King Yuan Electronics, a Taiwanese company that tests and packages semiconductors for customers including Nvidia, plans to invest up to $1.4 billion in a new U.S. facility.
The company said the project would support future growth and strengthen its place in the global semiconductor supply chain. It did not identify the proposed location, construction schedule or customers that would use the facility.
Nvidia (NVDA, Financials), the chipmaker best known for graphics processors and artificial intelligence hardware, relies on a broad network of suppliers as demand for data-center systems continues to grow.
King Yuan joins other Taiwanese technology companies expanding in the U.S. Taiwan Semiconductor Manufacturing has committed billions of dollars to new plants in Arizona, while Foxconn and Wistron are building AI server capacity in Texas.
The investment reflects a wider effort to move more chip production, testing and server assembly closer to U.S. customers.
For Nvidia investors, added testing capacity could strengthen the supply chain behind future AI chip shipments. The next details to watch are the facility's location, construction timeline and expected production capacity.