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China’s JCET to build new plant in Shanghai to expand advanced chip packaging
US$1.15 billion investment underscores advanced packaging’s role in boosting China’s chipmaking capabilities amid rapid AI development
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Xinmei ShenPublished: 8:30am, 25 Jun 2026Chinese chip-packaging and testing giant Jiangsu Changjiang Electronics Technology (JCET) says it will invest 7.8 billion yuan (US$1.15 billion) to build a new plant, as demand for home-grown chips continues to surge amid the rapid development of artificial intelligence.
A controlled subsidiary with a registered capital of 4 billion yuan would be set up to construct an advanced packaging and testing factory in the Lin-gang Special Area in Shanghai, the company said on Wednesday.
The project will be rolled out in two phases, with the first – covering factory construction and equipment investment – scheduled for completion in the second half of 2028.
JCET, based in China’s eastern Jiangsu province, said the move was aimed at accelerating the expansion of its “high-end” advanced-packaging capacity and enhancing the company’s overall competitiveness.
Advanced packaging – the final step in chip production that involves assembling individual dies into finished products – has become critical to China’s chipmaking capabilities, especially as Washington’s export controls restrict access to advanced manufacturing foundries such as Taiwan Semiconductor Manufacturing Company.
JCET’s Shanghai-listed shares have surged 147 per cent since the beginning of the year on the back of strong growth.
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