Recently, Intel, AMD, Samsung, LG Innotek, and SKC’s US subsidiary Absolics have all highly focused on glass substrate technology for advanced packaging. Due to its excellent performance, glass substrate technology has become a rising star in the field of advanced packaging.

In September 2023, Intel announced the so-called “next-generation advanced packaging glass substrate technology,” claiming it could revolutionize the entire chip packaging field. Glass substrate refers to the replacement of organic materials in organic packaging with glass, rather than replacing the entire substrate. Therefore, Intel will not mount chips on pure glass; instead, the core material of the substrate will be made of glass.

Intel stated that glass substrates could lay the foundation for achieving an astounding one trillion transistors on a single package within the next decade. Based on its promising prospect, rumors surface recently that Intel plans to mass-produce glass substrates as early as 2026. Intel has invested approximately a decade in glass substrate technology and currently has a fully integrated glass research line in Arizona, USA. The company stated that the production line costs over USD 1 billion and requires collaboration with equipment and material partners to establish a complete ecosystem. Currently, only a few companies in the industry can afford such an investment, and Intel seems to be the only company so far to successfully develop glass substrate.

Apart from Intel, SKC’s US subsidiary Absolics, AMD, and Samsung also see the broad development prospect of glass substrate.

In 2022, SKC’s US subsidiary Absolics invested around KRW 300 billion to establish the first factory dedicated to producing glass substrate in Covington, Georgia, USA. Recently, the company announced that the factory has been completed and has begun mass production of prototype products. Industry analysts believe this marks a critical moment for the global glass substrate market.

Samsung has formed an alliance composed of Samsung Electro-Mechanics, Samsung Electronics, and Samsung Display to develop glass substrate, aiming to start large-scale mass production in 2026 and commercialize the technology faster than Intel. It’s reported that Samsung Electro-Mechanics plans to install all necessary equipment on a pilot production line by September this year and commence operations in the fourth quarter.

AMD plans to launch glass substrate between 2025 and 2026 and to collaborate with global component companies to maintain its leading position. According to Korean media reports, AMD is conducting performance evaluation tests on glass substrate samples from several major global semiconductor substrate companies, intending to introduce this advanced substrate technology into semiconductor manufacturing.

Currently, with the emergence of new companies like SCHMID and the participation of laser equipment suppliers, display manufacturers, and chemical suppliers, the industry is gradually forming some new supply chains around glass core substrate, and create a diversified ecosystem.

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• [News] Samsung Bullish on Glass Substrate Applications, Setting Up Production Line for Mass Production Starting in 2026

(Photo credit: Intel)

As the market demand for AI chips keeps booming, two South Korean AI chip companies, Sapeon and Rebellions, are pursuing a merger to enhance their competitiveness. According to a report by the Korea Economic Daily, if everything proceeds as planned, the merger will result in the formation of Korea’s first semiconductor unicorn, with the new company’s corporate value amounting to 2 trillion won (USD 1.5 billion).

According to a report by Korean media outlet TheElec, the merger will be finalized within this year, following the signing of the deal in the third quarter.

TheElec stated that Sapeon Inc, headquartered in the US and the sole owner of Sapeon Korea, will be the largest shareholder of the merged entity. Post-merger, Sapeon Inc is expected to hold about 30% of the shares, with Rebellions’ CEO, Sunghyun Park, leading the new company.

Based on the reports, the alliance has been formed in order to win in the global AI chip market, while the two companies identify the next two to three years as a crucial window of opportunity.

Sources cited by TheElec indicated that Sapeon Korea is valued at 500 billion won, while Rebellion is valued at 880 billion won. Regarding details of the merger, during its Series A funding round, Sapeon issued convertible bonds to its investors instead of equity. Afterwards, these investors will receive shares in the merged entity.

It is worth noting that both Sapeon and Rebellion have been backed up by tech heavyweights. According to The Elec, South Korean telco SK Telecom, as Sapeon Inc’s largest shareholder, holds 62.5% of the company. On the other hand, memory giant SK hynix owns 25%, while SK Square holds 12.5%.

Meanwhile, according to the Korea Economic Daily, Rebellions is part of the telecom giant KT Corp.-led Korean “AI full stack” service providers, offering AI infrastructure including AI chips, cloud computing, and various applications.

The report by TheElec, citing industry sources, noted that since SK Group will be the majority shareholder of the merged entity, it may prefer TSMC over Samsung Foundry, given that SK hynix and Samsung are rivals in memory chips. For now, Sapeon uses TSMC as its foundry, whereas Rebellions collaborates with Samsung Foundry.

(Photo credit: Rebellions)

The global electric vehicle market has begun to show signs of saturation, affecting the battery supply chain. According to a report from Korean media Maeil Business, in response to the downturn in battery demand, South Korea’s SK Group holding company, SK Innovation, intends to sell its subsidiary SK IE Technology (SKIET) to raise funds and strengthen its financial position.

The report cited sources, indicating that SK Innovation is actively seeking investors for capital injection and has begun negotiations. Additionally, the possibility of selling its battery material subsidiary, SKIET, may not be ruled out as a consideration to obtain cash for flexible use, in response to the shrinking appetite in the battery market.

As per a report from MoneyDJ, SK Innovation holds a 61.2% stake in SKIET, valued at KRW 2.5 trillion (approximately USD 1.8 billion).

Industry sources further pointed out that SK Innovation’s decision to sell SKIET is primarily driven by the need for additional funds to expand its electric vehicle battery business under SK On, including the expansion of its battery factories in the United States, according to the aforementioned reports.

Reportedly, SK On anticipates capital expenditures of KRW 7.5 trillion this year. However, the sources believe that whether SK Innovation can find a buyer for SKIET remains to be seen, given SKIET’s poor performance.

SK On’s clients include well-known automakers such as Ford, Volkswagen, and Hyundai. However, in a high-interest-rate environment, global electric vehicle sales have stalled, leading SK On to incur a significant operating loss of KRW 332 billion in the first quarter, far exceeding the KRW 18.6 billion loss in the previous quarter.

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• [News] Chip to be the Game Changer in EV Market, Battery Becomes the Past

(Photo credit: SK Innovation)