A new plant of Amkor Technology will be built in South Korea, as the company, which is an expert in testing and packaging computer chips revealed that it will spend $350 million to build a new semiconductor packaging and testing plant in South Korea. The new plant will be located close to Seoul, the capital of South Korea, as the new plant has been designated to be constructed in the Incheon Free Economic Zone.
Moreover, Ken Joyce, the Chief Executive Officer of the company referred to the area as global center of excellence particularly for the semiconductor industry. Ken Joyce said that locating the new plant and a research center facility in Incheon Free Economic Zone will help in attracting attention of top engineers.
Amkor Technology also said that it has signed a nonbinding contract for a construction location that will cover almost 46 acres. The company is expecting to make an expenditure of $350 million on the new plant in the next three or four years. The big amount that will be spent by the company will include expenditures on buying land as well as development of the new facility.
On the other hand, after the company made the announcement, shares of the company dropped by 7 cents, or in terms of percentage value, 2 percent, closing at a value of $4.33 per share.
The company also revealed that it will spend nearly $30 million additionally in the 4th quarter of the year and another $70 million in the next year. Amkor Technology revealed that the expenditures are expected to be accrued in 2012. It further said that the expenditures will be added to its preceding guidance for spending an amount of $550 million on capital advances this year.