Honam Semiconductor Project Takes Its First Step... Amkor Breaks Ground on Gwangju Plant

The government’s Honam semiconductor project has entered the full-scale implementation stage. Amkor Technology, a global semiconductor packaging company, has increased its investment in its Gwangju plant from 1 trillion won to 3 trillion won and brought forward the investment schedule to meet growing demand for artificial intelligence (AI) semiconductors.
According to the Ministry of Trade, Industry and Energy on the 19th, a groundbreaking ceremony for the Amkor Gwangju plant expansion was held that day at Amkor Technology Korea’s Gwangju site. Amkor’s investment plan, included in the Southwestern Region Advanced Industry Development Vision announced by the government last June, has moved into the implementation stage. Amkor plans to invest a total of 3 trillion won at its Gwangju site and hire about 2,000 people by 2031. Compared with the original plan, the investment has increased by 2 trillion won and planned employment by about 1,000 people.
The new plant will produce advanced packaging products for AI and high-performance computing (HPC). The goal is to complete two buildings in the second half of next year and another two in the first half of 2028, and begin mass production. Advanced packaging is a technology that improves performance and power efficiency by stacking or connecting different semiconductor chips. As semiconductor circuit miniaturization approaches its physical limits, it is drawing attention as a key technology that determines the performance and competitiveness of AI semiconductors.
The investment is also significant because a global semiconductor company chose South Korea amid competition to attract investment. Amkor Technology, headquartered in the United States, operates more than 20 sites in eight countries around the world. Amkor Korea employs about 8,400 people at three sites—in Songdo and Bupyeong in Incheon, and in Gwangju—and its annual sales exceed 5 trillion won.
Lee Min-woo, head of the Industrial Growth Office at the Ministry of Trade, Industry and Energy, said, “This is the first sign that semiconductor investment in the southwestern region is moving from plans to the ground, and a decision by a global company that has faith in the future of South Korea and Gwangju.” He added, “With an advanced packaging plant that will determine semiconductor competitiveness in the AI era coming to Gwangju, we will do our part to help the semiconductor ecosystem take root in the southwestern region.”
The government will also establish 2 trillion won in mutually beneficial trade finance to help the boom enjoyed by major semiconductor companies spread to materials, parts and equipment companies.
The government plans to expand support for the semiconductor sector to at least 5 trillion won through a program jointly funded by SK hynix and commercial banks and guaranteed by the Korea Trade Insurance Corporation. Under the mutually beneficial trade finance program, SK hynix and four banks—KB Kookmin, Shinhan, Woori and Hana—will contribute a total of 100 billion won, while the Korea Trade Insurance Corporation will guarantee 20 times the contribution to create 2 trillion won in financing. It is the largest such arrangement to date involving a single company. Eligible recipients are SK hynix-recommended suppliers. After undergoing the Trade Insurance Corporation’s guarantee screening, they can receive benefits from participating banks, including preferential interest rates reduced by up to 2.5 percentage points and support for guarantee fees.
Meanwhile, Samsung Electronics is also working to foster mutually beneficial cooperation by expanding financial and technical support for its semiconductor suppliers. Samsung Electronics’ Device Solutions (DS) Division established a 1.4 trillion won mutual growth fund in 2010, then added 400 billion won in 2018, broadening support to include third-tier suppliers. In 2024, it set up a 1 trillion won ESG fund, offering interest-free loans for up to three years to support suppliers’ investments in facilities and technology and improvements to environmental safety.
[email protected] Park Ji-young, Park Ji-yeon Reporter