Backend house King Yuan Electronics (KYEC) reportedly will team up with Qualcomm to set up an engineering test center to be installed with 20-30 sets of equipment for testing 5G radio-frequency (RF) chips, under-display fingerprint sensor chips, and mixed-signal chips. This is expected to add significant growth momentum to KYEC, according to industry sources.

The sources said that KYEC will rent its existing clean-room site to Qualcomm to house the planned engineering test center and will offer related manpower and R&D resources, while Qualcomm will provide most of high-end testing facilities.

Qualcomm has outpaced its rivals in the development of 5G chips either for sub-6GHz or mmWave applications, and is expected to place more 5G chips testing orders with KYEC starting in 2020, the sources indicated.

KYEC's growth momentum for the first half of 2019 mainly comes from two major clients including China's Hisilicon, which, showing great testing demand for 5G base station chips, has asked KYEC to advance shipments. The Chinese chipmaker now focuses its 5G chip deployment on sub-6GHz spectrum chips, and will migrate to the high-frequency mmWave segment in 2020.

Meanwhile, Xilinx has also ventured its FPGA chips into the 5G infrastructure supply chain in China, becoming another major revenue growth contributor to KYEC.

With robust shipments to both Hisilicon and Xilinx, KYEC is expected to post a sequential revenue increase of 12-14% in the second quarter and 10% in the third quarter, with the annual revenues for 2019 likely to hit a record high.

By: DocMemory
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