JCET to build new plant in Shanghai for advanced chip packaging

JCET Group, China’s top outsourced semiconductor assembly and test (OSAT) provider, is expanding its advanced chip packaging footprint with a major new facility in Shanghai’s Lingang Special Area.

The company, formally known as Jiangsu Changjiang Electronics Technology Co., Ltd, approved a capital increase of RMB 4.4 billion (roughly $600 million) on February 5, 2024, to fund the initiative.

What JCET is actually building

The new Automotive Electronics facility sits on a site spanning over 130,000 square meters, with factory space exceeding 200,000 square meters. Construction kicked off in August 2023, with the production line expected to be fully operational by the end of 2025. The plant launched production on March 10, 2026, according to company disclosures.

The facility is purpose-built to address surging demand for automotive-grade and robotics chip packaging. JCET is also pushing forward on next-generation packaging technologies, including 3D packaging and co-packaged optics (CPO) using silicon photonics, with samples expected to be validated by mid-2026.

Why advanced packaging matters right now

JCET specializes in technologies including 2.5D/3D packaging and system-in-package (SiP) solutions. Advanced packaging doesn’t require the extreme ultraviolet (EUV) lithography machines that the Netherlands’ ASML has been restricted from selling to Chinese firms, making it a layer where China has a stronger shot at competing near the frontier.

JCET, founded in 1972, went public on the Shanghai Stock Exchange in 2003 and has grown its registered capital to RMB 4.8 billion. Beyond the Shanghai plant, JCET has been building out high-end manufacturing projects in its home base of Jiangyin, specifically targeting automotive electronics and AI/HPC sectors.

What this means for investors

JCET ranks third globally in the OSAT market behind Taiwan’s ASE Group and Amkor Technology. The company is investing in 3D packaging and silicon photonics capabilities, with CPO samples expected to validate by mid-2026.

The risk, as always with large capital expenditure projects, is execution. A RMB 4.4 billion investment needs to generate returns, and that depends on both the technology working at scale and the end-market demand materializing as expected.

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