Nvidia supplier King Yuan Electronics to invest up to $1.4 billion in US facility

Taiwanese chip-testing firm King Yuan Electronics (KYEC) announced on Friday its intention to invest up to $1.4 billion to establish a facility in the United States. The company, which supplies chipmaker Nvidia, stated that the investment is aimed at supporting its operational growth and reinforcing its position within the global supply chain.

KYEC did not specify which customers the planned U.S. facility would serve, nor did it disclose the location or provide a construction timeline. This expansion by a Taiwanese semiconductor and electronics firm follows similar moves by other companies in the sector, spurred by TSMC's significant investment in Arizona. Notably, Foxconn and Wistron are also developing AI server manufacturing capabilities in Texas, reportedly for Nvidia.

The broader trend of Taiwanese companies increasing their manufacturing presence in the U.S. highlights a strategic shift in global semiconductor supply chains.