JCET Plans to Invest 7.8 Billion Yuan to Build Advanced Packaging Facility in Shanghai Lingang
Alina Collins
JCET announced a ¥7.8 billion (~$1.15 billion) investment to build an advanced packaging plant in Shanghai's Lingang zone — China's latest move to break through via packaging as U.S. export controls block access to leading-edge foundry capacity, with direct implications for domestic AI chip mass production.
What exactly is being built?
JCET will build an advanced packaging and testing facility in Shanghai's Lingang free-trade zone, with a total investment of ¥7.8 billion (~$1.15 billion).
Advanced packaging — the final step that assembles bare chip dies into finished, usable chips — is the closing link of the entire chip manufacturing chain.
This means → JCET is not betting on "making chips" per se, but on turning chips into usable products — precisely the bottleneck holding back domestic AI chip volume today.
Where does the money come from, and what is the timeline?
The company plans to set up a holding subsidiary with ¥4 billion in registered capital to build and operate the new plant.
Construction is split into two phases; Phase 1 covers buildings and equipment, targeted for completion in H2 2028.
In plain terms = from now to real output, there is at least a three-year window; just over half the capital goes in upfront, the rest rolls in as construction progresses.
Why has packaging become the breakout path?
U.S. export controls have restricted Chinese companies' access to advanced foundry capacity from TSMC and others — the manufacturing door is blocked.
This reflects a strategic pivot: since cutting-edge lithography and fabrication remain out of reach for now, China is strengthening the packaging link first, using packaging technology to offset the process-node gap.
JCET's expansion is a direct move to lock in high-end packaging capacity under this logic.
The stock is up 147% — what comes next?
Backed by strong earnings, JCET's A-share price has risen 147% year-to-date.
This means → the market has already priced in much of the "China packaging champion" thesis; the next test is whether the new plant delivers on schedule and converts capacity into real orders.
Put simply = the stock has run ahead of actual capacity — Phase 1 completion in H2 2028 is the first hard checkpoint.
Content is for reference only, not financial advice.