Increased Capital Expenditure by King Yuan by 37 Percent
King Yuan Electronics Boosts Capital Expenditure for Capacity Expansion
King Yuan Electronics Co, a leading semiconductor assembly and testing (OSAT) provider, has increased its annual capital expenditure by 37% to NT$37 billion (US$1.24 billion). This move comes in response to growing demand for AI chips and customized application-specific ICs for AI applications.
The company's board of directors approved a plan to issue 80 million new shares via a rights issue to fund the purchases of new manufacturing equipment. This decision was made in May, following an approval to raise capital expenditure from NT$26.97 billion.
In the first half of this year, King Yuan Electronics did not disclose its capital expenditure figures. However, the company reported a 25.34% year-on-year revenue expansion to NT$16.68 billion, with earnings per share increasing to NT$5.29, up from NT$2.68 a year earlier.
Final test services were the biggest revenue contributor for King Yuan Electronics in the first quarter, accounting for 45.7% of the total revenue. Wafer probing services came next, with a 37.2% share. Unfortunately, no latest revenue breakdown was provided for the first half of this year.
King Yuan Electronics has also approved a new capital injection plan of S$100 million (US$77.8 million) for its Singaporean subsidiary, KYEC Singapore Pte Ltd. However, there is no publicly available information about King Yuan Electronics' capacity expansion plans or about a new semiconductor fabrication facility in Singapore.
The company spent NT$14.86 billion on new facilities and equipment last year. Its gross margin rose mildly to 34.56% in the first half of this year. The net profit increased by 98%, reaching NT$6.47 billion.
King Yuan Electronics' customers include Nvidia Corp and Broadcom Inc. The company has also acquired a new manufacturing facility for NT$327 million in Miaoli County's Toufen Township in May.
For authoritative updates on King Yuan Electronics' expansion plans, one should monitor official King Yuan Electronics announcements, semiconductor industry news platforms, or Singapore government investment news.
- King Yuan Electronics has increased its capital expenditure due to the rising demand for technology products like AI chips and application-specific ICs for AI applications.
- The technology industry appears to be a key focus for King Yuan Electronics, as evidenced by their investment in a new manufacturing facility for the production of semiconductors.
