Japan's Panasonic Group recently announced plans to start construction on a semiconductor packaging materials plant in Shanghai's Fengxian district this July, with an investment of 120 million yuan ($16.47 million).

The facility, covering an area of about 10,000 square meters, aims to fortify the regional semiconductor materials supply chain while attracting a growing number of upstream and downstream support companies.

Located in Fengxian since 2001, Panasonic Industrial Devices Materials (Shanghai) Co Ltd has undergone two significant capital expansions — steadily expanding its operations to accommodate a workforce that now exceeds 200 employees.

The company specializes in supplying molding materials for the in-vehicle and home appliance sectors, along with packaging materials tailored for the semiconductors industry.

"Choosing Fengxian is our best-informed decision," said Kotaro Tanokura, general manager of Panasonic Industrial Devices Materials (Shanghai) Co Ltd, "as the local government has consistently provided full support whenever we expand our investment or upgrade our industry."

The ongoing improvements to the business climate in Fengxian have attracted a rush of foreign enterprises to establish a presence and thrive within the area.

A total of 43 out of the district's 100 wealthiest enterprises in 2023 were foreign-funded enterprises or Sino-foreign joint ventures.

These companies collectively contributed 7.34 billion yuan in tax payments, accounting for 41.4 percent of the total tax revenue generated by the 100 companies.

Source: Fengxian district government