China’s storage makers aim to climb value chain with advanced packaging bets

Chinese storage manufacturers are transitioning from packaging chips into modules to more advanced wafer-level operations. Shanghai-listed Biwin Storage Technology announced a significant investment of 4.5 billion yuan (US$672 million) in an advanced packaging and testing project in Dongguan, Guangdong province. The total investment for the project, which includes three phases, surpasses the 3.09 billion yuan set aside for the first two phases.

Biwin's stock filing revealed the facility's projected monthly capacity to increase from several thousand wafers to 10,000 by the end of 2027.

This strategic move into advanced packaging indicates a push towards more sophisticated wafer-level technologies, reflecting the evolving demands of AI devices. Biwin already operates a traditional memory and system-in-package (SiP) base in Huizhou, where they source chips from external suppliers. In addition to Biwin's efforts, other Chinese storage suppliers, such as Shenzhen Techwinsemi Technology and Shenzhen Longsys Electronics, are also investing in their capabilities.

These companies are enhancing their packaging processes and focusing on product definition, supply-chain management, and customer development capabilities. Analysts suggest that the investments signify a shift in the Chinese memory module suppliers' business model, moving beyond buying chips, assembling products, and selling them to downstream channels.