Taiwan's King Yuan Electronics (KYEC) says its first chip testing plant in the United States remains on track, with the company stating that political uncertainty around the US midterm elections has not slowed its Nvidia-backed facility in Fort Worth, Texas.

General manager Gauss Chang said the Texas facility remains on schedule. His comments came despite concerns that a shift in congressional control after the US midterm elections could change the direction of AI policy in Washington.

A $1.3 Billion Bet on the Back End of the Chip Business

KYEC handles backend testing, which involves checking finished semiconductors before they ship to customers — the final step in the chipmaking process, coming after fabrication. The Fort Worth project carries a budget of more than $1.3 billion, and the company is targeting high-volume production as early as April 2027.

KYEC's 2026 capital expenditures have reached a record $1.45 billion. Of that total, $614 million has already been approved for investment in the United States, meaning roughly 42 percent of the record budget is earmarked for US expansion.

Nvidia Is the Anchor Tenant, and It Paid Up Front

Nvidia is the driving force behind the plant. The AI chip giant has committed a prepayment of $1.1 billion to lock in testing capacity at KYEC's US facility.

KYEC has acquired land and begun procuring equipment for the site. The land deal totaled $79.35 million for 1.18 million square feet, a parcel that includes approximately 489,500 square feet of existing buildings. The site covers 27 acres and is set to include a 507,000-square-foot facility, with construction scheduled to begin in late October 2026.

Fort Worth Offered Incentives to Secure the Jobs

The Fort Worth City Council approved tax incentives tied to job creation at the plant. Under the arrangement, KYEC is expected to create at least 630 full-time positions by the end of 2031, with those roles paying average salaries of more than $80,000.

What This Means for the AI Chip Supply Chain

According to CryptoBriefing's analysis, Nvidia's $1.1 billion prepayment shows that the biggest AI chip buyer is willing to pay directly to secure domestic capacity at every stage of production, not just fabrication. Backend testing has historically been concentrated in Asia, particularly Taiwan, and moving part of that capacity to Texas puts testing closer to US customers while reducing the number of times a finished chip has to cross an ocean before deployment.

The publication also flagged potential execution risks. Construction is not scheduled to start until late October 2026, and the April 2027 production target is framed as “as early as,” which leaves room for slippage. Hiring is another variable: filling at least 630 skilled positions by the end of 2031 depends on a labor market that every chip project in the United States is competing for. Against those variables, KYEC's stated schedule provides concrete checkpoints to track: the construction start in late October 2026, progress toward the April 2027 production window, and hiring against the 630-job commitment through the end of 2031.

Source: CryptoBriefing