KYEC approves $1.4B US chip testing plant

King Yuan Electronics has approved an investment of up to $1.4 billion to build a semiconductor testing plant in the United States.

KYEC greenlights largest overseas project on July 10. The Taiwan-based semiconductor testing company approved the US plant investment of up to US$1.4 billion, equivalent to about NT$44.9 billion, on July 10. The move aligns with ongoing US efforts to expand domestic chip manufacturing capacity.

KYEC described the project as its largest overseas expansion to date. It specifically targets a growing gap in US backend packaging and testing capacity.

Investment addresses US semiconductor backend shortfall. The semiconductor testing company said the new facility will help close the expanding shortfall in US-based backend operations. This includes both packaging and testing stages that follow front-end wafer fabrication.

The approval comes as the US continues pushing policies to strengthen its domestic semiconductor ecosystem. KYEC's project forms part of that broader push for self-sufficiency in the full chip supply chain.

Project scope remains tied to approved funding ceiling. The $1.4 billion figure represents the upper limit of the approved investment. Further details on exact site location, construction timeline, or initial capacity targets were not disclosed in the approval announcement.

The decision underscores continued foreign investment flowing into US chip infrastructure. KYEC joins other semiconductor service providers expanding stateside to meet demand from both US policy incentives and customer requirements for localized backend services.