Analysis of Investment Opportunities in AI Packaging Transformation of China's Semiconductor Assembly and Testing Industry

China’s semiconductor assembly and testing industry is in a critical stage of AI packaging transformation. The demand for high-performance chips driven by AI technology has promoted the development of advanced packaging technologies. According to SEMI’s forecast, the sales volume of semiconductor equipment will reach 126 billion US dollars in 2026, of which the demand for AI-driven advanced packaging equipment is the main growth point [1]. As three of the world’s top five OSAT enterprises, Changjiang Electronics Technology (JCET), Tongfu Microelectronics, and Huatian Technology are actively transforming to advanced packaging.

Financial data shows that the stock price performance of the three enterprises is differentiated. Tongfu Microelectronics has risen by 37.40% so far in 2025, while Changjiang Electronics Technology and Huatian Technology have fallen by 2.90% and risen by 2.87% respectively [0]. In terms of valuation, Tongfu Microelectronics’ PE is 58.10x, which is higher than Changjiang Electronics Technology’s 44.67x and Huatian Technology’s 45.19x [0]. In terms of capital expenditure and debt risk, Changjiang Electronics Technology has a high depreciation/capex ratio and low debt risk; Tongfu Microelectronics has positive free cash flow but high debt risk; Huatian Technology has negative free cash flow and medium debt risk [0].

1. AI packaging is the main growth point of the industry in the future, which will drive the technological upgrading and market scale expansion of the assembly and testing industry.
2. Chinese assembly and testing enterprises occupy an important position in the global OSAT field, but still need to catch up with international leading enterprises in advanced packaging technology.
3. The upgrading paths and competitiveness of the three traditional packaging manufacturers are different, and Tongfu Microelectronics’ stock price performance has shown the market’s positive expectations for its transformation.

: Market expansion brought by the growth of AI packaging demand, and opportunities for traditional manufacturers to enter high-value-added fields through technological upgrading.
: Technological upgrading requires a lot of R&D and capital investment, which may affect the financial status of enterprises; competitive pressure brought by the technological advantages of international leading enterprises; there may be uncertainty in the market demand for AI packaging.

This analysis shows that China’s semiconductor assembly and testing industry faces important investment opportunities in the AI packaging transformation, and the three enterprises of Changjiang Electronics Technology (JCET), Tongfu Microelectronics, and Huatian Technology are actively deploying. Investors need to pay attention to the changes in the enterprise’s technological progress, capital investment, and market competitiveness, while noting the risks brought by industry cyclical fluctuations and technical challenges.