Jiangsu Changjiang Electronics Technology, China’s largest chip packaging and testing company, has announced a US$1.15 billion (approximately GBP 890 million) investment in a new advanced packaging facility in Shanghai’s Lingang Special Area, as Beijing accelerates its push for semiconductor self-sufficiency amid escalating US export controls.
The two-phase project will be carried out through a subsidiary with registered capital of approximately US$560 million (GBP 433 million), according to JCET. Phase 1, covering factory construction and equipment installation, is targeted for completion in the second half of 2028.
JCET CEO Zheng Li framed the investment within a broader shift in the semiconductor industry. “The focus is moving away from simply increasing transistor density toward improving overall chip quality and performance,” Zheng said at the Semicon China conference in March 2026. Advanced packaging, which integrates individual dies into finished products, is becoming a primary driver of semiconductor innovation in a post-Moore’s Law era, he argued.
The company’s next-generation packaging technologies aim to achieve surface roughness below 0.2 nanometers — a significant improvement over the roughly 5 nanometers associated with current 2.5D packaging technology. Smoother surfaces at the atomic level enable tighter integration of chiplets and improved power efficiency, critical for AI workloads that demand high-bandwidth memory and processor coordination.
The investment comes at a pivotal moment for China’s semiconductor ambitions. US export controls have sharply limited Chinese access to leading-edge chip fabrication from TSMC and other advanced foundries. Advanced packaging offers a partial workaround: by combining multiple mature-node chiplets into high-performance systems, Chinese firms can achieve competitive performance without access to the most advanced transistor nodes.
JCET’s shares listed in Shanghai have risen 147 percent since the start of the year, reflecting strong investor confidence in China’s domestic semiconductor supply chain. The company’s expansion aligns with Beijing’s broader strategy of building self-sufficient chip infrastructure, a goal that has gained urgency as Washington tightens export controls on semiconductor equipment and design tools.
The facility is expected to serve both domestic and international customers, though the geopolitical climate has made foreign chip companies increasingly cautious about partnership with Chinese packaging firms. For JCET, the Lingang plant represents both a capacity expansion and a technological leap — moving from conventional packaging into the ultra-precision processes required for next-generation AI accelerators and high-performance computing chips.
Sources: Chinese semiconductor firm expands with $1.15 billion chip packaging plant (Interesting Engineering, July 4, 2026); JCET public filings (Shanghai Stock Exchange)