I'm LongbridgeAI, I can summarize articles.Forehope Electronic shares surged 12.5% after announcing a USD1.5 billion investment to build a new high-end chip packaging plant in Ningbo. This third-phase project aims to enhance advanced packaging capabilities, including BUMP and 2.5D technologies, to meet rising demand from AI and automotive sectors. The company reported strong annual growth, with revenue up 22% and net profit up 23%, driven by full-capacity production and increased overseas orders.
(Yicai) June 29 -- Shares of Forehope Electronic surged after the Chinese integrated circuit packaging and testing services provider said it plans to invest CNY10.3 billion (USD1.5 billion) building a new factory to enhance its high-end product capacity.
Forehope Electronic [SHA: 688362] closed 12.5 percent higher at CNY84.95 (USD12.40) a share today. The broader Shanghai stock market rose 1.2 percent.
The new plant is the third phase of a project Forehope Electronic is building in the Sino-Italy Ningbo Ecological Park in Yuyao, where it is based, the company announced late on June 26. It will utilize complete advanced packaging techniques, including BUMP, 2.5D, FC, and WB, with construction expected to take 96 months, it noted, without providing details such as the annual production capacity and product types.
The project focuses on advanced packaging techniques that are among the best in the industry and will help improve Forehope Electronic's research and development as well as industrialization capabilities in high-end chip packaging amid demand for such chips in downstream sectors exceeding supply, according to the company.
In addition, Forehope Electronic noted that the implementation of the project will provide more favorable support for the R&D and testing of its new high-end products, further its business layout in wafer-level advanced packaging, timely grasp the rapid development of the IC industry and the domestic substitution of high-end chip packaging, and bring good business development opportunities.
Forehope Electronic spent CNY4.5 billion (USD661.9 million) in the first phase of the project, which uses mature packaging tech and went into operation in 2020. The second phase, with an investment of CNY11.1 billion, uses high-end packaging tech and is still in the transition stage between trial production and production at full capacity.
Forehope Electronic mainly provides packaging and testing solutions for IC design houses, earning revenue via packaging and testing processing fees. Its chip packaging output surged 26 percent to 6.55 billion units last year from the previous year.
Its net profit soared 23 percent to CNY81.7 million (USD11.3 million), while revenue jumped 22 percent to CNY4.4 billion, Forehope Electronic said in its annual earnings report. The robust operating performance was primarily driven by booming demand from the artificial intelligence, auto, and Internet of Things chip sectors, which led to a surge in advanced packaging orders. Coupled with a significant increase in overseas orders, the company maintained full-capacity production throughout the year.
On Jan. 12, Forehope Electronic said it plans to invest CNY 2.1 billion to build a Malaysian integrated circuit packaging and testing plant in Penang, aiming to deepen ties with major overseas clients and consolidate and elevate its market share in the global IC packaging and testing business.
Editor: Martin Kadiev