Sumitomo Chemical Stock Surges on Glass Core Substrates Deal for AI Chip Packaging

Sumitomo Chemical shares soar 11%, record biggest single-day surge in nearly 2 years. Here's why

Sumitomo Chemical India shares surged around 11% as heavy volumes and a major development at its Japanese parent's Korean subsidiary lifted sentiment. Dongwoo Fine-Chem's joint venture with Samsung Electro-Mechanics for glass core substrates boosted optimism around next-generation semiconductor packaging demand. The stock hit a fresh high amid strong trading activity. The shares of Sumitomo Chemical India rallied sharply by around 11% on Friday, with the stock on track to record its biggest single-day surge since September 2024, following a key partnership by its parent company's Korean subsidiary and heavy trading volumes. The shares of the company, which is associated with agrochemicals, biopesticides, feed activities, household insecticides and animal nutrition sectors, soared to Rs 488.65 apiece on the NSE on Friday. Why are Sumitomo Chemical India shares up today?The sharp surge in Sumitomo Chemical India shares comes after its Japanese parent, Sumitomo Chemical, said that its Korean subsidiary, Dongwoo Fine-Chem, has signed a joint venture agreement with Samsung Electro-Mechanics to establish a joint venture company to engage in the business of glass core substrates for advanced semiconductor packages. "In recent years, driven by the growing adoption of generative AI, expanding data centre investments, and rising demand for high-performance computing, semiconductors have been required to achieve even greater integration and lower power consumption. As a result, semiconductor package substrates are also needed to support further increases in size and density. This has led to glass core substrates garnering attention as a technology that supports next-generation semiconductor packages," the company said in a press release. Also read: Gujarat accelerates semiconductor ambitions as Sumitomo Chemical weighs deeper investment Glass core substrates are next-generation semiconductor package substrates which are characterised by excellent rigidity, dimensional stability, low warpage and low thermal expansion, which contribute to larger package sizes, improved reliability and higher-density wiring, the company said. "In particular, AI-related semiconductors are expected to see even greater package enlargement and higher density going forward, and glass core substrates, which are a promising option well suited to these requirements, are expected to experience a full-scale market launch," it added. Sumitomo Chemical said that the new company to be developed as part of the joint venture is scheduled to establish a supply system by the second half of the fiscal year 2027 with a share capital of KRW 482,100 million. Sumitomo Chemical India stock performance The sharp surge in Sumitomo Chemical India's share price also comes amid heavy volumes. More than 123 lakh shares of the company worth around Rs 589 crore have already been traded, as per data on the NSE at 12.45 pm. The stock has gained around 10% over the past week but is down nearly 1% over the past month. It is up about 2% so far in 2026. Over the longer term, it has fallen 9% in the past year, while rising 10% over three years and 24% over five years. The company's current market capitalisation is nearly Rs 23,747 crore. Also read: Hitachi Energy, GE Vernova, Siemens Energy, other power equipment stocks crash up to 10%. Here's why (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Why is Sumitomo Chemical stock surging today? By Investing.com

Investing.com -- Sumitomo Chemical stock surged 7.1% to reach ¥558.8 after its wholly owned Korean subsidiary, Dongwoo Fine-Chem, signed a definitive agreement to establish a joint venture with Samsung Electro-Mechanics for the production of glass core substrates -- a key material powering the next generation of advanced AI chip packaging. The venture, tentatively named GlaSSEM, carries a total investment of approximately 480 billion won, with Samsung Electro-Mechanics holding a 66% majority stake and Dongwoo Fine-Chem retaining the remaining 34%. The new company is expected to be formally incorporated by the end of 2026, with full-scale production operations targeted for the second half of 2027. Glass core substrates are widely regarded as a transformative technology in semiconductor packaging, offering superior thermal stability and flatness compared to conventional organic substrates -- properties that are increasingly critical as AI and high-performance computing chips grow in size and density. Sumitomo Chemical Chairman Keiichi Iwata stated that the cooperation would "serve as an opportunity to further enhance the competitiveness of both companies in the field of advanced semiconductor materials." Adding further fuel to today's rally, Mizuho Securities upgraded its investment rating on Sumitomo Chemical from "Neutral" to "Buy" and raised its price target from ¥620 to ¥720, arguing that the stock had reached an undervalued level relative to its semiconductor materials growth trajectory and ongoing structural reform progress. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.