Samsung Electro-Mechanics signed a preliminary agreement with Japan’s Sumitomo Chemical to explore a joint venture manufacturing glass cores, positioning the Korean electronics component maker to catch up in an increasingly crowded market for next-generation semiconductor packaging materials.
The memorandum of understanding signed Nov. 4 calls for Samsung Electro-Mechanics to hold a majority stake in the proposed venture, with Sumitomo Chemical and its Korean subsidiary Dongwoo Fine-Chem as minority investors. The companies plan to negotiate ownership structure and business schedules with a target of signing a final agreement next year, and the joint venture headquarters would be located at Dongwoo Fine-Chem’s Pyeongtaek facility.
Glass substrates offer superior flatness and thermal properties compared to conventional organic materials, enabling higher chip density and faster processing speeds. The technology has become essential for artificial intelligence accelerators and high-performance computing systems that require greater bandwidth and power efficiency than traditional silicon-based packaging can deliver.
Samsung Electro-Mechanics is currently producing glass substrate prototypes at its Sejong plant pilot line, with mass production planned to begin after 2027. That timeline puts the company behind several competitors in the commercialization race. SKC’s U.S. subsidiary Absolics aims to commence mass production by the end of this year at its Georgia facility, while Intel has been developing glass substrates for nearly a decade and plans to use them in commercial products by 2030.
The global glass substrate market is projected to grow from $7.2 billion in 2024 to $10.3 billion by 2034. However, commercialization has proved challenging due to glass brittleness and manufacturing precision requirements, leaving uncertain whether Samsung’s partnership approach will yield competitive advantages over rivals pursuing independent development strategies.
