Nvidia targets high-volume KYEC production for April 2027

Nvidia plans to begin high-volume production with King Yuan Electronics, better known as KYEC, in April 2027. The plan follows a prepayment agreement the two companies signed on October 13, 2026. That deal reserves future semiconductor testing capacity in the US. What Nvidia is paying for KYEC’s board approved an investment of up to $1.4 billion on July 10, 2026. The money is earmarked for expanding the company’s testing capabilities in the US. The American operation will run through a KYEC subsidiary called AeternZ Semiconductor Testing Corporation. That setup replaced an earlier arrangement, which included a $300 million guarantee that has since been canceled. The US push sits on top of an already aggressive spending year. KYEC’s capital expenditure for 2026 is set at a record NT$50 billion, approximately $1.45 billion. Why testing suddenly matters so much KYEC is a leading Nvidia supplier. It focuses on final test and probing services for high-power AI components. Probing checks chips while they are still on the wafer. Final test checks finished, packaged parts before they ship. Next-generation AI chips require over 70% longer test times than older models. If each chip spends fa...