TAIPEI: Taiwan-based semiconductor testing and packaging company King Yuan Electronics (KYEC) plans to invest up to USD 1.4 billion to establish a chip-testing facility in the United States, the company announced on Friday.

The proposed investment is aimed at expanding operations and reinforcing KYEC’s role in the global semiconductor supply chain.

The company did not disclose the location of the planned facility, its expected construction timeline, or the customers it will serve.

The announcement comes as Taiwanese semiconductor and electronics manufacturers continue expanding their US presence amid growing demand for advanced chips and artificial intelligence (AI) infrastructure.

Several major firms have increased investments in US manufacturing in recent years, including Taiwan Semiconductor Manufacturing Company, which is building large-scale chip production facilities in Arizona, while Foxconn and Wistron are developing AI server manufacturing capacity in Texas.