Samsung Electro-Mechanics is encountering obstacles in its glass substrate project, as a crucial customer certification failure has led to further postponement of equipment procurement schedules. The timeline for mass production has now been shifted from the original target of the second half of 2027 to after 2028.

According to a report from the South Korean tech media outlet The Elec, GlaSSEM, a joint venture between Samsung Electro-Mechanics and Dongwoo Fine-Chem, is currently unable to provide a definitive procurement timeline to its equipment suppliers. Citing sources familiar with the matter, the report indicates that while the market generally expected orders to be placed by the end of July, it is now impossible to even determine a rough start date, causing the construction of the production line to stall.

The core reason for the project delay is that Samsung Electro-Mechanics failed to pass a glass substrate sample reliability certification from a global semiconductor client in the communications sector. Due to this certification failure, the company must re-manufacture samples and submit them for re-evaluation, which will in turn delay the original investment plans.

Equipment Procurement Faces Continuous Delays, Start Date Remains Unclear

Samsung Electro-Mechanics began communicating its equipment procurement plan for the GlaSSEM production line to suppliers last November. However, the procurement timeline has been postponed three times, shifting from December of last year to March of this year, and then again to June. After June, the company has stopped providing new timeline milestones to its suppliers.

Previously, equipment suppliers generally expected procurement to start in August. According to the original plan, Samsung Electro-Mechanics was to begin with the purchase of coating equipment, which has the longest delivery lead time. Major process equipment was scheduled to arrive at Dongwoo Fine-Chem's Pyeongtaek plant by April next year, with the initial production line to be completed in the second quarter of next year.

Currently, suppliers for key equipment such as deposition machines, etchers, laser drilling machines, and inspection equipment have largely been confirmed. However, there is still no clear answer on when formal procurement will commence. Samsung Electro-Mechanics had even considered placing orders in its own name initially, before transferring the contracts to GlaSSEM.

Reliability Certification Emerges as Key Bottleneck

Samsung Electro-Mechanics is still producing glass substrate samples at its Sejong plant, with the project in a trial production phase. Because re-manufacturing samples and completing the certification process takes time, there is significant uncertainty about whether equipment investment can begin within the year.

Even if procurement can be initiated this year, considering the equipment manufacturing and installation cycles, the production line would be built no earlier than the second half of next year. As a result, the timeline for mass production is now expected to be pushed back to after 2028.

Samsung Electro-Mechanics had previously set the second half of 2027 as the target for GlaSSEM's production launch. However, during its second-quarter earnings conference call, the company adjusted this target to 2028.

Glass substrates are considered an important material for next-generation advanced packaging, offering higher flatness and superior signal transmission performance. The successive delays in Samsung Electro-Mechanics' project highlight the significant technical and customer certification hurdles that still exist in moving glass substrates from sample validation to mass production. This also implies that the commercialization of its advanced packaging substrate business will be further slowed down.