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Shares of the leading Chinese chip packaging and testing firm soared to the daily trading limit after announcing plans to invest CNY7.8 billion (USD1.2 billion) in a new semiconductor packaging and testing facility in Shanghai. The investment aims to expand advanced packaging capacity to meet increasing customer demand.
The company’s stock [SHA: 600584] closed up 10 percent today at a record high of CNY104.17 (USD15.30). In the first quarter, its net profit increased by 43 percent year-over-year, boosted by strong demand from the global artificial intelligence computing industry. Since early April, the stock price has nearly tripled.
The Jiangsu-based company intends to establish the new plant in the Lin-gang Special Area within the China Shanghai Pilot Free Trade Zone, through a newly formed project entity with a registered capital of CNY4 billion. The growth in demand for advanced packaging solutions is driven by the global surge in AI computing.
Construction will be executed in two phases. The first phase involves building production facilities, along with the procurement and installation of equipment, expected to be completed by the latter half of 2028. The second phase will focus on increasing manufacturing capacity.
Further details, such as product offerings or projected annual output, were not disclosed. The company mentioned that the schedule for the second phase will be flexible, adjusted according to technological advancements, market trends, and progress made during the first phase.
As the largest semiconductor packaging and testing provider on the mainland and the third-largest worldwide, the company offers comprehensive chip manufacturing solutions to global clients. Last year, it held approximately 12 percent of the global market share and over 35 percent within China. Its automotive-grade chip packaging and testing facility in Shanghai’s Lin-gang Special Area began operations this March.
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