Kaifa Plans $273M Expansion of AI Memory Chip Packaging Lines

Kaifa Technology said on the evening of Sept. 9 that its wholly-owned subsidiary Shenzhen Payton Technology plans to invest about CNY1.8 billion (USD273 million) to expand memory chip packaging and testing capacity and build advanced packaging R&D lines, tapping into growth opportunities from the fast-developing AI industry.

The company will allocate CNY1.2 billion to build a memory chip packaging and testing production line with a planned monthly capacity of 90,000 wafers for conventional packaging and testing and 10,000 wafers for 2.5D advanced packaging. Another CNY630 million will go toward R&D production lines for 2.5D and 3DS advanced packaging, each designed to handle 100 wafers per month.

2.5D packaging is the mainstream advanced packaging solution for AI servers, typically used to integrate high-bandwidth memory with AI computing chips in the same package. 3DS is a vertical chip-stacking process used to stack DRAM dies inside HBM products. Both projects are scheduled to be completed and enter production in December 2028.

Kaifa said the investment will help strengthen its position in semiconductor packaging and testing, improve its response to client demand, accelerate advanced packaging development and ease capacity constraints. The conventional production line is expected to have a pre-tax payback period of just over 12 years, while the R&D lines are expected to mainly enhance technological capabilities and core R&D competitiveness.

Separately, the company announced that Chairman Han Zongyuan retired and stepped down, and Vice President Zhou Gengshen was elected to succeed him.