Nvidia plans to begin high-volume production with King Yuan Electronics (KYEC) in April 2027, following a prepayment agreement signed on October 13, 2026 that reserves semiconductor testing capacity in the United States. KYEC’s board approved an investment of up to $1.4 billion on July 10, 2026 to expand its US testing capabilities, with AeternZ Semiconductor Testing Corporation serving as the operating subsidiary. This structure replaces an earlier arrangement that included a $300 million guarantee, which has since been canceled. Following record capital expenditure of NT$50 billion, or approximately $1.45 billion, in 2026, KYEC is seeking to address testing times that have increased by more than 70% for next-generation AI chips, requiring additional equipment and space. Because testing capacity is limited, AeternZ would give Nvidia a familiar US-based partner, while the facility’s launch schedule and the amount actually invested remain to be confirmed.
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