On October 20, 2025, Samsung Electro-Mechanics (SEMCO, KRX: 009150) is reportedly pushing to establish a joint venture to expand its glass substrate business and has selected Chemtronics (KRX: 089010) as its strategic partner, according to industry sources on October 20. However, concerns are emerging that Chemtronics' limited financial capacity could delay the investment timeline.

The planned joint venture — estimated at around KRW 200 billion (approximately USD140 million or CNY 1 billion) — aims to strengthen SEMCO' position in the semiconductor advanced packaging sector, particularly in glass substrates, which are drawing growing attention as a next-generation platform for high-density packaging.

Glass substrates are considered a key enabler for advanced semiconductor packaging, offering superior flatness, thermal stability, and signal integrity. Globally, Absolics — a subsidiary of SKC — currently leads the field, with U.S. and Taiwanese players ramping up investments. Industry analysts say SEMCO is now accelerating efforts to close the technology gap and enhance its back-end competitiveness.

The main challenge, however, lies in funding. Establishing the joint venture requires at least KRW 100 billion in capital contribution, which Chemtronics reportedly cannot fully secure through internal resources. To address this, the company has begun talks with private equity funds (PEFs) and venture capital (VC) investors to raise financing. Yet, given market skepticism about the commercial timeline of glass substrates, fundraising progress has been slow.

SEMCO' decision to partner with Chemtronics stems from the latter's manufacturing integration and process expertise. Chemtronics possesses key Through Glass Via (TGV) technology — a core process in glass substrate packaging — and operates one of the few end-to-end production lines in Korea, covering laser drilling, wet etching, AOI inspection, and CMP.

The company's deep experience in precision etching for display panels and long-standing collaboration with Samsung affiliates also give it an edge. For SEMCO, teaming up with a domestic partner that combines technological capability and production infrastructure helps minimize execution risk in the new venture.

Under the proposed structure, SEMCO would hold a controlling 50% plus one share, while Chemtronics would own the remainder. If the deal proceeds, it would mark Samsung Electro-Mechanics' full-scale entry into Korea's glass substrate market, currently dominated by SKC and its subsidiary Absolics — potentially reshaping the competitive landscape.

For SEMCO, the partnership represents a strategic opportunity to share early-stage investment risk while enhancing its back-end competitiveness. For Chemtronics, it could become a pivotal moment to advance into the semiconductor packaging business.

However, the timeline for the JV could face delays if Chemtronics fails to secure the necessary funds in time. The company's financial condition and fundraising pace are seen as the biggest variables affecting the project.

Meanwhile, Soulbrain (KRX: 357780) has also been mentioned as a potential candidate, leveraging its expertise in precision chemical materials and etching solutions. The company already supplies etching solutions for Samsung Display's OLED production, earning credibility in glass-related processes.

An investment banking source noted,"Chemtronics has approached multiple financial investors, but few are ready to commit amid uncertain market prospects. Still, the fact that the project involves SEMCO — a top-tier corporate partner — could help mitigate perceived risks for investors."