Establishment of JV with Samsung Electro-Mechanics for glass core substrates: Quick Note

Research evidence excerpt

Establishment of JV with Samsung Electro-Mechanics for glass core substrates: Quick Note

Global Markets Research

3 July 2026Sumitomo Chemical

4005.T 4005 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

Establishment of JV with Samsung Electro-Mechanics for Ratingglass core substrates Neutral

Target price JPY 590Quick Note

Closing price

2 July 2026 JPY 521.8Potential earnings contributions from FY30

After the close of trading on 2 July, Sumitomo Chemical announced that its wholly owned (Note: Quick Note reports are not a

South Korean subsidiary Dongwoo Fine-Chem will be establishing a joint venture with vehicle for changes to ratings, target

Samsung Electro-Mechanics to make glass core substrates for advanced semiconductor prices, or earnings forecasts)

packages. Glass core substrates offer advantages in terms of superior rigidity,

dimensional stability, low warpage, and low thermal expansion, and are expected to see

increased use as a next-generation semiconductor package substrate that can facilitate

larger package sizes and higher wiring density (relative to the current mainstream resin Research Analysts

substrates). The JV is planning to build a supply structure by FY27 H2, and we think it

Japan chemicals & textilescould make a full contribution to earnings from FY30 onwards. While we do not currently

Shigeki Okazaki - NSCenvision any major positive impact on companywide earnings, we will be keeping a close

shigeki.okazaki@nomura.com

eye on the company's strategies for growth businesses. +81 3 6703 1170

Leveraging expertise in touch sensors

The Samsung group has been developing glass core substrates. Sumitomo Chemical has

been selling glass-related materials such as touch sensors for displays to the Samsung