King Yuan Electronics (KYEC), one of the world's Top 10 outsourced semiconductor assembly and test (OSAT) contractors, on Friday said it would sell its stake in its Chinese subsidiary King Long Technology (Suzhou) and leave the mainland China market. The company cites geopolitical tensions between China and the U.S. as well as intensified competition. By selling off its Chinese assets, KYEC will be able to invest more in its Taiwanese operations and gain traction in lucrative AI and HPC markets.
The transaction represents a significant shift in King Yuan's investment strategy, which is heavily influenced by the so-called chip war between the U.S. and China. By selling off its shares in King Long Technology, KYEC is looking to reduce its exposure to risks arising from these tensions and focus its operational focus on a more stable and supportive environment in Taiwan.
