[News] China’s Leading Chip Packaging Firm JCET Unveils Major Board Restructuring

---

---

According to a report in South China Morning Post, China’s leading chip-packaging company, Changjiang Electronics Technology Co. (JCET), recently announced a significant restructuring of its board of directors following the acquisition of a 22.5% stake by the state-owned China Resources Group, as the state conglomerate becomes its largest shareholder.

JCET announced that its chairman, Gao Yonggang, who previously served as chairman of SMIC and joined JCET’s board in 2017, has resigned from his role. Alongside Gao, two other board members, Peng Jin and Zhang Chunsheng, also stepped down, as did company supervisor Wang Xian. The report mentions that JCET plans to hold a board meeting on November 29 to appoint a new supervisor.

The report points out that these changes come as China Resources strengthens its influence in the local semiconductor market. The conglomerate, which also owns the semiconductor subsidiary China Resources Microelectronics, acquired its stake in JCET through a Hong Kong-based subsidiary.

This purchase involved acquiring shares from two entities: the China Integrated Circuit Industry Investment Fund, known as the “Big Fund,” established to bolster China’s chip industry, and Siltech Semiconductor (Shanghai) Company, a subsidiary of SMIC. Following the transaction, the Big Fund retains a 3.5% stake in JCET, while Siltech no longer holds any shares, as the report notes.

The report highlights that frequent transactions among China’s state-owned enterprises, local government investment entities, and state-backed funds are part of a broader national strategy to achieve semiconductor self-sufficiency by leveraging resources across different entities.

JCET is a leading company in China for advanced packaging technology, including 2.5D and 3D configurations, which involve stacking multiple chips to create a more powerful product, as indicated by the report.

Advanced packaging, the crucial last stage of chip production, requires assembling individual dies into a complete product. The report notes that this technology has become especially important for China as it faces difficulties in advanced chip manufacturing due to ongoing trade restrictions from the U.S.

According to the company’s earnings report, JCET saw a 22.26% year-on-year increase in revenue for the first three quarters of 2024, reaching RMB 24.98 billion (approximately USD 3.46 billion). Net income also rose, increasing by 10.55% to 1.07 billion (approximately USD 151.625 million).

Read more

• [News] JCET’s New High-End Packaging Plant in China Reportedly to Start Production Soon
• [News] Chinese Packaging Giant JCET Group Invests CNY 4.5 Billion to Enter Storage Market

(Photo credit: JCET)