Head Amkor Technology, Inc announced that it plans to build a state-of-the-art factory and global research and development center in the Incheon Free Economic Zone, which is located in the greater metropolitan area of Seoul, Korea. The new factory and R&D center will focus on the design, development and full scale production of innovative semiconductor packaging and test services for the world’s leading semiconductor and electronic manufacturing companies.

“We are making a strategic, long term investment in our core manufacturing and research infrastructure.  It is a commitment to the future,” said Ken Joyce, Amkor's president and chief executive officer.  “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.”

“This investment will strengthen our competitive position as an industry leader providing advanced interconnect technologies, and help ensure our future growth,” added Joyce.

We have signed a non-binding memorandum of understanding for a site for the new facilities with approximately 186,000 square meters, or about 46 acres.  We expect to spend approximately $350 million over the next three to four years to acquire and develop the land and buildings, with approximately $30 million planned for the fourth quarter of 2012 and approximately $70 million planned for 2013.  The $100 million of spending planned for 2012 and 2013 is expected to be accrued this year and would be incremental to our previous guidance of $550 million of capital additions for 2012.

Construction is expected to commence in 2014 and the facility is expected to become operational by late 2015 or 2016.  We expect to equip our new manufacturing and R&D facilities using our normal capital additions budget.

“Our total investment for this project may reach $1 billion over the next 10 years, although spending for a project like this will be spread over many years and can be controlled as needed as economic and market conditions and the cash needs for our business evolve,” noted Joyce.