King Yuan Electronics Company (KYEC) is scheduled to break ground for a new factory in Miaoli, northern Taiwan, in December, with construction scheduled to complete at the end of 2013, according to company chairman CK Lee.

KYEC expects to spend about NT$3 billion (US$103.5 million) in capex for 2013, said Lee, adding that capacity at its existing factories has been tight.

In addition, demand for 12-inch wafers has gone up encouraging the firm to install additional probing machines and related equipment, Lee indicated.

KYEC provides chip probing and final test services. The firm previously revised upward its capex target for 2012 to NT$3.8 billion from the NT$3.5 billion originally set.

KYEC reportedly has secured an influx of orders for CMOS image sensors from OmniVision and Japan-based IDMs, and also entered the supply chain for Apple's iPhone 5, according to market watchers.

In other news, KYEC revealed that its in-house testers will likely generate 15% of company revenues in 2012. The proportion is expected to climb further in 2013 allowing KYEC to spend less on equipment and lower costs.