China Advanced Packaging Enters New Wave of Investment as 400 Billion Yuan in Projects Target Chiplet 3D Integration and AI Chip Substrates

China’s advanced packaging sector saw a surge of nearly 10 disclosed projects from May to July 2026, totaling about 400 billion yuan.

JCET, Yongshuo Electronics, and a Union Semiconductor subsidiary led the wave, with projects spanning chiplet, 2.5D/3D, RDL, and fan-out packaging.

New investments also target automotive chips, compound semiconductors, and AI memory packaging, signaling broader end-market demand.

The spending shift suggests advanced packaging is becoming a strategic capability for AI, HPC, memory, and automotive supply chains in China.