South Korean, Japanese firms consider joint venture for next-generation chip materials

SEOUL, November 05 (AJP) - Samsung Electro-Mechanics said on Wednesday that it had signed a memorandum of understanding with Japan’s Sumitomo Chemical Group to explore establishing a joint venture for producing glass cores, a key component in next-generation semiconductor packages.

The agreement comes as they are seeking to strengthen their foothold in the fast-evolving semiconductor packaging industry, where new materials are increasingly critical to supporting artificial intelligence and high-performance computing.

Glass cores are viewed as a breakthrough material for next-generation chips. Unlike conventional organic substrates, they offer superior flatness and lower thermal expansion, allowing for more densely packed circuits and improved performance in large-area semiconductor packages.

Under the agreement, Samsung Electro-Mechanics, Sumitomo Chemical, and Dongwoo Fine-Chem — a Korean materials affiliate of Sumitomo — plan to combine their respective expertise and global networks to accelerate the development and commercialization of glass-core technologies.

Samsung Electro-Mechanics will hold a majority stake in the proposed venture, with Sumitomo Chemical as a key investor. The companies said they plan to finalize share structures, business timelines, and a corporate name by next year.

The joint venture’s headquarters and initial production site will be located at Dongwoo Fine-Chem’s facility in Pyeongtaek, south of Seoul.

“Glass cores are a game-changer for the future substrate market,” said Jang Deok-hyun, president of Samsung Electro-Mechanics, in a statement. “This agreement brings together the cutting-edge capabilities of the three companies and lays the groundwork for new growth in advanced semiconductor packaging.”

Sumitomo Chemical Chairman Keiichi Iwata said the partnership would “create significant synergy in the advanced semiconductor post-processing sector” and help build a “long-term strategic alliance.”

Samsung Electro-Mechanics is currently producing glass package substrate prototypes at its Sejong facility and expects full-scale production through the new venture to begin after 2027.

* This article, published by Economic Daily, was translated by AI and edited by AJP.

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