China’s JCET Expands in Shanghai with New Chip Packaging Plant

Strategic Investment to Enhance China’s Chipmaking Capabilities

China’s leading chip-packaging and testing company, Jiangsu Changjiang Electronics Technology (JCET), has announced a significant investment of 7.8 billion yuan (US$1.15 billion) to establish a new facility. This move is part of an effort to meet the growing demand for domestically produced chips, especially as artificial intelligence (AI) continues to evolve rapidly.

A controlled subsidiary with a registered capital of 4 billion yuan will be established to construct an advanced packaging and testing factory in the Lin-gang Special Area of Shanghai. The project will be implemented in two phases, with the first phase, which includes construction and equipment investment, expected to be completed by the second half of 2028.

This strategic expansion aims to accelerate JCET’s growth in high-end advanced packaging capacity and enhance its overall competitiveness in the global market. Advanced packaging, which involves assembling individual dies into finished products, has become increasingly vital for China’s chipmaking capabilities. With restrictions on access to advanced manufacturing foundries, such as those operated by Taiwan Semiconductor Manufacturing Company, the importance of domestic solutions has grown significantly.

Economic Performance and Market Response

JCET’s stock, listed on the Shanghai Stock Exchange, has seen a remarkable increase of 147% since the beginning of the year, reflecting strong investor confidence in the company’s future prospects. In April, the company reported full-year 2025 revenue of 38.87 billion yuan, marking an 8.1% increase. Despite a 2.75% decline in net profit, this performance was described as “record-breaking.”

In the first quarter of this year, revenue slightly dipped by 1.76%, but net profit surged by 42.74% compared to the previous year. These figures highlight the company’s resilience and ability to adapt to market fluctuations.

Industry Insights and Future Outlook

At the Semicon China conference in March, JCET’s CEO, Zheng Li, emphasized the critical role of advanced packaging in the post-Moore’s Law era. As traditional methods of improving computing power through transistor shrinkage reach their limits, the focus has shifted towards enhancing chip quality. Zheng highlighted that new-generation packaging technology aims to reduce surface roughness to below 0.2 nanometre, a significant improvement over the current 2.5D packaging technology, which operates at 5nm.

This shift underscores the importance of innovation in packaging technology as a key driver for the future of semiconductor manufacturing. By investing in advanced packaging, JCET is positioning itself to meet the evolving needs of the AI industry and other high-tech sectors.

Broader Implications for the Semiconductor Industry

The semiconductor industry is undergoing a transformation, driven by the need for more efficient and powerful chips. As AI applications continue to expand, the demand for advanced packaging solutions is expected to grow. Companies like JCET are at the forefront of this change, leveraging their expertise to develop cutting-edge technologies that can support the next generation of electronic devices.

The investment in the new plant in Shanghai is not only a testament to JCET’s commitment to innovation but also a reflection of China’s broader strategy to strengthen its position in the global semiconductor market. By focusing on advanced packaging, China aims to reduce its reliance on foreign manufacturing and build a more self-sufficient supply chain.

Conclusion

As the semiconductor industry continues to evolve, the role of advanced packaging will become even more critical. JCET’s substantial investment in a new facility in Shanghai highlights the company’s strategic vision and its determination to lead in the development of next-generation chip technologies. With a focus on quality and innovation, JCET is well-positioned to meet the challenges of the post-Moore’s Law era and contribute to the advancement of the global semiconductor industry.