Rumor
SMIC reported to develop in-house advanced packaging solutions independently of JCET joint venture
Tuesday, February 3, 2026 at 04:28 AM
SMIC is reportedly shifting away from its joint venture with JCET to develop its own proprietary advanced packaging solutions independently.
Context
SMIC is launching a dedicated research organization in Shanghai to develop independent advanced packaging solutions, marking a decisive shift from its historical reliance on JCET. Although the firms previously partnered in the SJ Semiconductor joint venture, SMIC sold its 55.87% stake for $397 million in 2021. This internal pivot allows SMIC to bridge the gap between front-end fabrication and final assembly, securing tighter control over the high-performance chip lifecycle as domestic demand for AI hardware surges.
This strategy is critical for China’s semiconductor ambitions as U.S. export controls limit access to the most advanced process nodes. By mastering proprietary 2.5D/3D packaging—comparable to TSMC’s CoWoS technology—SMIC can scale performance for clients like Huawei without relying on sub-7nm lithography. The expansion follows a $5.8 billion buy-out of its SMNC wafer unit in late 2025, positioning the foundry to deliver a fully localized, high-performance supply chain by 2026.
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