King Yuan Electronics, a key chip testing partner for Nvidia and TSMC, is considering a production line in the US to meet rising demand for AI and High Performance Computing (HPC) chips.

Chairman Lee Chin-kung said that this aligns with market changes, following TSMC’s US$100 billion US expansion, which includes two advanced packaging facilities.

The company is also exploring options in Southeast Asia, a major semiconductor hub.

AI-related revenue is expected to surpass 20% of total revenue in 2025, a sharp rise from last year’s single-digit contribution.

President Gauss Chang noted strong growth prospects despite fluctuations in the automotive and consumer electronics sectors.

To meet demand, King Yuan has rented a facility in Toufen City, Miaoli County, and is investing in clean room construction and new equipment.

The company is also building a new fab in Tongluo Township, increasing 2025 capital expenditure to NT$23.3 billion (US$709.2 million), a 68% rise from the previous year.