JCET's US$1.1bn expansion shows where China's AI chip crunch is moving

JCET's $1.1B expansion signals a strategic pivot: as China’s AI chipmakers hit advanced-node roadblocks, they’re shifting the battleground to advanced packaging. Demand for HBM and chiplet-based HPC is turning OSAT into the new bottleneck. While this accelerates domestic adoption of local equipment in 2.5D/3D integration, it also exposes critical dependencies on foreign substrates and TSV tech. The U.S. may soon restrict packaging-related tool exports, raising compliance overhead. Competitors like ASE and Amkor will likely fast-track high-end capacity in Vietnam or Malaysia to capture global clients wary of supply chain risks. Over the next 18 months, advanced packaging will become a new geopolitical flashpoint—without breakthroughs in thermal compression bonding and silicon interposer yield, Chinese firms risk scaling capacity without true autonomy.