With the widespread application of artificial intelligence (AI), one industry is becoming increasingly sought after: glass substrates.

Major component manufacturers are flocking to the commercialization of glass substrates.

The old semiconductor substrates

Historically, semiconductor substrates were typically made of plastic. However, in recent years, glass substrates have replaced plastic, making them less prone to deformation even at high temperatures and enabling denser circuitry, thus improving performance. Glass substrates are considered a key material for next-generation artificial intelligence (AI) substrates, capable of handling massive amounts of data.

As major tech companies embark on developing their own AI accelerators, striving to surpass Nvidia, which dominates the AI chip market, this presents an opportunity for South Korean companies. Products from South Korean companies are expected to be commercialized in 2027 or 2028. Data from market research firm Mordor Intelligence shows that the global glass substrate market is worth $7.42 billion (approximately 10.9 trillion won) this year and is projected to grow to $9.01 billion (approximately 13.2 trillion won) by 2031.

Partnering with major technology companies to prepare for mass production

In South Korea, major corporations are collaborating with large technology companies. Samsung Electro-Mechanics is reportedly supplying glass substrate samples to several major technology companies, including Broadcom and AMD. 

LG Innotek is collaborating with major technology companies to develop glass substrates, while SKC's glass substrate subsidiary, Absolix, is currently testing with global IT companies.

Mass production is also accelerating. SKC is building a factory in Covington, Georgia, through its subsidiary Absolix, and preparing for mass production. SKC plans to allocate 60% of its recent capital increase (approximately 590 billion won) to Absolix's product development. Samsung Electro-Mechanics plans to establish a joint venture with Japan's Sumitomo Chemical Group in the first half of this year to produce "glass cores," a key material for glass substrates, and to establish a large-scale production system as soon as possible. The joint venture will be headquartered at Dongwoo Fine Chemicals' Pyeongtaek plant, a subsidiary of Sumitomo Chemical, and is expected to serve as the initial production base for glass cores.

South Korean component manufacturers are also joining the supply chain, accelerating glass substrate development. JWMT, invested in by Samsung Electronics, possesses TGV (Through-Glass Via) technology. 

TGV is a key process that creates data exchange channels by drilling vertical holes in a glass substrate. The company possesses advanced technology for drilling micro-holes in fragile glass. Extol, also invested in by Samsung Electro-Mechanics, is advancing its glass substrate electroplating technology. Unlike plastics, glass has a smooth surface that is difficult to electroplat, but this technology allows electrical signals to be transmitted by filling the TGV holes with copper.

Is it possible to get rid of Nvidia graphics cards?

Competition in the glass substrate market is intensifying, driven by the entry of Chinese companies. Among them, Chinese display manufacturer BOE is one of the most active players. BOE is reportedly operating a pilot production line and has achieved initial success with its TGV technology.

The company is particularly focused on artificial intelligence (AI) chips and plans to begin mass production as early as this year. Other Chinese companies such as Visionox, AKM Midville, and Yuntian Semiconductor are also actively developing glass substrates and establishing supply chains.

The tech industry views the "de-Nvidia" movement as a catalyst for intensified competition in the glass substrate market. Nvidia currently dominates the high-performance AI chip market. Newcomers like AMD, Broadcom, and Intel need to achieve new breakthroughs to surpass Nvidia, and these breakthroughs lie in the glass substrate field.

The plan aims to break Nvidia's current monopoly by significantly improving the performance of AI chips through the use of glass substrates. A semiconductor industry insider stated, "Korean companies that are not currently part of Nvidia's AI chip supply chain will also be able to leverage glass substrates to explore new markets."

Source: Compiled from zdnet

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