# Korea expands $1 trillion chip hub as US threatens tariffs

*The 3 trillion won packaging expansion in Gwangju anchors Seoul's domestic manufacturing strategy, even as Washington demands Korean chipmakers shift advanced fabrication to the United States.*

**Published:** October 20, 2026  
**By:** Dae-hyun Kim  
**Section:** Trade & Industrial Policy — South Korea  
**Format:** Policy Tracker  
**Confidence:** high  
**Source:** https://eastasiabrief.com/trade-policy/korea-expands-1-trillion-chip-hub-us-threatens-tariffs-825  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- Amkor broke ground on a 3 trillion won packaging expansion in Gwangju on Oct. 19
- Samsung and SK hynix plan 800 trillion won across four southwestern fabs
- First packaging lines enter mass production in late 2027

![Workers and heavy machinery operate around large building frameworks at a semiconductor facility construction site in South Korea. (AI-generated image)](https://eastasiabrief.com/media/2026-10-20-ea19d8c9a21d.webp)
*Workers and heavy machinery operate around large building frameworks at a semiconductor facility construction site in South Korea. (AI-generated image)*

Amkor Technology broke ground on a 3 trillion won ($2.2 billion) packaging plant expansion in Gwangju on Oct. 19, 2026, accelerating South Korea's semiconductor buildout as Washington escalated tariff threats against foreign fabs.

The 3 trillion won project represents the largest single direct investment by a foreign-invested company in South Korea. It forms the opening manufacturing base of Seoul's 1,350 trillion won ($1 trillion) national artificial intelligence and semiconductor infrastructure program.

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Cite as: East Asia Brief, "Korea expands $1 trillion chip hub as US threatens tariffs," October 20, 2026. https://eastasiabrief.com/trade-policy/korea-expands-1-trillion-chip-hub-us-threatens-tariffs-825