Samsung Electro-Mechanics excels in race for glass substrate commercialization

Samsung Electro-Mechanics CEO Chang Duck-hyun, right, poses with Sumitomo Chemical Chairman Keiichi Iwata during a memorandum of understanding signing ceremony in Tokyo in this handout photo released Wednesday. Courtesy of Samsung Electro-Mechanics

Samsung Electro-Mechanics is gaining an edge in the industry's race to commercialize glass core substrates, a next-generation semiconductor packaging material, by agreeing to establish a joint venture for manufacturing glass core with Japan's Sumitomo Chemical.

The Korean company said Wednesday that its CEO Chang Duck-hyun, Sumitomo Chemical Chairman Keiichi Iwata and Dongwoo Fine-Chem CEO Lee Jong-chan attended a memorandum of understanding (MOU) signing ceremony in Tokyo the previous day. Dongwoo Fine-Chem is Sumitomo Chemical’s Korean subsidiary.

Through the agreement, the three companies plan to combine their technological expertise and global networks to accelerate the establishment of manufacturing and supply lines for glass cores used in package substrates and to strengthen their market presence.

Under the joint venture, Samsung Electro-Mechanics will hold a majority stake, while Sumitomo will participate as an additional shareholder. The companies plan to finalize details such as the shareholding structure, business timeline and the name of the new entity before signing the official agreement next year.

Glass core is a key material for glass core semiconductor substrate, which is viewed as a next-generation substrate.

Conventional organic substrates mostly use plastic materials such as printed circuit boards for the core to allow for low-cost production. However, they have low heat resistance and are prone to warpage, which requires the use of an intermediate layer called an interposer. This increases production costs and slows down the manufacturing process.

Glass core substrates replace the conventional plastic core with glass, eliminating the need for an interposer while offering greater resistance to heat and warping. Thanks to these advantages, electronics component makers are in a heated race to commercialize the technology, as early market entry is expected to deliver significant competitive advantages.

The joint venture will focus on developing and manufacturing glass cores, and its headquarters will be located at Dongwoo Fine-Chem’s plant in Pyeongtaek, Gyeonggi Province. The location will serve as the initial production base for the material.

Samsung Electro-Mechanics has established a pilot line at its Sejong plant and is currently producing prototype glass package substrates. Full-scale mass production is scheduled to begin after 2027 in cooperation with the joint venture.

“Glass core is the key material that will change the landscape of the substrate market in the future,” Chang said. “The MOU will be a new growth engine in the next-generation semiconductor packaging market by combining the three companies’ cutting-edge capabilities.”

“Through our collaboration with Samsung Electro-Mechanics, we expect to create strong synergies in the advanced semiconductor packaging sector,” Iwata said.