(Yicai) Nov. 15 -- Shares of Forehope Electronic advanced after the Chinese integrated circuit packaging and testing services provider said it plans to invest CNY2.2 billion (USD304 million) to build a new IC packaging and testing plant.

Forehope [SHA: 688362] jumped up as much as 6.5 percent early today, and was trading up 2.9 percent at CNY33.81 (USD4.67) as of lunch break in Shanghai today.

The new plant, which is expected to be built in the Sino-Italy Ningbo Ecological Park in Ningbo, Zhejiang province, will have an annual packaging and testing capacity of 870 million pieces of ICs, the Ningbo-based firm announced yesterday. The construction will likely last 36 months, Forehope added.

The project will effectively alleviate Forehope’s production capacity and delivery pressures to meet customers’ demands promptly and enhance the company’s competitive advantage in advanced packaging and testing, laying the foundation for new high-end orders, the firm noted.

Forehope mainly provides IC packaging and testing solutions for IC designers, charging for packaging and testing services. It has established strategic partnerships with leading customers in different segments, according to its latest annual report.

Editor: Futura Costaglione