AI boom, profit surge fuel China’s ambitious chip assembly buildout
Chinese chip packaging firms launch multibillion-dollar expansion drive after logging triple-figure profit growth on surging AI demand
China’s leading semiconductor packaging and testing companies have launched a multibillion-dollar capacity expansion drive, as they ride a surge in artificial intelligence demand, stellar first-half profit growth, and Beijing’s urgent push for tech self-sufficiency.
In the first half of the year, China’s three leading outsourced chip packaging companies – Jiangsu Changjiang Electronics Technology (JCET), Tongfu Microelectronics and Huatian Technology – announced capacity expansion investments exceeding a combined 15 billion yuan (US$2.2 billion).
Packaging and testing are the final steps in chip manufacturing. The fresh capital is aimed at scaling the firms’ high-end advanced packaging for AI accelerators, after the companies reported robust earnings growth in the first six months of 2026.
JCET, China’s largest packaging and testing firm, saw its net profit surge 79.4 per cent year on year to 845 million yuan, while revenue hit a record 19.5 billion yuan on strong computing electronics sales, according to its earnings report last week.