China’s semiconductor industry is entering a new phase of advanced packaging expansion, with nearly 10 publicly announced projects worth approximately RMB 40 billion unveiled between May and July 2026.

The latest investments focus on 2.5D and 3D packaging, Chiplet integration, Fan-Out packaging, high-density redistribution layers (RDL), advanced flip-chip technology and automotive semiconductor packaging, reflecting the industry’s transition toward higher-value heterogeneous integration driven by demand for artificial intelligence (AI) and high-performance computing (HPC).

Unlike previous expansion cycles that emphasized manufacturing volume, the current investment wave targets more advanced packaging technologies capable of supporting next-generation semiconductor devices.

Major Projects Target High-End Packaging Technologies

Several large-scale projects are leading the latest investment cycle.

JCET announced a RMB 7.8 billion advanced packaging facility in Shanghai Lingang on June 24. The project will focus on:

• High-density RDL
• Ultra-fine-pitch bumping
• Large-scale heterogeneous integration
• Chiplet multi-chip packaging for AI servers and HPC processors

Meanwhile, Yongshuo Electronics unveiled plans to invest RMB 10.3 billion over eight years in a high-end packaging base in Yuyao, Zhejiang Province.

The facility will support:

• Wafer bumping
• 2.5D integration
• Flip-chip packaging
• Wire bonding

Target applications include AI edge processors, automotive control chips and analog integrated circuits.

Another major investment comes from Shanghai Zhengzhuo Xincheng Microelectronics, a subsidiary of Union Semiconductor, which launched a RMB 7.5 billion HITS advanced packaging project in Shanghai.

The project will develop technologies including ultra-fine-pitch interconnects, high-density RDL and large-area heterogeneous integration.

Automotive Semiconductor Packaging Expands

Automotive electronics continue to drive new packaging investments.

HKC announced a RMB 4 billion advanced packaging facility in Shaoxing dedicated to automotive-grade semiconductors and power devices, with planned production capacity reaching 20 million units per month.

Huaxinbang Technology also committed RMB 2 billion to establish an advanced packaging base in Nanchong, Sichuan Province, focusing on compound semiconductors and industrial control applications.

Meanwhile, Mingtai Microelectronics completed the topping-out ceremony for the second phase of its Chengdu manufacturing project.

The RMB 5 billion expansion will add QFN, flip-chip and system-in-package (SiP) production lines, increasing annual production capacity by an additional 10 billion units by 2027.

AI Memory Packaging Gains Momentum

Investment is also increasing in advanced memory packaging.

Huatian Technology is expanding its Nanjing facility through a RMB 3 billion investment supporting advanced memory packaging, including High Bandwidth Memory (HBM) and SSD controller testing.

At the same time, Biwin Storage announced a RMB 1 billion project in the Greater Bay Area focused on fan-out memory packaging and storage-computing integration technologies for AI applications.

Industry Shifts Toward Higher-Value Integration

The latest investment cycle highlights three significant trends within China’s advanced packaging industry.

First, individual project sizes have increased substantially, with investments moving from several billion yuan to projects exceeding RMB 10 billion.

Second, technology priorities have shifted toward Chiplet architectures, 2.5D and 3D heterogeneous integration, and advanced packaging platforms capable of supporting AI and HPC processors.

Third, companies are increasingly locating new facilities near wafer fabrication plants, automotive manufacturing centers and established semiconductor clusters to strengthen collaboration throughout the semiconductor supply chain.

As AI computing, high-performance processors and automotive electronics continue to increase demand for advanced semiconductor packaging, these investments indicate that China’s packaging industry is accelerating its transition from traditional assembly and testing toward more sophisticated heterogeneous integration technologies that support next-generation chip manufacturing.

Last Updated on 30/07/2026 by Jota Machinery