King Yuan Electronics (KYEC) confirms that its upcoming semiconductor testing facility in Fort Worth, Texas, remains on schedule. Despite concerns regarding potential shifts in AI policy following US midterm elections, the project continues as planned. The company specializes in backend testing, which involves verifying finished chips before they reach customers.
The project budget exceeds $1.3 billion. Nvidia serves as a key partner, having provided a prepayment of $1.1 billion to secure testing capacity at the site. KYEC has already invested $614 million in the US project, part of a record $1.45 billion in total capital expenditures for 2026.
The company acquired a 27-acre site for $79.35 million, which includes existing structures. The new facility will span 507,000 square feet, with construction slated to begin in late October 2026. KYEC aims to reach high-volume production by April 2027.
The Fort Worth City Council has approved tax incentives contingent on job creation. KYEC plans to hire at least 630 full-time employees by the end of 2031, with average annual salaries exceeding $80,000. This expansion aims to localize backend testing, which has traditionally been concentrated in Asia.
