en.Wedoany.com Reported - On June 29, the groundbreaking ceremony for the Dongsheng Hexin 3D Integrated Chip Manufacturing (Phase I) Project was held in the Lingang New Area of Shanghai. The first phase of the project plans a total investment of 10 billion yuan, with the implementing entity being Dongsheng Hexin Technology (Shanghai) Co., Ltd. The construction focuses on 3DIC mass production capacity, with a key emphasis on expanding ultra-high-density interconnection 3D multi-chip integration packaging capabilities. This project is a significant initiative by SJ Semiconductor to implement its strategic plan of "developing a one-stop service capability for advanced chiplet multi-chip integration packaging and testing." Upon completion, it will serve the needs of Chiplet, multi-chip integration, advanced packaging and testing, and high-performance chip system integration.
Although the project name includes "chip manufacturing," its construction focus is closer to advanced packaging manufacturing capabilities and a 3DIC industrialization platform. 3DIC requires integrating multiple chiplets, chips with different functions, or dies from different process sources into a higher-performance chip system through high-density interconnects, vertical stacking, silicon interposers, hybrid bonding, or related packaging processes.
This direction is closely related to the demands of AI computing, communication computing, smart terminals, industrial control, and automotive electronics. As the cost of advanced process nodes rises, the continued expansion of single large chips faces pressures in design, yield, and cost. Chiplet and multi-chip integration have become important paths to enhance system performance. SJ Semiconductor has long been focused on mid-end wafer manufacturing, 3D multi-chip integration, and advanced packaging and testing services. With the Dongsheng Hexin project landing in Lingang, the company will further strengthen its capacity foundation in ultra-high-density interconnect 3D multi-chip integration packaging. For customers, the value of such a platform lies in combining different chiplets into a deliverable, testable, and mass-producible chip system, shortening the engineering chain from high-performance chip design to application.
SJ Semiconductor has previously signed a "Strategic Cooperation Memorandum" and an "Investment Support Agreement" with the Management Committee of the China (Shanghai) Pilot Free Trade Zone Lingang New Area, and has completed the registration of the project implementing entity, Dongsheng Hexin Technology (Shanghai) Co., Ltd., with an initial registered capital of $140 million. According to the company's announcement, the project is expected to have a total investment of approximately 10 billion yuan, with the final investment amount subject to actual input, to be invested as needed based on construction progress. Funding sources include self-owned funds, self-raised funds, or other methods that meet the project's construction needs.
The Lingang New Area itself is gathering integrated circuit manufacturing, equipment, materials, packaging and testing, and related supporting enterprises. After the Dongsheng Hexin project is established, it can form closer manufacturing synergies with semiconductor projects in the region.
The construction challenges of advanced packaging projects mainly lie in equipment introduction, cleanroom environment, process stability, customer qualification, and yield ramp-up. Unlike traditional packaging, 3DIC has higher requirements for micro bumps, redistribution layers, high-density interconnects, thermal management, stress control, testing methods, and reliability verification. Groundbreaking is only the starting point for capacity construction; subsequent steps include factory construction, equipment installation, process debugging, sample verification, and customer introduction. By choosing to build the Phase I project in Lingang, SJ Semiconductor indicates that it will further transfer its advanced packaging R&D results into a mass production system, pushing its chiplet multi-chip integration packaging and testing capabilities from a technology platform to larger-scale commercial delivery.
The industry value of the Dongsheng Hexin project also lies in filling the packaging and testing capability gap in the high-performance chip supply chain. AI chips, high-performance computing chips, and complex SoCs increasingly rely on multi-chip collaboration. After front-end wafer manufacturing is completed, the packaging stage must undertake key tasks such as chip interconnection, heat dissipation, signal transmission, system integration, and final testing. With the expansion of 3DIC capacity, it can provide customers with more complex chiplet combinations and system-in-package solutions, and also help enhance the capacity of China's advanced packaging industry to undertake high-end chip supply chain roles. For equipment, materials, cleanroom engineering, testing systems, and automated production line companies, the groundbreaking of a 10-billion-yuan-level project will also bring long-term supporting demand.
The project still faces construction and market uncertainties. SJ Semiconductor has indicated that the project's implementation is related to factors such as market supply and demand, industrial policies, industry competition, company management, and professional talent. The investment scale and implementation progress may also change based on actual conditions. 3DIC and Chiplet are still in a rapid development stage, and customer demand, technology roadmaps, cost structures, and industry competition patterns will all affect project returns. For the Dongsheng Hexin Phase I project to truly realize its value, it needs to complete capacity ramp-up, process stabilization, customer qualification, and order conversion in subsequent construction, transforming the 10 billion yuan investment into sustainable advanced packaging and testing service capabilities.
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