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 had signed a definitive agreement with Dongwoo Fine-Chem, a subsidiary of Japan's Sumitomo Chemical Group, to establish a joint venture (JV) for the production of 'Glass Core,' a 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' combines Glass, Samsung, Sumitomo, Electronic, and Materials, reflecting the companies' ambition to lead the next-generation advanced glass material market for semiconductor packages based on their differentiated material and process technologies.

The total investment from both companies will amount to approximately 480 billion won, with Samsung Electro-Mechanics holding a 66% stake and Dongwoo Fine-Chem holding 34%. The joint venture's headquarters and production base will be located within Dongwoo Fine-Chem’s Pyeongtaek plant in Gyeonggi Province. After signing this definitive agreement, the companies plan to complete all necessary procedures and finalize the establishment of the joint venture within the year.

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

The 'Glass Core' produced by the joint venture is the core material for glass substrates, which are gaining attention as next-generation semiconductor substrates. Compared to traditional plastic (organic) substrates, glass substrates have a lower coefficient of thermal expansion and superior flatness, making them advantageous for realizing large-area and high-density semiconductor packages. Particularly, as the package sizes of high-performance semiconductors such as AI (artificial intelligence) servers and HPC increase and the need for finer circuit patterns grows, glass substrates are emerging as a 'game changer' in 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 key material for glass substrates, and strengthen competitiveness in the next-generation package substrate business. By combining Samsung Electro-Mechanics’ semiconductor substrate design and manufacturing capabilities, Sumitomo Chemical Group’s material technology, and Dongwoo Fine-Chem’s production infrastructure and operational expertise, the companies intend to accelerate the commercialization of glass substrates. GlaSSEM will sequentially build production facilities, stabilize processes, and verify quality, with the goal of commencing full-scale operations in the second half of 2027. This will enable proactive responses to the growing demand for glass substrates among global big tech companies.

Dukhyun Jang, President of Samsung Electro-Mechanics, stated, "The establishment of this joint venture is a strategic move to secure the core competitiveness of Glass Core ahead of the curve," adding, "We will maximize the synergy between the two companies to lead the paradigm shift in the next-generation semiconductor substrate market."

Keiichi Iwata, Chairman of Sumitomo Chemical Group, emphasized, "This collaboration will further strengthen the competitiveness of both companies in advanced semiconductor materials," and added, "We will continue our long-term partnership through ongoing technological cooperation."

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