China's largest chip packager is raising its fixed-asset budget by about 73% mid-year, a sign that AI-server and domestic-substitution orders are filling its advanced packaging capacity faster than planned.
JCET, China’s largest chip packaging and testing company, has raised its 2026 investment plan to RMB18.2 billion from RMB11.01 billion, after reporting a 59.99% rise in third-quarter net profit. Fixed-asset investment within the plan rises to RMB17.31 billion from RMB9.98 billion, China Fund News reported from the company’s October 22 announcement, which still needs approval at a shareholder meeting.
Third-quarter revenue reached RMB11.425 billion, up 13.53% from a year earlier, and net profit attributable to shareholders was RMB772.69 million, according to JCET’s third-quarter report. Excluding one-off items, quarterly profit more than doubled, up 117.43% to RMB752.55 million.
The mid-year increase in spending is the larger signal. A company that budgeted about RMB10 billion for fixed assets at the start of the year now plans to spend roughly 73% more, and it tied the change to customer demand and a faster build-out of advanced capacity. The results were released after the market closed on October 22.
Computing electronics now drives JCET’s growth
For the first nine months, JCET’s revenue rose 7.96% to RMB30.95 billion and net profit attributable to shareholders rose 69.58% to RMB1.617 billion. Gross margin improved by 2.3 percentage points year on year; the company did not give an absolute figure. China Fund News noted that nine-month profit already exceeds JCET’s net profit for the whole of 2025.
The mix explains the margin gain. JCET’s computing-electronics business, which serves AI data-center computing, memory, interconnect and power demand, grew 54% in the first nine months. That segment now accounts for 30.9% of revenue, while automotive electronics contributed 11.3% after growing 30%, the filing showed. China News Service Economic grouped JCET with memory-chip suppliers whose results surged on AI demand.
In its report, JCET attributed the growth to fast-rising demand for AI infrastructure and on-device applications, and to a clear trend toward domestic chip substitution. It said customer orders kept growing and capacity utilization stayed high. Jiemian reported basic earnings per share of RMB0.43 for the quarter, up 59.26%. For the nine months, net profit excluding one-off items nearly doubled, rising 99.17% to RMB1.56 billion.
The new money targets advanced packaging capacity
China Fund News quoted the announcement as saying the larger plan is meant to seize industry opportunities, match customer demand and speed up the build-out of advanced capacity and supporting capabilities. Sing Tao reported that the board approved the adjustment together with the quarterly report.
JCET’s press release points to where the capacity is going. Its Jiangyin subsidiary is expanding high-end advanced packaging lines, a new high-end packaging project in Shanghai is progressing, and the company’s Korea and Singapore plants are moving toward higher-value work, including data-center products. JCET also said glass-substrate and panel-level packaging projects are entering pilot-line construction. These are the company’s own descriptions, and the release does not break down the RMB7.33 billion increase in fixed-asset spending by project.
Advanced packaging has become a constraint on AI chips in China, because combining dies and memory into a single package is how domestic accelerators close part of the performance gap. EastFrontier has covered how rival packager Huatian is putting thermal design at the center of that work. JCET’s spending decision shows the largest player committing capital ahead of that demand.
A state-approved share sale adds to the funding
On the same day, JCET said the State Council’s state-assets regulator had approved its plan to sell up to 127,877,237 new A-shares to specific investors and raise up to RMB6.5 billion, Cailian Press reported. The placement still needs approval from shareholders, the Shanghai Stock Exchange and the China Securities Regulatory Commission. China Resources has been JCET’s actual controller since 2024.
Shares closed at RMB59.00 on October 22, up 3.09% before the results, giving JCET a market value of about RMB105.6 billion, according to China Fund News. The shareholder vote on the revised investment plan is the next formal step, and the fourth-quarter report will show whether the larger capacity build is already lifting revenue from computing customers.