(Yicai) March 5 -- Shares of Jcet Group soared by the exchange-imposed daily trading limit after the Chinese semiconductor packaging and testing service provider said it plans to acquire 80 percent of the Shanghai factory of US flash memory giant SanDisk.

Jcet [SHA: 600584] closed up 10 percent at CNY30.68 (USD4.26) in Shanghai today.

Jcet will invest USD624 million to buy an 80 percent stake in the unit of Sandisk China operating a flash memory storage product packaging and testing plant in Shanghai, the Jiangsu province-based firm announced yesterday, citing a legally binding equity purchase deal the pair signed.

SanDisk China’s Shanghai plant mainly researches, develops, packages, and tests advanced flash memory storage products used in the mobile communications, industrial, internet of things, automotive, smart home, and consumer terminal fields, according to Jcet.

The operator of the plant reported an operating revenue of CNY1.6 billion (USD220 million) and a net profit of CNY220 million (USD30.6 million) in the first half of last year, Jcet noted. The figures were CNY3.5 billion and CNY360 million, respectively, in 2022.

Western Digital, the parent company of SanDisk China, is the world’s leading memory manufacturer and one of Jcet’s most important clients since 2003.

After the acquisition is completed, the plant’s operator will become a joint venture between Jcet and Western Digital, which will have the two companies, as well as SanDisk China, as its main or sole customers, Jcet noted, adding that the JV will help deepen the business relationship between the two shareholders.

Editor: Futura Costaglione