News
KYEC approves record US$1.3 billion capex for 2025 and secures five-year syndicated loan
Friday, December 26, 2025 at 09:17 AM
KYEC has approved a record capital expenditure of NT$39.4 billion (US$1.3 billion) for next year to address high demand from its customers, which include major players like Nvidia. To support this investment, the company secured a NT$35 billion five-year syndicated loan led by Mega International Commercial Bank.
Context
KYEC, the primary chip testing partner for Nvidia, has authorized a record capital expenditure budget of US$1.3 billion for 2025. To support this massive expansion, the company secured a US$1.1 billion five-year syndicated loan led by Mega International Commercial Bank. This aggressive financial commitment reflects the urgent need to scale capacity as Nvidia ramps up production of its high-performance Blackwell and Hopper AI GPUs, which require significantly longer and more complex testing cycles than previous generations.
The investment highlights a critical shift in the semiconductor supply chain where back-end testing has become a potential bottleneck for AI chip delivery. By focusing exclusively on high-end testing services following the recent sale of its China-based subsidiary, KYEC is positioning itself as a high-margin beneficiary of the AI infrastructure boom. For investors, this record-high capex provides strong forward-looking visibility into the sustained demand for advanced AI hardware heading into 2025.
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