The insatiable demand for artificial intelligence infrastructure is fundamentally reshaping the semiconductor supply chain, pushing the boundaries of chip packaging technology. JCET Group, China’s leading outsourced semiconductor assembly and test (OSAT) provider, has emerged as a primary beneficiary of this trend, reporting record-breaking financial results driven by a massive surge in advanced packaging requirements.
According to the company’s recently released 2025 annual report, detailed by PR Newswire, JCET achieved a record full-year revenue of 38.87 billion yuan (approximately $5.37 billion), representing an 8.1% year-on-year increase. This marks the company’s third consecutive year of revenue growth, a significant achievement in a highly cyclical industry.
Advanced Packaging: The New Bottleneck
The standout metric in JCET’s report is the performance of its advanced packaging division. Revenue associated with advanced packaging reached a new high of 27 billion yuan, accounting for nearly 70% of the company’s total revenue. This growth is directly tied to the escalating requirements of AI servers, data centers, and high-performance computing (HPC) applications.
As Moore’s Law slows and the cost of shrinking transistors on a single monolithic die becomes prohibitive, the industry has pivoted to advanced packaging techniques. Technologies such as 2.5D/3D packaging, System-in-Package (SiP), and chiplet integration allow manufacturers to combine multiple smaller chips into a single, highly efficient package. This approach is critical for the massive GPUs and AI accelerators driving the current generative AI boom.
JCET’s strategic focus on these high-growth segments paid off significantly in 2025. The company reported that revenue from its computing electronics segment—which includes AI and HPC applications—surged by an impressive 42.6% year over year.
Investing in Next-Generation Technologies
To maintain its competitive edge and meet the complex demands of AI hardware, JCET is aggressively investing in research and development. Total R&D expenses for 2025 reached 2.09 billion yuan, a 21.4% increase from the previous year.
The company is driving systematic breakthroughs in critical areas, including high-density multi-dimensional heterogeneous integration, advanced bonding and interconnect technologies, and the development of glass substrates. Furthermore, JCET is advancing the introduction and mass production of new products in cutting-edge areas such as co-packaged optics (CPO), which integrates optical communication directly onto the chip package to overcome data transmission bottlenecks in AI data centers.
According to Digitimes, JCET’s push into advanced packaging is sharpening its position not just domestically, but globally. The company is accelerating capacity ramp-ups at its high-end facilities, such as JCET Microelectronics in Jiangyin, to support the surging demand for intelligent applications.
Navigating Cost Pressures and Future Growth
While the revenue growth is robust, the transition to advanced packaging is capital-intensive. JCET noted that its increased investment in high-end technologies and capacity build-out, combined with fluctuations in raw material prices, led to temporary cost pressures during the year. However, as higher value-added businesses scaled and new high-end capacity came online, the company’s profitability improved sequentially throughout the year.
Looking ahead to 2026, JCET CEO Li Zheng emphasized the company’s focus on capitalizing on growth opportunities in high-performance computing, storage, and embodied intelligence. The goal is to speed the translation of technological breakthroughs into mass-production capability, further raising utilization and operating efficiency in its high-end capacity. (Related: China Sets Its Sights on 80% Chip Self-Sufficiency by 2030)
JCET’s record results underscore a critical reality of the AI era: the performance of advanced AI models is increasingly dependent not just on the chips themselves, but on the sophisticated packaging technologies that connect them. As China continues to build out its domestic semiconductor ecosystem, the capabilities of OSAT providers like JCET will be central to its success.