The controlling company of the largest Chinese chip manufacturer ChangXin Memory Technologies (CXMT) Inc. invests at least 17.1 billion yuan ($2.4 billion) in an advanced packaging plant in Shanghai that can be used to make AI memory.

Innotron, the parent company of CXMT, signed a contract with the Shanghai authorities in June to secure land plots. The preliminary launch of the operation of the new production site is scheduled for mid-2026. The relevant information is contained in official documents that have been published on the website of the Shanghai Government.

One of the mentioned documents notes that the project will focus on a wide range of packaging technologies, an advanced process called TSV, or through-silicon vias, required to make high-bandwidth memory used to power artificial intelligence apps. The production capacity of the plant is expected to be 30,000 packaging units per month.

Also in the current year, Innotron signed a deal with several investors to raise a total of 10.8 billion yuan. The relevant information is contained in a statement from GigaDevice Semiconductor Inc., one of the participating parties. These data were released in March.

Innotron is one of the main players in China’s efforts to compete with the United States in the emerging artificial intelligence industry. It is worth noting that the Asian country’s capabilities in the area of manufacturing chips necessary for the training and subsequent operation of machine intelligence systems are limited due to restrictions on the supply of equipment necessary for making advanced microcircuits from the US and some of its allies.

As we have reported earlier, AI Chip Makers Rebellions and Sapeon to Merge.