Samsung Electro-Mechanics has partnered with Japan's Sumitomo Chemical Group to manufacture essential components for glass substrates, which are considered advanced semiconductor bases. With increasing needs for high-capacity semiconductors utilized in AI servers, Samsung Electro-Mechanics is actively expanding its presence in this material sector.
On the second day, Samsung Electro-Mechanics revealed that it has entered into a primary agreement to form a joint venture called 'Glassem' together with Dongwoo Fine-Chem, which is fully owned by the Sumitomo Chemical Group, aimed at manufacturing 'Glass Core,' an essential component for glass substrates.
Samsung Electro-Mechanics announced its plan to purchase 63.82 million shares of Glassem at a cost of 319.1 billion South Korean won. After this acquisition, Samsung Electro-Mechanics' ownership percentage will reach 66.2%. The joint venture has total capital of 482.1 billion South Korean won and primarily engages in producing and distributing Glass Core. The deal is set to finalize in September.
A glass base refers to a slim panel that supports and links integrated circuit chips. Although materials based on plastic were commonly utilized earlier, bigger and more advanced chips, like those found in artificial intelligence devices, demand stronger and more accurate substances. Glass bases offer benefits because of their ability to withstand deformation when exposed to high temperatures and provide smooth surfaces, making them well-suited for tightly linking several semiconductor components.
The Glass Core serves as the fundamental component for these glass substrates. Through this partnership, Samsung Electro-Mechanics seeks to consistently obtain the critical materials required for its glass substrate operations.
The Sumitomo Chemical Group is one of Japan's top companies specializing in chemicals and advanced materials, supplying high-performance products used in semiconductors and display technologies. Its local affiliate, Dongwoo Fine-Chem, produces various chemicals utilized in semiconductor manufacturing, including photoresists and optically clear films, among others.
This collaboration brings together Samsung Electro-Mechanics' expertise in designing and producing semiconductor packaging substrates with the Sumitomo Chemical Group's advanced materials technology and Dongwoo Fine-Chem's local manufacturing facilities.
The shared business operation's main office and manufacturing site will be situated inside Dongwoo Fine-Chem's Pyeongtaek facility in Gyeongsang Province. The firms intend to complete the formation of the partnership by the end of this year, after which they will proceed with setting up the production plant, stabilizing procedures, and confirming product standards, aiming for comprehensive operations during the latter part of 2027.
The president of Samsung Electro-Mechanics, Chang Duck-hyun, said, "We aim to fully leverage the collaboration between both firms to drive the transformation in the upcoming semiconductor base material industry."
Sumitomo Chemical Group CEO Keiichi Iwata stated, "This partnership will enhance both firms' competitive edge in the high-tech semiconductor materials industry."