Jiangsu Changjiang Electronics Technology (JCET), a leading Chinese chip-packaging company, announced a 7.8 billion yuan (US$1.15 billion) investment to build a new advanced packaging and testing facility in Shanghai, aiming to boost domestic chip production capabilities in response to rising demand and geopolitical restrictions.
- JCET commits $1.15B to new Shanghai advanced packaging plant
- Facility to be completed in two phases, first by second half of 2028
- Advanced packaging critical due to US export controls on chip manufacturing
What happened
China’s JCET announced plans to invest 7.8 billion yuan to construct a state-of-the-art packaging and testing plant in the Lin-gang Special Area of Shanghai. The project involves setting up a controlled subsidiary with 4 billion yuan in registered capital and will unfold in two stages, with the initial phase focusing on factory construction and equipment installation targeted by late 2028.
JCET, headquartered in Jiangsu province, is a prominent player in chip packaging and testing. This new facility is designed to greatly increase its advanced packaging capacity, responding to surging domestic demand driven largely by artificial intelligence growth and other cutting-edge technology applications.
Why it matters
Advanced packaging represents the final, critical step in semiconductor production where individual components are assembled into finished chips. This technology is essential for China's chipmaking self-sufficiency, especially as US export controls have restricted access to leading-edge manufacturing, including from Taiwan Semiconductor Manufacturing Company (TSMC).
JCET’s expansion highlights the broader strategic push within China’s semiconductor industry to build home-grown capabilities in advanced packaging to maintain competitiveness and keep pace with technological innovation. JCET’s stock price surged 147% in 2026, reflecting investor confidence in its leading role amid the evolving semiconductor landscape.
What to watch next
Industry observers will be monitoring the construction progress and eventual operational ramp-up of JCET’s Shanghai facility, with the first phase scheduled by the latter half of 2028. How successfully JCET integrates cutting-edge packaging technology, such as aiming to reduce surface roughness to below 0.2 nanometers, will be key to advancing chip quality.
Additionally, market participants should watch how JCET’s financial performance evolves following this investment and whether the company can sustain its growth momentum despite recent mixed quarterly results. Broader geopolitical developments related to US-China technology restrictions will also influence the pace and scale of such advanced semiconductor infrastructure projects.