(Yicai) June 25 -- JCET Group shares surged to the daily trading limit after the Chinese chip packaging and testing giant unveiled plans to invest CNY7.8 billion (USD1.2 billion) in a new semiconductor packaging and testing plant in Shanghai to expand its advanced packaging capacity and meet growing customer demand.

JCET's stock [SHA: 600584] closed up 10 percent at a record high of CNY104.17 (USD15.30) today. The company's net profit jumped 43 percent in the first quarter from a year earlier, helped by strong demand from the global artificial intelligence computing industry, while its share price has almost tripled since early April.

The Jiangsu province-based company plans to build the facility in the Lin-gang Special Area of the China Shanghai Pilot Free Trade Zone through a newly established project company with registered capital of CNY4 billion, it said yesterday. The investment comes as demand for advanced packaging continues to rise, driven by the global AI computing boom.

The project will be built in two phases. The first phase will include the construction of production facilities and the procurement and installation of equipment, with completion scheduled for the second half of 2028. The second phase will focus on expanding production capacity.

The company did not disclose additional details, such as the plant's product mix or planned annual capacity. It said the timing of the second phase will be adjusted dynamically based on technological developments, market demand, and the progress of the first phase.

JCET is the Chinese mainland's largest semiconductor packaging and testing company and the world's third-largest. It provides one-stop chip manufacturing solutions for global semiconductor customers. The company held about 12 percent of the global market last year and more than 35 percent of China's domestic market. Its automotive-grade chip packaging and testing plant in Shanghai's Lin-gang Special Area began operations in March this year.

Editor: Emmi Laine