KYEC and Nvidia agree on US AI-chip testing capacity
KYEC and Nvidia have agreed on a customer prepayment intended to help KYEC build AI-chip testing capacity in the United States. The agreement gives Nvidia early access to that capacity, according to DIGITIMES.

Key takeaways · 4
- 01
The agreement is a customer prepayment between KYEC and Nvidia International, Inc., according to KYEC’s regulatory announcement.
- 02
Nvidia’s reported benefit is early access to US AI-chip testing capacity.
- 03
The regulatory notice says the agreement lasts from signing until the prepayment has been fully offset.
- 04
AeternZ is considering a $1.3 billion plant; the figure is not the same as Taiwan’s government estimate of $2 billion to $4 billion per industrial park.
What the agreement provides
DIGITIMES reported that KYEC and Nvidia signed a prepayment agreement intended to support KYEC’s wholly owned US subsidiary, AeternZ, as it builds local testing capacity.[1] CNA reported that KYEC’s board had decided to sign a customer prepayment agreement with Nvidia.[2] DIGITIMES said the arrangement gives Nvidia early access to AI-chip testing capacity in the United States.[1] KYEC described the agreement as a way to deepen its long-term cooperation with Nvidia, expand US testing capacity and support medium- to long-term business growth.[2]
Site and project figures
Fort Worth, Texas, was emerging as the likely location for KYEC’s US operations, according to DIGITIMES.[1] The Fort Worth Business Journal reported that AeternZ Semiconductor Testing Corp., described as a Texas subsidiary of KYEC, was considering a $1.3 billion plant in south Fort Worth.[5] Taiwan News separately described the US expansion as a NT$45 billion project.[4] These reports describe a likely location and a project under consideration, rather than confirming that a plant is operating.[1][5]
Agreement timing and terms
KYEC’s regulatory announcement identifies Nvidia International, Inc. as the agreement’s counterparty and lists October 13, 2026, as the date of the underlying event.[3] DIGITIMES published its report on October 14, 2026.[1] The regulatory notice says the agreement runs from signing until the prepayment has been fully offset.[3] Taiwan News reported that Nvidia’s prepayment would reserve KYEC’s US testing capacity.[4] KYEC said the agreement would expand its US testing capacity and support medium- to long-term business growth.[2]
Broader US industrial-park plans
Taiwan’s government and the Taiwan Electrical and Electronic Manufacturers’ Association would work together to promote the effort, CNA reported.[6] The government described the planned investment model as industry-funded with government assistance and estimated investment of US$2 billion to US$4 billion for each industrial park.[6] Taiwan’s Ministry of Economic Affairs said it would explain at an appropriate time whether Taiwan had secured land for an industrial park in Texas.[6] Bloomberg reported that Taiwan planned to raise billions of dollars to develop US industrial parks as a base for Nvidia and other AI-hardware makers’ supply chains.[7]
KYEC said the agreement would expand its US testing capacity and support medium- to long-term business growth. AeternZ is considering a $1.3 billion plant in south Fort Worth, while Fort Worth was emerging as the likely location for KYEC’s US operations.
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Start freeHow this developed
16 October 2026
KYEC and Nvidia agree on US AI-chip testing capacity
Sources
- KYEC, Nvidia eye Texas site for US AI chip testing plantdigitimes.com
- 京元電與輝達簽預付款協議 母子公司供應測試產能 | 產經 | 中央社 CNAcna.com.tw
- 京元電子 公告本公司董事會決議通過與客戶簽訂客戶預付款協議 - MoneyDJ理財網moneydj.com
- Taiwan’s King Yuan Electronics secures Nvidia prepayment for NT$45 billion US expansion | Taiwan News | Oct. 14, 2026 12:20taiwannews.com.tw
- King Yuan considers $1.3B Fort Worth plant - Fort Worth Business Journalbizjournals.com
- 赴德州建AI供應鏈 經部:每座園區投資估最高40億美元 | 產經 | 中央社 CNAcna.com.tw
- Taiwan to Fund $4 Billion Texas Complex for AI, Nvidia Partnersnews.bloomberglaw.com