Glass Substrate Samples to Be Supplied Within the Year
On Chairman Lee Jae-yong's 'Fight to the Death' Order: "Timely"
Jang Deok-hyun, CEO of Samsung Electro-Mechanics, said on the 19th regarding glass substrates, known as the 'game changer' in the semiconductor industry, "Samsung Electronics is also one of our customers, and we are in discussions for cooperation with companies handling AI servers in the United States."
After the 52nd regular shareholders' meeting held in Yangjae-dong, Seocho-gu, Seoul, Jang told reporters, "Since our company has experience with glass substrates, we are technically cooperating with several affiliates, including Samsung Electronics' DS division."
Glass substrates are semiconductor package substrates made by replacing the existing plastic material with glass. They are thin and have a smooth surface, minimizing circuit distortion. In particular, they have attracted industry attention for improving data speed and power consumption in semiconductor packages.
Samsung Electro-Mechanics officially announced its entry into the glass substrate business as one of its new businesses at CES last year. From the second quarter of this year, it plans to operate a pilot line at its Sejong plant and conduct sampling for AI server customers within this year. Some analysts have suggested that with Samsung Electronics recently starting development of glass interposers, materials that facilitate smooth connections between substrates and chips for semiconductors, a competitive structure between Samsung Electronics and Samsung Electro-Mechanics could emerge.
Regarding this, CEO Jang explained, "There is a story that we only do glass substrates and not glass interposers, but that is not true," adding, "Samsung Electronics is also working on interposers." He further said, "Since many customers are considering glass interposers, we are currently jointly developing them with our customers."
The 'technical cooperation with several affiliates' that CEO Jang mentioned that day is interpreted as indicating that cooperation with Samsung Electronics is taking place not only in glass substrates but also in glass interposers.
Regarding Samsung Electronics Chairman Lee Jae-yong's orders of being a 'tough Samsung person' and 'fight to the death,' Jang said, "Due to increased uncertainty from U.S. tariff policies and U.S.-China conflicts, and fierce competition, I think his words that 'if you are not tough, you will die' were timely," adding, "I believe everyone from new employees to CEOs should take this to heart."
Chairman Lee recently criticized Samsung executives at a seminar, saying, "We have lost the resilience that is Samsung," and urged, "It is time for management to thoroughly reflect and act boldly with the resolve of 'fight to the death'."
Meanwhile, at the shareholders' meeting that day, all agenda items, including approval of financial statements, appointment of inside and outside directors, and approval of director remuneration limits, were passed as originally proposed. Outside director Lee Yoon-jung was appointed, and CEO Jang and Kim Sung-jin, Vice President and Head of the Management Support Office, were reappointed as inside directors.
At the shareholders' meeting, CEO Jang stated, "By 2025, we will achieve sales of 2 trillion won in future growth businesses such as automotive electronics and AI/server products," adding, "We will strengthen high value-added product groups by main business sectors and promote customer diversification to establish a system for sustainable growth."
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