Huatian Benefits from USD 442M Plan to Expand Memory Packaging Capacity in China

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Shares of the leading semiconductor packaging and testing company surged to the daily trading cap after announcing a project to invest 3 billion yuan (approximately $442.2 million) in expanding its memory chip packaging and testing capacity at its Nanjing facility.

On the Shenzhen exchange, the stock closed 10% higher at 16.97 yuan ($2.48) per share, marking a 55% increase since the end of last year. The planned project, to be financed, constructed, and operated by the Nanjing-based unit, aims to add the capacity to handle an additional 430 million memory chips annually. This announcement came after the company’s stock market close on May 22.

The construction is scheduled to begin next month and is expected to wrap up by May 2028. Once operational at full capacity, the company projects the new facility will generate an estimated annual net profit of 126 million yuan ($18.6 million) on revenues of about 2.2 billion yuan ($317 million).

The primary use of the output from the new plant will include applications in artificial intelligence, data centers, servers, consumer electronics, smart devices, and automotive electronics. The company emphasized that this expansion will enhance its technological capabilities and support the development of a domestically controlled semiconductor supply chain.

The initial phase of the Nanjing facility, which started in 2020 with a 1.5 billion yuan ($220 million) investment, already handles packaging for memory, computing, sensors, and power management chips. The second phase, with a 7 billion yuan ($1 billion) budget, is currently under construction and is focused on high-end computing chips. The newly announced 3 billion yuan expansion will concentrate on memory chips.

The firm returned to profitability in the first quarter of this year, driven by strong demand for memory packaging and government subsidies. During that period, net profit reached 86.8 million yuan ($12.5 million), with revenues rising 35% year-over-year to 4.8 billion yuan ($690 million).