Samsung Electro-Mechanics is accelerating its push into the next-generation glass substrate market, establishing a joint venture with Dongwoo Fine-Chem to manufacture one of the technology's most critical materials as demand for AI semiconductors continues to surge.
According to industry sources on Wednesday, Samsung Electro-Mechanics signed a definitive agreement with Dongwoo Fine-Chem to establish a joint venture dedicated to producing Glass Core, a key material used in semiconductor glass substrates.
The new company, tentatively named GlaSSEM, combines the words Glass, Samsung, Sumitomo, Electronic, and Materials, reflecting the partners' ambition to become a global leader in advanced glass materials for semiconductor packaging.
The two companies will invest approximately KRW 480 billion (about US$350 million) in the venture. Samsung Electro-Mechanics will hold a 66% stake, while Dongwoo Fine-Chem will own the remaining 34%. The joint venture's headquarters and manufacturing facilities will be located at Dongwoo Fine-Chem's production complex in Pyeongtaek, Gyeonggi Province. The partners plan to complete the legal establishment of the company later this year before beginning construction of production facilities.
The joint venture will focus on manufacturing Glass Core, a critical component for glass substrates, which are widely regarded as one of the most promising technologies for next-generation semiconductor packaging.
Compared with conventional organic substrates, glass substrates offer significantly lower thermal expansion and superior flatness, enabling finer circuit patterns and larger semiconductor packages. These advantages make them particularly well suited for AI servers and high-performance computing (HPC) chips that require greater processing power and higher packaging density.
As AI processors become increasingly powerful, semiconductor packages are growing larger and more complex, driving demand for substrates with greater dimensional stability and manufacturing precision. Industry experts view glass substrates as a potential game-changing technology capable of overcoming the limitations of existing organic materials.
Through the joint venture, Samsung Electro-Mechanics expects to establish a stable in-house supply chain for one of the most critical glass substrate materials, reducing its dependence on external suppliers while improving cost competitiveness and supply security. The integrated production system is also expected to shorten development cycles and enable faster responses to customer requirements.
The partnership brings together complementary strengths from both companies. Samsung Electro-Mechanics will contribute its expertise in semiconductor package substrate design and manufacturing, while Sumitomo Chemical Group will provide advanced materials technologies. Dongwoo Fine-Chem will leverage its manufacturing infrastructure and production know-how to accelerate commercialization.
The joint venture plans to gradually install production facilities, stabilize manufacturing processes and complete customer qualification procedures before commencing mass production in the second half of 2027.
By securing a dedicated supply of Glass Core materials, Samsung Electro-Mechanics aims to respond proactively to growing demand for glass substrates from global technology companies developing AI semiconductors and next-generation data center solutions.
