Samsung Electro-Mechanics is moving to secure an early lead in the glass substrate market for next-generation semiconductor packaging materials. Samsung Electro-Mechanics said on July 2 it signed a definitive agreement to establish a joint venture with Dongwoo Fine-Chem, a wholly owned subsidiary of Japan's Sumitomo Chemical Group, to produce the key glass substrate material known as glass core. The new joint venture will be named GlaSSEM.

GlaSSEM is named after the initial letters of Glass, Samsung, Sumitomo and Electronic Materials. The investment size is about 480 billion won, with Samsung Electro-Mechanics holding 66 percent and Dongwoo Fine-Chem 34 percent. Its headquarters and production facilities will be located at Dongwoo Fine-Chem's Pyeongtaek site in Pyeongtaek, Gyeonggi Province.

The two companies plan to complete the establishment of the company within this year after taking necessary steps following the signing of the definitive agreement. The joint venture's glass core is a key material used in glass substrates for semiconductor boards. Compared with existing plastic substrates, glass substrates undergo less heat-induced deformation and have a flatter surface, making them advantageous for producing large and precise semiconductor packages.

For these reasons, glass substrates are considered a next-generation semiconductor packaging technology. Samsung Electro-Mechanics plans to secure a stable manufacturing and supply base for glass core through the joint venture. It aims to accelerate the commercialisation of glass substrates by combining Samsung Electro-Mechanics' semiconductor substrate design and manufacturing technology, Sumitomo Chemical Group's materials technology and Dongwoo Fine-Chem's production infrastructure. The joint venture will begin operations in the second half of 2027 to meet glass substrate demand from global big tech companies.

Samsung Electro-Mechanics CEO Deokhyeon Jang (장덕현) said, "The establishment of this joint venture is a strategic choice to proactively secure core competitiveness in glass core," and added, "We will maximise synergy between the two companies to lead the paradigm of the next-generation semiconductor substrate market."

Sumitomo Chemical Group Chairman Keiichi Iwata (이와타 케이이치) said, "This cooperation will serve as an opportunity to further enhance the competitiveness of both companies in the field of advanced semiconductor materials," and added, "We will continue our long-term partnership through ongoing technological cooperation."