Two major wafer fabs release annual reports: SMIC establishes an Advanced Packaging Research Institute, and Jinghe Integration targets AI server power management chips.

Everyday Reporter | Zhu Chengxiang
Everyday Editor | Huang Bowen

On the evening of March 26, two A-share wafer foundry companies simultaneously released their 2025 annual reports. According to TrendForce, in the global wafer foundry ranking for Q4 2025, SMIC and JCET both ranked in the top ten. Among them, SMIC ranked third, only behind TSMC and Samsung.

It is noteworthy that SMIC (SH688981, stock price 96.88 RMB, market cap 775.18 billion RMB), which has long focused on wafer manufacturing, is also beginning to pay attention to advanced packaging. In this year’s report, SMIC stated that the company is collaborating with upstream and downstream partners in the industry chain, establishing an Advanced Packaging Research Institute to promote high-quality industry development.

JCET (SH688249, stock price 27.94 RMB, market cap 56.092 billion RMB), originally mainly manufacturing DDIC (display driver IC), has been expanding into CIS (camera sensor) business. Under the wave of AI, JCET’s next target is AI server power management chips, which are already under development, with 90nm BCD (a process platform) products continuously being validated.

Does SMIC also research advanced packaging?

In 2025, the rapid development of AI (artificial intelligence) and the resulting surge in storage chip prices will have a huge impact on the semiconductor industry. So, how does SMIC view this?

The company stated that as downstream application scenarios become more diversified, fields such as AI, data centers, and autonomous driving are leading the industry into a new cycle of rapid growth. Consumer electronics and other smart terminals are iterating and upgrading, and the localization of the industry chain is accelerating, increasing the demand for high-end chips in the domestic manufacturing sector. Against this backdrop, the company focuses on cultivating and developing new productive forces, continuously innovating to strengthen core competitive advantages.

By 2025, SMIC will maintain high R&D investment, with R&D spending of 5.519 billion RMB, accounting for 8.2% of sales revenue; improve its technological innovation system; actively respond to customer needs; and continue process iteration and product upgrades. The company is also collaborating with upstream and downstream partners in the industry chain, establishing an Advanced Packaging Research Institute to promote high-quality industry development.

It is known that SMIC has always focused on front-end wafer manufacturing. It once jointly invested with the leading domestic packaging and testing company Changdian Technology to establish an advanced packaging company, SMIC Changdian. However, SMIC later sold its shares in SMIC Changdian, which was the predecessor of Shenghe Jingwei. Currently, Shenghe Jingwei has grown into a leading domestic advanced packaging company.

SMIC did not elaborate much on the establishment of the Advanced Packaging Research Institute, but it may trigger many external speculations. Currently, the bottleneck for AI chips is not only advanced process technology but also advanced packaging.

Looking ahead to 2026, SMIC states that the effects of overseas return of the industry chain and domestic customers replacing overseas products with new ones will continue, providing sustained growth space for the domestic industry chain. The strong demand for AI storage chips has squeezed supply in other application fields such as mobile phones, especially in mid- and low-end markets, causing terminal manufacturers to face shortages and price increases. Even if terminal manufacturers pass on costs through price hikes, it may lead to decreased demand for end products.

Leveraging its technological reserves and leading advantages in segments such as BCD, analog, storage, MCU (microcontroller), and high-end display drivers, along with customer product layouts, SMIC can maintain a favorable position during this industry cycle. The company will actively respond to market demand and promote continued revenue growth in 2026.

Under the premise of no major changes in the external environment, SMIC’s guidance for 2026 is: sales revenue growth higher than the industry average, with capital expenditures roughly the same as in 2025.

JCET gradually rising

When talking about wafer foundries, SMIC and Huahong are often mentioned, but Hefei-based JCET is also gradually emerging. It is reported that JCET is a leading 12-inch wafer foundry company with advanced process manufacturing capabilities and capacity advantages. According to TrendForce’s Q4 2025 global wafer foundry revenue ranking, JCET ranked ninth worldwide and third among Chinese mainland companies.

In 2025, JCET’s revenue was 10.885 billion RMB, a year-on-year increase of 17.69%; net profit attributable to shareholders was 704 million RMB, up 32.16%. JCET stated that the revenue growth was mainly due to increased sales volume and continuous revenue expansion of its products during the reporting period.

JCET’s main products currently include DDIC, CIS, PMIC (power management IC), logic chips, and MCUs. Although the main revenue during the reporting period mainly came from DDIC, accounting for about 58.06%, this was a 9.44 percentage point decrease compared to 2024’s proportion (67.50%). Meanwhile, CIS product revenue share increased by 5.38 percentage points over 2024, indicating an improved product structure.

JCET said that although the company is developing and continuously optimizing other technology platforms such as PMIC, MCU, and logic, and actively expanding the market, it will take time for new products to generate scaled revenue. In the short term, if demand in the display driver IC and image sensor markets declines, leading to adverse changes in production or sales, it could negatively impact the company’s profitability and operating cash flow.

In fact, with the development of CIS, JCET has gradually moved away from relying solely on DDIC “single-core” driving. If PMIC products ramp up, product sales may become more balanced.

Cover image source: AIGC