Samsung Electro-Mechanics Signs MOU with Sumitomo Chemical Group to Establish a Joint Venture for 'Glass Core' Used in Package Substrates

Core Insights - Samsung Electro-Mechanics and Sumitomo Chemical Group have signed a memorandum of understanding (MOU) to establish a joint venture for manufacturing 'Glass Core,' a crucial material for next-generation semiconductor package substrates [1][4] - The joint venture aims to address the limitations of current package substrate technology, particularly in the context of advancements in artificial intelligence (AI) and high-performance computing (HPC) [3][4] - The headquarters for the joint venture will be located at Dongwoo Fine-Chem's Pyeongtaek site, which will also serve as the initial production base for 'Glass Core' [4] Company Strategies - Samsung Electro-Mechanics will be the primary investor with a majority stake in the joint venture, while Sumitomo Chemical Group will hold a minority stake [4] - The companies plan to finalize details such as shareholding structure and business schedule, with the main agreement expected to be signed next year [4] - The collaboration is seen as a strategic move to combine technological strengths and accelerate market expansion in the advanced semiconductor packaging sector [4] Market Implications - The demand for ultra-high-performance semiconductor package substrates is anticipated to grow significantly as the AI era progresses, positioning 'Glass Core' as a key material in reshaping the substrate market [4] - The partnership is expected to generate significant synergies in the advanced semiconductor back-end process sector, enhancing the long-term relationship between the companies [4] - Samsung Electro-Mechanics is currently producing glass package substrate prototypes, with mass production planned to commence after 2027 [4]