{"slug": "ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout", "title": "AI boom, profit surge fuel China’s ambitious chip assembly buildout", "summary": "China's three leading chip packaging firms—Jiangsu Changjiang Electronics Technology (JCET), Tongfu Microelectronics, and Huatian Technology—have announced capacity expansion investments exceeding 15 billion yuan (US$2.2 billion) in the first half of the year, driven by surging AI demand and robust profit growth. JCET's net profit surged 79.4% year on year to 845 million yuan on record revenue of 19.5 billion yuan, while Tongfu Microelectronics forecast a first-half profit surge of up to 337% and received regulatory approval for a 4.2 billion yuan private share placement.", "body_md": "# AI boom, profit surge fuel China’s ambitious chip assembly buildout\n\nChinese chip packaging firms launch multibillion-dollar expansion drive after logging triple-figure profit growth on surging AI demand\n\n[Ann Cao](/author/ann-cao)in Shanghai\n\nChina’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.\n\nIn 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).\n\nPackaging 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.\n\nJCET, 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.\n\nIn June, the firm unveiled a 7.8 billion yuan plan for a sprawling new advanced packaging and testing facility for high-end AI chips in Shanghai’s Lingang area, with phase one scheduled for completion in the second half of 2028.\n\nMeanwhile, Tongfu Microelectronics – slated to release its latest earnings results on Friday – has forecast a first-half profit surge of up to 337 per cent year on year, driven partly by its strategic partnership with US semiconductor firm Advanced Micro Devices’ next-generation processors.\n\nThe Chinese company recently received regulatory approval for a 4.2 billion yuan private share placement, and plans to allocate 888 million yuan to add 849,600 wafers of annual memory chip capacity.", "url": "https://wpnews.pro/news/ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout", "canonical_source": "https://www.scmp.com/tech/tech-trends/article/3365337/ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout?utm_source=rss_feed", "published_at": "2026-08-26 10:30:08+00:00", "updated_at": "2026-08-26 10:42:56.033867+00:00", "lang": "en", "topics": ["ai-chips", "ai-infrastructure", "artificial-intelligence"], "entities": ["Jiangsu Changjiang Electronics Technology (JCET)", "Tongfu Microelectronics", "Huatian Technology", "Advanced Micro Devices", "Ann Cao"], "alternates": {"html": "https://wpnews.pro/news/ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout", "markdown": "https://wpnews.pro/news/ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout.md", "text": "https://wpnews.pro/news/ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout.txt", "jsonld": "https://wpnews.pro/news/ai-boom-profit-surge-fuel-chinas-ambitious-chip-assembly-buildout.jsonld"}}