JCET to Build an Automotive Chip Advanced Packaging Flagship Factory in China

November 1, 2023, Shanghai, China - JCET Group (600584. SH), a leading global provider of IC back-end manufacturing and technical services, is proud to announce that its holding company, JCET Automotive Electronics (Shanghai) Co., Ltd. is set to receive a capital increase of RMB 4.4 billion, resulting in a registered capital of RMB 4.8 billion. The investment is aimed at accelerating the construction of advanced packaging facility for automotive chip products in the Lingang Special Area of Shanghai. This initiative underscores JCET’s support for both domestic and international clients, as well as industry partners, in creating a comprehensive chip product supply chain tailored for electronic and intelligent new energy vehicles.

According to Gartner, a market research institution, the global automotive semiconductor market is projected to swell to $116.6 billion by 2030, with a CAGR of 11.7% from 2020 to 2030. Automotive electronics has taken the lead as JCET’s fastest-growing business segment since the establishment of its Automotive Electronics Business Center in 2021. Within the first three quarters of this year alone, the company's automotive electronics revenue has increased by 88% year-on-year. Over the past three years, JCET has experienced exponential growth in its revenue from automotive electronics applications, alongside a rapid expansion of its automotive electronics customer base. In the next several years, the automotive industry is expected to usher in its next era of rapid growth in the intelligence of new energy vehicles. Innovation stemming from the advanced packaging of automotive semiconductors is poised to become a strong driving force for the semiconductor market’s overall evolution.

Located in Lingang, Shanghai, JCET’s automotive chip back-end manufacturing base spans over 130,000 square meters, with a factory area of approximately 200,000 square meters. The project commenced in August this year. Upon its completion in 2025, it is expected to become JCET’s first intelligent "lighthouse factory" in China, setting new industry benchmarks for the large-scale manufacturing of automotive chip products in the country. This will drive the entire industry chain towards greater levels of performance, reliability, and automation.

The project also marks the first large-scale modern factory in half a century established through a joint venture by JCET and local funds in Shanghai. JCET plans to fully leverage the dual advantages of the new energy vehicle industry and the automotive chip wafer manufacturing industry in Shanghai, enhancing the value contributed by IC back-end manufacturing in support of the new energy vehicle industry.

Mr. Li Zheng, CEO of JCET, states, “The global new energy vehicle industry is on the brink of a new wave of intelligence characterized by high computing power and high-density power supply. It is set to become one of the most vibrant fields of the semiconductor market over the next decade. JCET, with support from key clients in the automotive industry in Shanghai, is committed to building the large-scale flagship factory for professional automotive chip back-end manufacturing in China. We envision this as a lighthouse factory, one that will galvanize the integration of advantageous resources across the industrial chain and offer new contributions to the global automotive industry's intelligent and low-carbon sustainable development.”