CHANDLER, Ariz. (AP) -- Amkor Technology Inc., a specialist in packaging and testing computer chips, said Friday that it will build a $350 million semiconductor testing and packaging plant in South Korea.
The new plant will be built in the Incheon Free Economic Zone, near Seoul.
CEO Ken Joyce called the area a "worldwide center of excellence" for the semiconductor industry. Locating the new factory and research center there will help draw top engineering employees, he said.
The company said it signed a nonbinding agreement for a construction site covering about 46 acres. Amkor expects to spend about $350 million over the next three to four years buying land and developing the new plant.
The company plans to spend about $30 million during the fourth quarter of 2012, and about $70 million during 2013. The company said that the spending is expected to be accrued this year, and would be added to its previous guidance for spending $550 million on capital improvements in 2012.
Amkor's shares fell 7 cents, or nearly 2 percent, to close at $4.33.