China: KYEC to exit china following semiconductor sanctions

King Yuan Electronics Co (KYEC), one of the world's largest testing and packaging services firms, has sold its entire 92.1 percent stake in its King Long Technology (KLT) subsidiary, a manufacturing hub in the Chinese city of Suzhou as the company sets out to leave China. KYEC cites issues arising from US sanctions on semiconductors as its reasons for leaving the country.

In its statement, KYEC said: “Due to the impact of geopolitics on the global semiconductor supply chain, such as [the] United States' restrictions on China's semiconductor industry technology, the ecological environment of semiconductor manufacturing in China has changed, along with intensified market competition.

“KYEC fully considers the environment in which KLT operates, weighs KYEC’s strategic planning for future operational development and growth, and aims for the long-term use of financial resources more effectively. The board of directors has made a decision to withdraw from China’s semiconductor manufacturing business.