On July 2, Samsung Electro-Mechanics announced that it had signed a definitive agreement with Dongwoo Fine-Chem--a wholly owned subsidiary of Japan's Sumitomo Chemical Group--to establish a joint venture (JV) dedicated to manufacturing “glass cores,” a foundational material for next-generation semiconductor glass substrates.
The total investment from both companies is valued at approximately 480 billion KRW (around $310 million). Samsung Electro-Mechanics will hold a controlling 66% stake, with Dongwoo Fine-Chem owning the remaining 34%. The JV's headquarters and primary manufacturing facilities will be located within Dongwoo Fine-Chem's existing Pyeongtaek campus in Gyeonggi Province, South Korea. Following the agreement, the partners aim to complete regulatory and administrative procedures and formally establish the new company by the end of this year.
Provisionally named “GlaSSEM”--an acronym combining Glass, Samsung, Sumitomo, Electronic, and Materials--the JV reflects the companies' shared ambition to lead the advanced glass substrate market for next-generation semiconductor packaging. By combining their distinct strengths in materials and processing technologies, they aim to build a dominant position in this emerging field.
The newly formed venture will roll out production equipment, stabilize manufacturing processes, and undergo rigorous quality validation, with the goal of starting full-scale commercial operations in the second half of 2027. The timeline is designed to meet anticipated surging demand for glass substrates from global Big Tech companies.
Glass cores serve as the critical foundation for glass substrates, which are rapidly emerging as a breakthrough in semiconductor packaging. Compared with conventional organic plastic substrates, glass substrates offer a significantly lower coefficient of thermal expansion (CTE) and superior flatness. These physical properties make glass substrates far better suited to implementing ultra-fine circuitry on large, high-density semiconductor packages.
As high-performance computing (HPC) and artificial intelligence (AI) servers demand increasingly larger chips with microscopic circuit densities, many in the industry view glass substrates as a potential game-changer in next-generation packaging technology.
Through this strategic venture, Samsung Electro-Mechanics secures a stable, high-volume manufacturing and supply base for glass cores, sharpening its competitive edge in the advanced packaging market. The company aims to accelerate the commercialization of glass substrates by combining its substrate design and manufacturing capabilities with Sumitomo Chemical Group's world-class materials expertise and Dongwoo Fine-Chem's robust manufacturing infrastructure and operational know-how.
“The establishment of this joint venture is a proactive, strategic move to secure a leading competitive position in the glass core segment,” said Chang Duck-hyun, CEO of Samsung Electro-Mechanics. “By maximizing the synergy between our two companies, we aim to lead the structural shift in the next-generation semiconductor substrate market.”
