Wedoany.com Report-Nov. 11, Samsung Electro-Mechanics has signed a memorandum of understanding (MOU) with Sumitomo Chemical Co. in Tokyo, Japan, to form a joint venture for producing Glass Core, a vital component for advanced package substrates.

The signing event took place in Tokyo and included Chang Duckhyun, President of Samsung Electro-Mechanics; Keiichi Iwata, Chairman of Sumitomo Chemical; Nobuaki Mito, President of Sumitomo Chemical; and Lee Jongchan, President of Dongwoo Fine-Chem, a Sumitomo subsidiary, plus other senior leaders.

This partnership addresses challenges in package substrate development as artificial intelligence (AI) and high-performance computing (HPC) progress swiftly. Glass Core serves as a foundational element for future semiconductor package substrates, enabling denser and larger designs due to its reduced thermal expansion and better surface evenness over traditional organic options.

Samsung Electro-Mechanics, Sumitomo Chemical, and Dongwoo Fine-Chem will combine their expertise and international reach to build production and distribution systems for Glass Core, speeding up its adoption.

In the venture, Samsung Electro-Mechanics will hold the largest share as the main contributor, with Sumitomo Chemical Group as a smaller partner. They intend to settle on ownership details, timelines, and company title, targeting a formal contract in 2026. The base will be at Dongwoo Fine-Chem’s Pyeongtaek facility, which will start as the first manufacturing site.

Chang Duckhyun, President of Samsung Electro-Mechanics, said, “As the AI era accelerates, demand for ultra-high-performance semiconductor package substrates continues to grow, and the glass core will be a key material that reshapes the landscape of the future substrate market. This agreement will provide an opportunity to combine the advanced capabilities of the three companies and establish a new growth engine in the next-generation semiconductor package market. We will continue to strengthen our technological leadership and take the lead in building an advanced package substrate ecosystem.”

Keiichi Iwata, the Chairman of Sumitomo Chemical said, “Through cooperation with Samsung Electro-Mechanics, we expect to generate significant synergy in the advanced semiconductor back-end process sector. We will further solidify our long-term partnership through this project.”

Lee Jongchan, the President of Dongwoo Fine-Chem added, “It is very meaningful to have the opportunity to lead the advanced semiconductor package materials sector by integrating the technological capabilities of Samsung Electro-Mechanics and Dongwoo Fine-Chem. Based on the technology accumulated by Sumitomo Chemical, we will actively utilize our strong execution capabilities and infrastructure to ensure the success of this collaboration and grow into a leading company in advanced semiconductor packaging materials.”

Samsung Electro-Mechanics is developing prototypes of glass package substrates at its Sejong facility's test line. Full-scale output is scheduled to commence via the joint venture after 2027.

The collaboration positions the firms to meet escalating needs for efficient semiconductor solutions. Glass Core's properties support integration of more components in compact spaces, crucial for AI accelerators and data center chips. By pooling resources, the group can scale quickly, reducing development risks.

Sumitomo Chemical's materials science background complements Samsung's electronics proficiency and Dongwoo's chemical processing strengths. The Pyeongtaek location offers established infrastructure, facilitating smooth transition to volume production.

This initiative reflects broader industry shifts toward innovative substrates to sustain performance gains. Successful rollout could enhance supply chain resilience amid global chip demands.