Taiwanese chip-testing company King Yuan Electronics said Friday it plans to invest up to $1.4 billion to establish a U.S. facility.
Headquartered in Hsinchu, Taiwan, King Yuan Electronics serves as a major supplier to AI chip company Nvidia, the world’s most valuable company, thanks in part to its monopoly in artificial intelligence chip production.
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KYEC is the world’s largest professional testing factory for semiconductor products.
The company said the billion-dollar investment is intended to strengthen KYEC’s operations and position in the global supply chain, though it has yet to specify a planned location or construction period, Reuters reported.
KYEC follows the example of other Taiwanese-based technology companies that have developed major manufacturing centers in the U.S., including Taiwan Semiconductor Manufacturing Company, which produces advanced microchips for companies such as Apple and Nvidia.
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The U.S. and Taiwan announced a trade and investment agreement in January to strengthen domestic semiconductor supply chains. Worth $500 billion, the agreement stated that Taiwan would pledge $250 billion in direct investments to build new production facilities for chips, energy, and AI on U.S. soil.
