What is the expected percentage of the total handset market that will be built with 5G capability in 2022 
?
Giel Rutten -- President and Chief Executive Officer
Yeah, that's a good question. I mean, we see the transition from 4G to 5G continue for the next two to three years. This year's expected 500 million handsets being built with 5G capability, which is about 40% of the total handset market. We expect that to grow in 2022 to something like 65% to 70%, and then the year after it will gradually move to a higher percentage. The overall smartphone market, if you take the overall volume, it grows mid-single digits percentage this year and we expect, let's say, a moderate growth going forward. We saw some of the critical markets like, for example, the India market holding back a bit in the second quarter, but we expect that to recover going forward. So, that's what we see over the next two years, continued growth in 5G. We have a strong footprint there. And that is a strong growth driver for Amkor going forward.
Arthur Winston -- Pilot Advisors -- Analyst
Good. In terms of capacity utilization, are we bumping up against utilization any place like Korea or someplace where we're fully utilized?
Giel Rutten -- President and Chief Executive Officer
Well, we installed significant incremental capacity actually in the second quarter to prepare for the third quarter ramp. Currently, our lines are highly utilized. We see still some utilization improvement possibilities in our Japan factory, for example. But, generally, in the third and fourth quarter, we are close to fully utilized, and we also expect this year to be close to fully yield utilized in the third and fourth quarter.
Arthur Winston -- Pilot Advisors -- Analyst
Well, OK. Have you picked a location in the United States? And if so, what do you think the whole project will cost when you finished up with it?
Giel Rutten -- President and Chief Executive Officer
Well, we're watching closely the activities in the U.S., with establishing semiconductor manufacturing supply chain. Of course, we are encouraged to see the passage [Phonetic] share of the chips for American founding [Phonetic]. Amkor is uniquely positioned to be an OSAT in the U.S. We're a U.S.-based company. We are headquartered in Tempe, Arizona. Of course, with respect to the U.S. cost structure as compared to the Asian cost structure, we are really -- currently working with federal, state and local jurisdictions to really understand the incentives that could become available to build a competitive supply chain in the U.S. I mean currently we are actively exploring and evaluating potential sites for U.S. facility and to bring that up in line with other investments in the supply chain to be able to support our customers in the U.S.
Arthur Winston -- Pilot Advisors -- Analyst
But nothing has been signed so far? If you have [Speech Overlap] Yeah.
Giel Rutten -- President and Chief Executive Officer
No, but we're zooming in to a few possible locations, and we expect to finalize this in the next phase.
Arthur Winston -- Pilot Advisors -- Analyst
Okay. My last question is on a couple of older conference calls you alluded to going into sort of where high technology testing and emphasizing testing going forward, but you really not talking about very much. So, is that -- is testing growth in the course for the future?
Giel Rutten -- President and Chief Executive Officer
Test -- let me step back here to create a perspective. I think, turnkey services for Amkor is important, and turnkey basically includes bumping, probing, assembly and final test. So, testing is an integral part of our offering. And we're investing significantly to expand our test capability and capacity, very specifically in the 5G domain where 5G testing is a new technology area where we started to invest in about two years ago, and we now have significant volume capability in place in our Korea facility.
Arthur Winston -- Pilot Advisors -- Analyst
Okay. Well, thanks, and thanks for the results as well.
Giel Rutten -- President and Chief Executive Officer
Okay. I appreciate that.
Operator
Thank you. And at this time, I'm showing no further questions. I would li
?
Giel Rutten -- President and Chief Executive Officer
Yeah, that's a good question. I mean, we see the transition from 4G to 5G continue for the next two to three years. This year's expected 500 million handsets being built with 5G capability, which is about 40% of the total handset market. We expect that to grow in 2022 to something like 65% to 70%, and then the year after it will gradually move to a higher percentage. The overall smartphone market, if you take the overall volume, it grows mid-single digits percentage this year and we expect, let's say, a moderate growth going forward. We saw some of the critical markets like, for example, the India market holding back a bit in the second quarter, but we expect that to recover going forward. So, that's what we see over the next two years, continued growth in 5G. We have a strong footprint there. And that is a strong growth driver for Amkor going forward.
Arthur Winston -- Pilot Advisors -- Analyst
Good. In terms of capacity utilization, are we bumping up against utilization any place like Korea or someplace where we're fully utilized?
Giel Rutten -- President and Chief Executive Officer
Well, we installed significant incremental capacity actually in the second quarter to prepare for the third quarter ramp. Currently, our lines are highly utilized. We see still some utilization improvement possibilities in our Japan factory, for example. But, generally, in the third and fourth quarter, we are close to fully utilized, and we also expect this year to be close to fully yield utilized in the third and fourth quarter.
Arthur Winston -- Pilot Advisors -- Analyst
Well, OK. Have you picked a location in the United States? And if so, what do you think the whole project will cost when you finished up with it?
Giel Rutten -- President and Chief Executive Officer
 Well, we're watching closely the activities in the U.S., with establishing semiconductor manufacturing supply chain. Of course, we are encouraged to see the passage [Phonetic] share of the chips for American founding [Phonetic]. Amkor is uniquely positioned to be an OSAT in the U.S. We're a U.S.-based company. We are headquartered in Tempe, Arizona. Of course, with respect to the U.S. cost structure as compared to the Asian cost structure, we are really -- currently working with federal, state and local jurisdictions to really understand the incentives that could become available to build a competitive supply chain in the U.S. I mean currently we are actively exploring and evaluating potential sites for U.S. facility and to bring that up in line with other investments in the supply chain to be able to support our customers in the U.S.
Arthur Winston -- Pilot Advisors -- Analyst
But nothing has been signed so far? If you have [Speech Overlap] Yeah.
Giel Rutten -- President and Chief Executive Officer
No, but we're zooming in to a few possible locations, and we expect to finalize this in the next phase.
Arthur Winston -- Pilot Advisors -- Analyst
Okay. My last question is on a couple of older conference calls you alluded to going into sort of where high technology testing and emphasizing testing going forward, but you really not talking about very much. So, is that -- is testing growth in the course for the future?
Giel Rutten -- President and Chief Executive Officer
Test -- let me step back here to create a perspective. I think, turnkey services for Amkor is important, and turnkey basically includes bumping, probing, assembly and final test. So, testing is an integral part of our offering. And we're investing significantly to expand our test capability and capacity, very specifically in the 5G domain where 5G testing is a new technology area where we started to invest in about two years ago, and we now have significant volume capability in place in our Korea facility.
Arthur Winston -- Pilot Advisors -- Analyst
Okay. Well, thanks, and thanks for the results as well.
Giel Rutten -- President and Chief Executive Officer
Okay. I appreciate that.
Operator
Thank you. And at this time, I'm showing no further questions. I would li