(Yicai Global) June 24 -- Shares of China’s Shennan Circuits jumped after the printed circuit board maker said it will invest CNY6 billion (USD926 million) to build a factory to meet a growing IC packaging demand.

Shennan Circuits' stock price [SHE:002916] rose by the daily limit of 10 percent to CNY106.90 (USD16.50), the highest since March.

The PCB manufacturer's new plant in Guangzhou will be able to make more than 200 million flip chip ball grid array packages per year, the Shenzhen-based firm said in a statement yesterday.

The products are used to support and protect chips and they are widely used in data centers, consumer electronics, and automotive products.

The construction of the fifth-generation mobile communication networks and smart devices create new demand in the IC industry, said the firm. Data centers, intelligent driving, artificial intelligence, and high-performance computing are all potential markets for the company’s products, it added.

Investment in the first phase of the project is at least CNY3.8 billion and the second phase should cost no less than CNY2 billion. The company didn't disclose its project schedule.

Shennan Circuits will actively introduce talents from outside to the company and accelerate the development of new technologies, it said. Moreover, the firm has secured raw materials after the new project is operational.

Editor: Emmi Laine, Xiao Yi