The stock gained momentum following the announcement of a strategic joint venture between its Japanese parent company, Sumitomo Chemical, and Samsung Electro-Mechanics to develop next-generation glass core substrates for advanced semiconductor packaging.
JV to develop next-generation semiconductor technology
Japan’s Sumitomo Chemical reported that its wholly owned South Korean subsidiary, Dongwoo Fine-Chem, has signed a partnership agreement with Samsung Electro-Mechanics to form a joint venture focused on manufacturing glass-core substrates for advanced semiconductor packages. The establishment of the new company is projected for 2026, pending regulatory approvals.
Glass core substrates are recognized as an essential technology for advanced semiconductor packaging, providing superior rigidity, dimensional stability, lower thermal expansion, and minimized warpage—ideal for high-performance AI chips, computing, and data center applications.
Commercial supply targeted for FY28
The joint venture will leverage Dongwoo Fine-Chem’s glass processing and manufacturing expertise alongside Samsung Electro-Mechanics’ substrate design and mass production capabilities.
The partners aim to set up a commercial supply system by the latter half of fiscal 2027 and plan to gradually enhance the manufacturing capacity for glass core substrates.
Part of Sumitomo Chemical’s semiconductor growth strategy
This announcement aligns with Sumitomo Chemical’s goal to expand its semiconductor materials business, identifying ICT-related sectors as a major long-term growth driver, as per the press release.
The company is bolstering both its front-end semiconductor materials portfolio, encompassing photoresists and specialty chemicals, and its back-end operations with investments in advanced package materials, substrate materials, and cutting-edge process technologies.
India-Japan semiconductor partnership gains momentum
This announcement coincides with the strengthening of semiconductor collaboration between India and Japan. Recently, the Ministry of External Affairs (MEA) highlighted partnerships between Sumitomo Chemical and Tata Electronics for local semiconductor materials manufacturing.
The MEA noted that over 120 business-to-business agreements have been signed since the last India-Japan Summit, representing total investment commitments of about $10 billion, reflecting the deepening economic and technological connections between the two nations.
Stock still below 52-week high
Despite the significant rally on Friday, Sumitomo Chemical India’s shares have decreased approximately 11% over the past month and currently trade nearly 27% lower than their 52-week high of ₹665. However, the stock is still over 33% higher than its 52-week low of ₹362.60.
As of around noon on Friday, shares of Sumitomo Chemical India were priced at ₹483.35, reflecting a 9.55% increase.
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