JCET Group, a global provider of integrated circuit back-end manufacturing and technology services, has reported record-breaking financial results for the third quarter and the first nine months of 2026. Driven by a strategic pivot toward advanced packaging technologies and high-growth end markets like artificial intelligence and automotive electronics, the company has demonstrated steady revenue growth and significantly improved profitability. To sustain this momentum, JCET's Board of Directors has approved a massive increase in its 2026 capital expenditure budget, signaling an aggressive expansion of its high-end manufacturing capabilities.

Financial Performance: Record Revenue and Surging Profitability

During the first nine months of 2026, JCET recorded revenue of RMB 30.95 billion, representing an increase of 8% year over year and setting a record high for the period. The company's profitability saw even more dramatic gains, with net profit attributable to shareholders rising 69.6% year over year to RMB 1.62 billion. Excluding non-recurring gains and losses, net profit attributable to shareholders reached RMB 1.56 billion, representing a 99.2% increase from the same period last year.

The third quarter of 2026 alone delivered a record revenue of RMB 11.43 billion, which is an increase of 13.5% year over year and a 10.3% sequential growth from the previous quarter. Net profit attributable to shareholders for the quarter totaled RMB 770 million, up 60% year over year and 39.4% sequentially. This performance marks a continuous sequential improvement in both revenue and profitability for each quarter of 2026.

A key driver of this profitability was the improvement in JCET's gross margin, which rose by 2.3 percentage points year over year during the first nine months of 2026. This margin expansion was primarily driven by a more favorable product mix across the company's manufacturing sites in China and overseas, reflecting the successful commercialization of its advanced packaging investments.

Strategic Capex Expansion: Doubling Down on Advanced Packaging

Rather than pursuing short-term gains from financial investments, JCET has focused its capital allocation on its core operations, specifically targeting advanced packaging technologies and advanced manufacturing capacity. This disciplined strategy has established a stronger foundation for long-term innovation, operational efficiency, and sustainable earnings growth.

To accelerate this strategy and meet evolving business needs, JCET's Board of Directors approved a substantial increase in the company's 2026 capital expenditure budget, raising it from RMB 9.98 billion to RMB 17.31 billion. This capital will be deployed to expand high-end advanced packaging capacity and support the company's technology roadmap.

Market Segments: AI Computing and Automotive Drive Growth

JCET's strategic alignment with high-growth end markets has yielded significant returns, particularly in computing and automotive electronics:

Computing Electronics
54

This segment primarily addresses the demand for computing, memory, interconnect, and power solutions used in AI data center infrastructure. Revenue from the Computing Electronics business increased 54% year over year, accounting for 30.9% of JCET's total revenue in the first nine months of 2026.

Automotive Electronics
30

JCET maintained strong momentum in this sector, supported by the commercialization of its automotive electronics facility in Shanghai. As capacity at this facility came online, revenue from the automotive electronics business grew 30% year over year.

Technology Roadmap: Glass Substrates, Panel-Level Packaging, and Co-Packaged Optics

To address the increasing demands of artificial intelligence and high-performance computing, JCET is advancing its technology roadmap in high-density heterogeneous integration, low-power interconnects, and efficient power delivery. Key initiatives include:

  • Glass Substrate and Panel-Level Packaging: JCET is working with multiple customers on the joint development of glass substrate and panel-level packaging technologies, with programs now progressing to the pilot-line construction phase.
  • Co-Packaged Optics (CPO): Through its XDFOI advanced packaging platform, JCET has established heterogeneous integration capabilities for photonic integrated circuits and electronic integrated circuits. The company has also developed the capability to co-package optical engines with switching and computing chips.

Global Footprint: Transforming Overseas Operations

JCET is accelerating the expansion of its high-end advanced packaging capacity across its global manufacturing and service network:

  • China: JCET Microelectronics (Jiangyin) Co., Ltd. continued to expand its production capacity for high-end advanced packaging, while the company's new high-end advanced packaging project in Shanghai progressed steadily.
  • South Korea: The manufacturing site in South Korea is accelerating the introduction of high-end advanced packaging programs for leading global wafer manufacturers and AI customers.
  • Singapore: The company is rapidly shifting its business mix in Singapore toward higher-value applications, including data centers.

By leveraging its coordinated global network across China, South Korea, and Singapore, JCET aims to strengthen cross-site collaboration, R&D support, high-volume manufacturing, and supply chain capabilities for its global customer base.