Seoul: Samsung Electro-Mechanics Co. announced on Wednesday its plan to establish a joint venture with a Japanese partner to produce glass core for next-generation semiconductor package substrates. This venture aims to meet the increasing market demand for advanced semiconductor packaging substrates driven by the artificial intelligence (AI) industry.

According to Yonhap News Agency, the agreement was signed with Japan’s Sumitomo Chemical Group on Tuesday. Glass core is recognized for its lower thermal expansion and superior flatness compared to the existing organic core, making it a key material for next-generation semiconductor package substrates.

Under the terms of the agreement, Samsung, Sumitomo, and South Korea-based Dongwoo Fine-Chem Co. will leverage their technologies and global networks to produce glass core products. Dongwoo Fine-Chem is a wholly owned subsidiary of Sumitomo.

Samsung Electro-Mechanics will hold more than half of the stake in the joint venture. The parties involved plan to discuss further details, including the name and ownership structure, aiming to sign a formal agreement by next year.

The new company will be located at Dongwoo Fine-Chem’s production site in Pyeongtaek, approximately 65 kilometers south of Seoul. Chang Duck-hyun, CEO of Samsung Electro-Mechanics, stated that the agreement will serve as an opportunity to secure a new growth engine in the next-generation semiconductor packaging market by combining the cutting-edge capabilities of the three firms.