Shenzhen Kaifa Technology Co., Ltd. (000021.SZ) has announced a major expansion plan to capture the surging demand for advanced packaging solutions driven by the explosive growth of the AI industry. The company aims to address the needs of its strategic clients and overcome both key technical barriers and current capacity constraints.

In an official statement, the firm revealed that its wholly-owned subsidiary, Pateo Technology (Shenzhen) Co., Ltd. ("Shenzhen Pateo"), will carry out a new project to expand its high-end memory chip packaging and testing capabilities. The project carries a total planned investment of RMB 1.85 billion.

The investment is structured into two core components. Firstly, RMB 1.22 billion will be allocated to establish a new wholly-owned subsidiary tasked with constructing a new manufacturing facility. According to calculations, this new plant is designed to support a monthly production capacity of 90,000 wafers for traditional packaging and testing, in addition to 10,000 wafers per month for 2.5D advanced packaging.

Secondly, the company will invest RMB 630 million dedicated to building a research and development line for 2.5D/3D advanced packaging technologies. Once the R&D line is fully operational and reaches its projected output, it is expected to add a monthly capacity of 100 wafers each for both 2.5D and 3D advanced packaging processes.