China’s JCET to build new plant in Shanghai to expand advanced chip packaging - South China Morning Post

Chinese chip packaging and testing giant JCET plans to invest 7.8 billion yuan (US$1.15 billion) to build a new advanced packaging and testing facility in Shanghai's Lingang Special Area. This move co... Read original →

JCET’s $1.15B advanced packaging plant in Shanghai is a strategic pivot to circumvent U.S. restrictions on access to leading-edge foundries like TSMC in Taiwan, China. With Moore’s Law slowing, China is betting big on heterogeneous integration—Chiplet, 2.5D/3D stacking—as its primary scaling lever. This move will catalyze domestic adoption of homegrown equipment, materials, and EDA tools tailored for high-density interconnects. Yet, the steep learning curve in thermal management, yield control, and cleanroom standards may inflate operational costs and expose supply chain fragilities. Competitors like ASE and Amkor are likely to double down on Southeast Asia for cost arbitrage, while TSMC could prioritize CoWoS capacity for AI clients to lock in loyalty. Within 18 months, China’s packaging surge may shift global test-and-assembly dynamics—but without co-developed IP ecosystems, it risks overcapacity without sustainable demand.