# China’s JCET to build new plant in Shanghai to expand advanced chip packaging > Source: > Published: 2026-06-25 00:30:15+00:00 # China’s JCET to build new plant in Shanghai to expand advanced chip packaging US$1.15 billion investment underscores advanced packaging’s role in boosting China’s chipmaking capabilities amid rapid AI development [demand for home-grown chips](https://www.scmp.com/tech/big-tech/article/3344610/why-sj-semiconductor-matters-chinas-race-build-home-grown-ai-chips?module=inline&pgtype=article)continues to surge amid the rapid development of artificial intelligence. A controlled subsidiary with a registered capital of 4 billion yuan would be set up to construct an advanced packaging and testing factory in the Lin-gang Special Area in Shanghai, the company said on Wednesday. The project will be rolled out in two phases, with the first – covering factory construction and equipment investment – scheduled for completion in the second half of 2028. [advanced-packaging capacity](https://www.scmp.com/tech/tech-war/article/3358078/asml-euv-china-rumour-ridiculed-it-reveals-tougher-reality-ground?module=inline&pgtype=article)and enhancing the company’s overall competitiveness. Advanced packaging – the final step in chip production that involves assembling individual dies into finished products – has become critical to China’s chipmaking capabilities, especially as Washington’s export controls restrict access to advanced manufacturing foundries such as Taiwan Semiconductor Manufacturing Company. JCET’s Shanghai-listed shares have surged 147 per cent since the beginning of the year on the back of strong growth.