With the global surge in artificial intelligence (AI) prompting major tech companies like Apple to consider incorporating next-generation glass substrates in semiconductor processes, South Korean conglomerates including SKC, Samsung Electro-Mechanics, and LG Innotek have joined the fray, heralding a significant shift in the industry.

According to industry sources on April 7, as the competition for high-performance AI semiconductors intensifies, global semiconductor corporations such as Intel, Nvidia, and AMD are expected to adopt glass substrates as early as 2026, thanks to technological advancements.

Lee Chang-min, a research analyst at KB Securities, predicted, “As the amount of AI data processing exponentially increases, by 2030, organic (plastic) material substrates will become inadequate. Initially employed in high-quality products like AI accelerators and server central processing units, the adoption of glass substrates is expected to gradually expand to a wider range of products.”

Glass substrates, which utilize glass instead of traditional plastic materials, allow for the formation of finer circuits due to their rigidity and are advantageous for large-scale applications due to their resistance to heat and bending. They also offer benefits in terms of electrical signal loss and speed. Directly embedding passive components such as Multi-Layer Ceramic Capacitors (MLCCs) into the glass enables the integration of more transistors. The semiconductor industry anticipates that adopting glass substrates in semiconductor processes could significantly advance semiconductor microfabrication technology by two generations or more.

Intel, which announced its entry into the glass substrate business in May last year, has been actively preparing for the application of glass substrates through collaboration with some domestic semiconductor equipment companies. SKC was the first in South Korea to dive into the glass substrate business. In partnership with Applied Materials (AMAT), the world’s largest semiconductor equipment company, SKC established Absolics and invested US$240 million to build a glass substrate manufacturing plant in Georgia. This plant is expected to begin production in the second and fourth quarters of this year.

Domestic component powerhouses Samsung Electro-Mechanics and LG Innotek have also marked glass substrates as a new growth engine and have embarked on production investments.

Samsung Electro-Mechanics officially announced its entry into the glass substrate market at CES 2024 held in Las Vegas, Nevada, in the U.S. in January. The industry expects prototype production in 2025 and full-scale mass production to commence in 2026. There are also predictions that Samsung Group’s electronics affiliates will cooperate in glass substrate production, with Samsung Electro-Mechanics, Samsung Electronics, and Samsung Display respectively handling the research and development, manufacturing, and the combination of semiconductors and substrates, as well as the glass process.

LG Innotek, which is vigorously diversifying its business, including the expansion of its semiconductor substrate business, has also identified glass substrates as a key future revenue source.