SINGAPORE – Taiwan’s King Yuan Electronics Co (KYEC) has opened its first overseas semiconductor testing facility in Singapore to meet demand from international customers driven by developments in artificial intelligence (AI).
The site at Ang Mo Kio, which was officially launched on May 22, includes an over 109,000 sq ft cleanroom.
It was the result of an almost $100 million investment and is expected to create more than 300 jobs, from engineering to managerial roles.
The firm, which counts chip giants including Nvidia among its customers, is headquartered in Taiwan and has regional offices in North America, Japan and Singapore.
KYEC Singapore Chairman Gauss Chang said advancements in AI, along with geopolitical uncertainties and shifting macroeconomic conditions, have spurred structural changes across the industry and created opportunities for expansion.
He said the Singapore facility will allow KYEC to collaborate more closely with customers looking to build a diversified footprint.
“We have become part of the supply chain and part of the process,” Mr Chang said.
(From left) KYEC Singapore Chairman Gauss Chang, Economic Development Board Managing Director Jermaine Loy and KYEC Singapore President Kenneth Seah at the opening ceremony of KYEC’s facility in Singapore on May 22.
PHOTO: LIANHE ZAOBAO
The firm reported a record quarterly revenue of NT$10.2 billion (S$413.8 million) in the first three months of 2026.
Founded in 1987, KYEC provides testing for integrated circuits and final products in the backend supply chain for semiconductors.
The process has become more critical as chip-makers push for advancements in the specifications and capabilities of their products.
Mr Jermaine Loy, managing director at the Economic Development Board (EDB), noted that KYEC plans to train Singapore employees in areas such as equipment engineering, and in the most advanced test processes.
He said the move will strengthen the local semiconductor ecosystem and its testing capabilities.
Mr Loy said: “This is especially important, given rapid technology advancements across AI applications and increasingly stringent testing requirements.
“We are confident that companies looking to outsource chip production would find Singapore an attractive location not only for product and chip design, but also for full turnkey solutions – from design, chip fabrication, packaging, to test.”
Outsourced semiconductor assembly and test providers are a key part of the semiconductor industry.
The industry contributes close to 6 per cent of Singapore’s gross domestic product and employs more than 35,000 people, according to EDB.
In recent years, Singapore has drawn investments from semiconductor heavyweights including US firm Micron and Taiwan’s UMC.
Deputy Prime Minister Gan Kim Yong has said that the Republic wants to secure and extend its leadership in advanced manufacturing sectors such as semiconductors, medical products, specialty chemicals and aerospace.
While sectors already contribute significantly to economic growth and provide good jobs, DPM Gan said more needs to be done as the Singapore economy matures.
This came as it was announced that some $800 million will be channelled to the Research, Innovation and Enterprise (RIE) plan to establish the RIE Flagship in Semiconductors.
The RIE plan, managed by the National Research Foundation, charts and supports the country’s five-year strategy to strengthen its research capabilities.
