SAN FRANCISCO—Semiconductor packaging and test services provider Amkor Technology Inc. said Friday (May 18) it plans to build a state-of-the-art test and packaging facility and global research and development center in the Incheon Free Economic Zone, near Seoul, South Korea.
The factory and R&D center will focus on the design, development and production of semiconductor packaging and test services, Amkor (Chandler, Ariz.) said.
Amkor said it signed a non-binding memorandum of understanding to house the facility on a site that is approximately 186,000 square meters, or about 46 acres. The company said it expects to spend about $350 million over the next three to four years to acquire and develop the land and buildings. The company said it plans to spend about $30 million of that in the fourth quarter of 2012 and another $70 million in 2013.
Construction is expected to commence in 2014, with the facility is expected to become operational by late 2015 or 2016, Amkor said.
"Korea is a worldwide center of excellence for the semiconductor and electronics industries, and with our new site we will be able to attract top engineering talent and a highly skilled workforce," said Ken Joyce, Amkor's president and CEO, in a statement.
Joyce said Amkor's total investment in the South Korea project could reach $1 billion over the next 10 years.
In February, Amkor announced it took a $4 million charge in the fourth quarter of 2011 related to restructuring charges, including a reduction of its workforce in the Philippines.