[News] SJ Semiconductor Reportedly Wins IPO Nod as China Bets on Advanced Packaging

China’s drive for semiconductor self-reliance is advancing, with fresh momentum in advanced packaging. According to South China Morning Post, SJ Semiconductor, a key player in China’s advanced chip packaging sector, has secured approval to list on Shanghai’s STAR Market. The report notes that the company aims to raise 4.8 billion yuan (about US$700 million) through the IPO, with roughly 4 billion yuan earmarked for a 3D chip packaging project, citing its prospectus.

Investor China notes that passing the listing review moves SJ Semiconductor into the registration and issuance stage, with a debut on Shanghai’s STAR Market likely in the second quarter of 2026.

If completed, the offering would make it the first A-share listed company primarily focused on wafer-level advanced packaging, as noted by 21jingji.

Founded in 2014 in Jiangyin, eastern Jiangsu province, through a strategic alliance between SMIC and JCET, SJ Semiconductor was initially backed by China’s leading foundry and packaging champion, South China Morning Post notes.

SJ Semiconductor’s Strategic Importance in Beijing’s Semiconductor Self-Reliance Drive

As South China Morning Post highlights, the planned IPO comes as Beijing accelerates its push for chip self-sufficiency, seeking to navigate Western export restrictions by prioritizing “More than Moore” strategies that use advanced packaging to integrate multiple domestic chips into high-performance systems.

Against this backdrop, SJ Semiconductor has emerged as a pivotal player. According to STAR Market Daily, in the field of wafer-level packaging, the company has achieved the development and commercialization of 12-inch large-diameter wafer-level chip packaging (wafer-level chip-scale packaging, WLCSP). In the chiplet-based multi-chip integration segment, SJ Semiconductor’s 2.5D and 3D packaging businesses have both reached scaled mass production.

South China Morning Post adds that SJ Semiconductor is backed by the China Integrated Circuit Industry Investment Fund, or “Big Fund,” a flagship vehicle supporting Beijing’s semiconductor self-reliance strategy.

Advanced Packaging Pivot Meets Client Concentration Risk

A breakdown of the company’s revenue mix further illustrates its rapid shift toward advanced packaging. As South China Morning Post highlights, its chiplet-based multi-chip packaging segment expanded from just 5.3 percent of total revenue in 2022 to more than 56 percent by mid-2025, signaling a decisive pivot in its business focus.

However, risks remain. As Investor China notes, the company’s customer base is highly concentrated, with its top five clients accounting for more than 90 percent of total revenue and the largest customer alone contributing over 70 percent. Dependence on major clients remains a structural risk the company must address.

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(Photo credit: SJ Semiconductor)