Nvidia has scheduled the start of high-volume production with King Yuan Electronics (KYEC) for April 2027. This timeline is supported by a prepayment agreement signed on October 13, 2026, which secures semiconductor testing capacity within the United States.
The operations will be managed by AeternZ Semiconductor Testing Corporation, a subsidiary of KYEC. This new arrangement replaces a previous agreement that included a $300 million guarantee, which has since been canceled.
On July 10, 2026, the board of KYEC approved an investment of up to $1.4 billion to expand testing capabilities in the US. This initiative is part of a broader capital expenditure plan for 2026, which is set at a record TWD 50 billion, or approximately $1.45 billion.
KYEC provides probing and final testing services for Nvidia's high-power AI components. The expansion addresses a domestic infrastructure shortage in the US, as testing requirements for next-generation chips have increased by over 70% in duration.
