Samsung Electro-Mechanics and Sumitomo to Establish Glass Substrate Joint Venture Worth 480 Billion Won

Securing Competitiveness in Glass Substrate Materials

Finalizing Joint Venture Establishment Within the Year

Establishing a Stable Supply Base for Glass Core

On July 2, Samsung Electro-Mechanics announced that it has signed a definitive agreement to establish a joint venture (JV) with Dongwoo Fine-Chem, a subsidiary of Japan’s Sumitomo Chemical Group, for the production of “Glass Core,” the key material for glass substrates.

Through this agreement, the two companies will establish a joint venture tentatively named “GlaSSEM” to secure competitiveness in core materials for glass substrates. The name “GlaSSEM” stands for Glass, Samsung, Sumitomo, Electronic, and Materials, reflecting the vision to lead the next-generation advanced glass material market for semiconductor packages by leveraging both companies’ differentiated materials and process technologies.

The total investment in the joint venture amounts to approximately KRW 480 billion, with Samsung Electro-Mechanics holding a 66% stake and Dongwoo Fine-Chem holding 34%. The headquarters and manufacturing base of the JV will be located within Dongwoo Fine-Chem’s Pyeongtaek plant in Gyeonggi Province. Both companies plan to complete all necessary procedures and formally establish the joint venture within this year following the signing of the definitive agreement.

Samsung Electro-Mechanics Glass Substrate. Samsung Electro-Mechanics.

The “Glass Core” produced by the JV is a crucial material for glass substrates, which are gaining attention as next-generation semiconductor substrates. Compared to conventional plastic (organic) substrates, glass substrates have a lower coefficient of thermal expansion and superior flatness, making them advantageous for large-area, high-density semiconductor packages. In particular, as the size of packages for high-performance semiconductors such as AI servers and HPC increases and the demand for finer circuitry grows, glass substrates are emerging as a “game changer” for next-generation packaging technology.

Through the establishment of this joint venture, Samsung Electro-Mechanics aims to secure a stable manufacturing and supply base for “Glass Core,” the essential material for glass substrates, and strengthen its competitiveness in the next-generation package substrate business. By combining Samsung Electro-Mechanics’ semiconductor substrate design and manufacturing capabilities, Sumitomo Chemical Group’s materials technology, and Dongwoo Fine-Chem’s production infrastructure and operational expertise, the companies plan to accelerate the commercialization of glass substrates. GlaSSEM will gradually proceed with building production facilities, process stabilization, and quality verification, with the goal of full-scale operation starting in the second half of 2027. This will enable the companies to proactively respond to the demand from global big tech firms for glass substrates.

Jang Deokhyun, President of Samsung Electro-Mechanics, stated, “The establishment of this joint venture is a strategic move to secure core competitiveness in glass core materials ahead of the curve. By maximizing the synergy between our two companies, we will lead the paradigm shift in the next-generation semiconductor substrate market.”

Keiichi Iwata, Chairman of Sumitomo Chemical Group, emphasized, “This collaboration will further enhance the competitiveness of both companies in the advanced semiconductor materials sector. We will continue to build a long-term partnership through ongoing technological cooperation.”

This content was produced with the assistance of AI translation services.