China reaches a new stage in the semiconductor race: Major plant to be built in Shanghai

Despite strict sanctions and technological restrictions imposed by the US, China continues to rapidly develop its semiconductor industry. JCET (Jiangsu Changjiang Electronics Technology), one of the world's largest providers of chip packaging and testing services, has announced the construction of a new high-tech facility in Shanghai. This project is considered another strategic step by Beijing toward achieving technological independence. This is reported by Ixbt.com reports .

The new plant will be located in the Lingang Special Economic Zone in Shanghai. The total cost of the project is approximately 8.2 billion yuan (about 1.15 billion dollars). According to ixbt.com, construction will be carried out in two phases. The construction of the first phase of production buildings and the installation of necessary equipment are scheduled to be completed in the second half of 2028.

Slowing Moore's Law and new solutions

Currently, traditional methods of increasing processor performance, namely the process of shrinking transistor sizes, are approaching their physical limits. For this reason, advanced packaging technology is becoming crucial in modern microelectronics. This method allows for a significant increase in device power by integrating multiple dies into a single system.

JCET's new facility will specialize in this very area. Advanced packaging technologies serve to house multiple specialized chips within a single package, increase data transfer speeds, and reduce energy consumption. Such solutions are especially critical for AI accelerators, large data centers, and high-performance computing systems.

A strategic step toward technological independence

US export restrictions are making it difficult for Chinese companies to access the most advanced chip manufacturing equipment. However, Beijing is investing heavily in areas where it can increase its competitiveness, including chip assembly and packaging processes. This area is becoming as important a factor in increasing hardware efficiency as the production of the chips themselves.

Company representatives stated that next-generation technologies will be developed at the new facility. These technologies will ensure denser integration of microcircuits and high-precision connection of components. Additionally, new surface treatment methods that reduce the roughness of contact pads will be introduced, which will increase the reliability and efficiency of the finished products.

China's initiative is expected to shift the balance of power in the global semiconductor market. Instead of stopping China's development, Western sanctions are accelerating innovation processes within the country and the creation of local supply chains. The new plant in Shanghai will serve not only to meet domestic needs but also to strengthen China's technological leadership in the global market.