[News] China’s OSATs Step Up: Tongfu Microelectronics to Raise RMB 4.4B; JCET Backs Chip Fund

China’s packaging and testing industry is stepping up, with a surge in domestic investment fueling growth. According to ijiwei, from late 2025 to early 2026, leading A‑share OSAT companies have been particularly active, signaling a shift toward higher-end and more specialized capital spending.

Tongfu Microelectronics to Raise RMB 4.4B for Advanced Packaging Expansion

As the report notes, on January 9, Tongfu Microelectronics announced plans to raise RMB 4.4 billion via private placement to expand its packaging and testing capacity across memory chips, automotive applications, wafer-level packaging, and computing and communications. The company aims to build a multi-application packaging and testing platform to solidify its standing as the world’s fourth-largest and China’s second-largest player, while deepening ties with strategic customers like AMD and BYD.

However, as noted by Jiemian News, the four planned projects primarily involve expanding capacity based on existing process technologies, with little focus on new technology development. While the company says high utilization rates justify the need for more scalable and flexible supply, the report points out that each project may need a three-year construction period—posing potential risks from rapid technology iteration before production ramps.

JCET Expands Automotive Packaging and Investment Portfolio

On December 31, 2025, JCET announced that its automotive-grade packaging and testing facility, JSAC, had passed production line qualification as scheduled. The report adds that automotive electronics revenue surged 31.3% year-on-year in the first three quarters of 2025, making it a key growth driver for the company.

That same day, JCET also unveiled plans to invest in a semiconductor-focused private equity fund via its wholly owned subsidiary, Shanghai Yunjiaolong Enterprise. According to the report, the Jiaorong Xinzhi (Shanghai) Equity Investment Fund will total RMB 13.46 billion, with Yunjiaolong contributing RMB 4.038 billion for a 30% stake. The fund will focus on projects across chip manufacturing, testing, and related areas of the semiconductor supply chain.

China’s OSAT Firms Accelerate Overseas Buildout

In January, Forehope Electronics announced plans to build a new IC packaging and testing facility in Malaysia, focusing on system-in-package (SiP) products for applications such as AIoT and power modules. The project involves a total investment cap of RMB 2.1 billion and a 60-month construction timeline, the report notes.

UIGreen also revealed plans to expand its mobile optical lens module and semiconductor packaging and testing operations. According to the report, the company will invest up to RMB 760.5 million, focusing on its existing MEMS optical precision component and semiconductor final test (FT) probe.

Early Movers Reap Profits from Advanced Packaging Investments

The report from ijiwei highlights that early investment in advanced packaging has begun to pay off. In the first half of 2025, Forehope Electronics saw net profit surge 118.6% year-on-year, while JCET posted 52.4% growth and China Wafer Level CSP achieved a 30.5% increase. As the report further notes, A-share OSAT companies have been directing capital spending heavily toward advanced packaging technologies such as 2.5D/3D packaging, chiplet-based heterogeneous integration, and SiP. In 2023, 41% of top-tier OSAT firms’ capex went to these areas. The report also highlights that booming automotive demand is giving the industry a significant boost, particularly in vehicle-grade packaging capacity.

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(Photo credit: Tongfu Microelectronics)