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China's AI chip race is pushing the semiconductor bottleneck into advanced packaging and testing, where HPC, HBM, Chiplets and domestic substitution are driving a new capacity cycle.

Semiconductors Tech 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 2-MIN READ 0 Listen Make SCMP preferred on Google Xinmei Shen Published: 8:30am, 25 Jun 2026 Chinese chip-packaging and testing giant Jiangsu Changjiang Electronics

JCET Group is accelerating its AI chip packaging expansion with a CNY7.8 billion (US$1.1 billion) investment in a new advanced packaging and testing plant in Shanghai Lingang, strengthening capacity for AI computing, high-performance chips, high-density memory and automotive electronics.

JCET has opened a new advanced manufacturing facility at its Chengdong production base in Jiangyin, strengthening the Chinese OSAT provider's push into advanced packaging for AI computing, power modules, and next-generation data centers.