Chinese backend firm JCET enters supply chain of Samsung, LG

China-based backend house Jiangsu Changjiang Electronics Technology (JCET), through its production subsidiary JCET STATS ChipPAC Korea (JSCK), has reportedly cut into the supply chain of major Korean brands including Samsung and LG Electronics for packaging their handset and wearable chipsets with its SiP (system in package) technology, according to industry sources.

The sources said Korea’s SiP market is now mainly shared by Amkor and JCET, and the latter is also actively moving to tap the 5G AiP (antenna in package) business in the country, which is expected to grow significantly in 2020.

JCET is expected to rely on 5G SiP and AiP packaging business to improve its revenues and profits in 2020. The company’s financial statement showed that its second-quarter 2019 revenues plunged 43.98% on year to US$168 million, with net loss for the quarter reaching US$25.48 million, up from US$23.48 million registered a year earlier.

After spending CNY626 million (US$89.49 million) in 2017 and another CNY415 million in 2018 on expanding its SiP capacity, JCET now can offer strong capacity support for its clients in China and Korea, the sources said.