buildings in the first half of 2028, with mass production set to begin thereafter.

Advanced packaging is a technology that boosts performance and power efficiency by stacking or connecting different semiconductor chips. As the miniaturization of semiconductor circuits approaches physical limits, the technology is becoming increasingly important as a key factor in the performance of AI semiconductors.

Amkor Technology, headquartered in the United States, specializes in advanced packaging and recorded revenue of approximately 9 trillion won last year. It operates more than 20 sites in eight countries worldwide. Its Korean subsidiary, Amkor Korea, employs approximately 8,400 people at three sites in Songdo, Bupyeong and Gwangju, and generates annual revenue of more than 5 trillion won.

The ministry said the investment is significant because Amkor chose Gwangju amid competition to attract investment between its overseas production hubs and domestic sites. It expects the investment to help move the government's plan to build a semiconductor ecosystem in the southwestern region from the planning stage to actual investment and construction.

"Today's groundbreaking is the first sign that semiconductor investment in the southwestern region is moving from plans to the ground, and reflects a global company's decision based on its confidence in the future of the Republic of Korea and Gwangju," said Lee Min-woo, head of the ministry's Industrial Growth Office. "With a state-of-the-art packaging plant that will shape semiconductor competitiveness in the AI era being built in Gwangju, we will do our utmost to help the semiconductor ecosystem take root in the southwestern region."

This content was produced with the assistance of AI translation services.