Amkor Begins Construction of $2.25 Billion Semiconductor Packaging Expansion in Gwangju, South Korea, Targeting 2027 Production

South Korea's Ministry of Trade, Industry, and Energy announced on the 19th that a groundbreaking ceremony for Amkor Technology Korea's Gwangju plant expansion was held at the site.

Attendees and Project Advancement

Those attending included Lee Min-woo, Director General of the Industrial Growth Office at the Ministry, and Min Hyung-bae, Mayor of the Integrated Special City of Jeonnam-Gwangju, along with Amkor headquarters executives and representatives of global customers.

The event moved the semiconductor belt project in the Southwest Region, promoted by the South Korean government, past the announcement stage into actual construction.

Investment Grows to USD 2.25 Billion with 2,000 Jobs Planned

Amkor Technology Korea, the South Korean unit of U.S. semiconductor packaging specialist Amkor Technology, plans to invest USD 2.25 billion in the Gwangju Plant through 2031. The sum is USD 1.50 billion larger than the roughly USD 750.85 million originally unveiled at the June 30 "Southwest Region Advanced Industry Development Vision Public Report."

The hiring plan has likewise grown from about 1,000 workers to about 2,000. Amkor Korea disclosed these figures at the ceremony, stating the expanded plan covers the 2026 to 2031 period.

Four Buildings to Serve AI and HPC Demand

The project will build four advanced packaging plant buildings for AI and high-performance computing products. Two buildings are scheduled for completion in the second half of 2027 and the remaining two in the first half of 2028, with mass production following in stages.

The new facilities will handle advanced packaging products used in AI accelerators and HPC servers. Amkor said it moved up the investment timeline because demand is growing faster than expected.

Packaging Technology Takes Center Stage as Miniaturization Limits Near

Advanced packaging stacks precisely connect different semiconductor chips to boost performance and power efficiency. With miniaturization technology, which shrinks circuit line widths, approaching physical limits, the process has emerged as a factor determining competitiveness in AI semiconductors.

A Ministry of Trade, Industry, and Energy official said, "As circuit miniaturization nears its limits, advanced packaging is rising as a core technology that decides AI semiconductor competitiveness."

A Global OSAT's Choice of South Korea

Amkor Technology posted USD 6.76 billion in revenue last year and operates more than 20 sites in eight countries. Its South Korean unit employs about 8,400 people across three bases, Songdo, Bupyeong, and Gwangju, and generates more than USD 3.75 billion in revenue.

The decision carries weight because a global company chose South Korea as the site for advanced packaging expansion amid international competition to attract overseas production bases.

Officials Pledge Support for the Southwest Region

Director General Lee said in his congratulatory remarks, "Today's groundbreaking is the first signal that Southwest Region semiconductor investment is moving from plans to the field and a decision made by a global company in trust of the future of South Korea and Gwangju."

He continued, "With an advanced packaging plant that will determine semiconductor competitiveness in the AI era coming to Gwangju, we will help the semiconductor ecosystem take root in the Southwest Region."

He added that relevant ministries and local governments will cooperate to resolve difficulties companies face during the investment process.

Positioning Within the Global Packaging Race

The expansion is viewed as Amkor's move to secure production capacity preemptively in a global packaging market where demand for AI servers and accelerators is surging.

Advanced packaging has been led by Taiwan's TSMC and Taiwan- and China-based OSATs, and some observers say Amkor can use its South Korean base as a forward outpost to accelerate its race for AI chip customers.

With major semiconductor-producing countries such as Taiwan, Japan, and the United States aggressively courting back-end process investment, the USD 2.25 billion decision is expected to raise the weight of South Korea's base in the coming reorganization of the global packaging supply chain.