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China\'s top 3 semiconductor packaging firms see profit surge in H1, launch 15 billion yuan expansion race

China’s three largest semiconductor packaging and testing (OSAT) companies have launched an expansion race as demand for AI semiconductors surges and profits grow at triple-digit rates. Jiangsu Changjiang Electronics Technology (JCET), Tongfu Microelectronics and Huatian Technology together announced more than 15 billion yuan ($2.2 billion) in first-half capacity expansion plans, focused on advanced packaging for AI accelerators. Other firms and Taiwan’s ASE also increased investment plans.

Industry

LB Semicon enters Qualcomm supply chain as non-DDI shift pays off

LB Semicon, an outsourced semiconductor assembly and test (OSAT) company, has entered Qualcomm’s supply chain after receiving approval for mass production, it said on Sunday. The company said it will begin mass production within August. The products cover Qualcomm semiconductors for AI data centres and automotive use, with services spanning bumping through testing and back-end processes. LB Semicon said the move reflects its shift beyond DDI to higher value processes.

Industry

Semiconductor boom, but South Korea\'s chip equipment exports to China fall

South Korea\'s semiconductor exports rose past $40 billion for the first time on a monthly basis, extending a 16-month streak of gains. But exports of semiconductor manufacturing equipment to China edged down in June even as memory chip shipments surged. The article points to China focusing on domestically made back-end processing equipment as the United States tightens controls on advanced lithography tools. Hybrid bonding and other back-end processes are highlighted as key areas of Chinese localisation.