Samsung and SK Hynix Make Major Investments in Glass Substrates for AI Chips

SK Group’s affiliate, Absolics, plans to mass-produce glass substrates. Their Georgia plant will have a production capacity of 12,000 square meters, with discussions ongoing for a second plant.

Introduction

IIn a strategic move aimed at advancing semiconductor technology, Samsung and SK Hynix have made substantial investments in Glass Substrates signaling a significant shift in the landscape of AI chip manufacturing.

Glass Substrates: Both companies are exploring glass substrates as the next-generation technology for chip substrates. Compared to plastic substrates, glass offers advantages like a smoother surface, no need for an interposer, and improved performance.

SK Group’s Efforts:

  • Absolics: SK Group’s affiliate, Absolics, plans to mass-produce glass substrates. Their Georgia plant will have a production capacity of 12,000 square meters, with discussions ongoing for a second plant.
  • US CHIPS and Science Act: Absolics will receive a $75 million subsidy under the US CHIPS and Science Act.

Samsung’s Initiatives:

  • Samsung has formed a coalition to develop and commercialize glass substrates, aiming for mass production by 2026.

US Government Funding:

The US government’s funding of an SK Hynix affiliate’s glass substrate development impacts the competition between Samsung and SK Hynix.

    These investments underscore their commitment to enhancing performance and efficiency in next-generation artificial intelligence applications. As the demand for more powerful and energy-efficient AI chips grows, the adoption of glass substrates represents a pivotal advancement in semiconductor manufacturing.

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    Why Glass?

    Traditionally, chipmakers have relied on plastic substrates. However, glass offers significant advantages:

    Smoother Surface: Glass substrates boast a smoother surface compared to plastic, enabling faster data transfer and improved chip performance.

    No Interposer Needed: Conventional chips require an interposer, a layer connecting the chip to the substrate. Glass substrates eliminate this need, leading to a thinner design.

    Faster Processing & Lower Power Consumption: The thinner profile of glass substrates translates to a 40% boost in processing speed and a 30% reduction in power consumption for AI chips.

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    Korean Companies Take the Lead

    South Korean conglomerates Samsung and SK Group are at the forefront of glass substrates development.

    SK Group’s Absolics: Established in 2021 with Applied Materials, Absolics is poised to be an early leader in mass production. Their first plant in the US is nearing completion and is expected to start production in the first half of 2025.

    Samsung Electro-Mechanics: Samsung is also aggressively pursuing glass substrate technology, targeting mass production by 2026.

    Global Tech Giants Join the Fray

    The potential of glass substrates is attracting major players worldwide:

    • Intel: Intel has announced a roadmap to adopt glass substrates around 2028, with a $1 billion investment planned.
    • AMD & Nvidia: These chipmakers are also eyeing glass substrates for potential use as early as 2026.
    • Corning: A leader in glass technology, Corning is leveraging its expertise to expand its presence in the glass substrate market.

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    The Promise of Glass Substrates

    Traditional plastic substrates, once dominant in semiconductor manufacturing, are now being surpassed by glass substrates. Glass offers smoother surfaces and eliminates the need for interposers in chip mounting.

    This advancement promises a potential 40% increase in processing speeds and up to 30% reduction in power consumption. This leap in efficiency is crucial for meeting the demands of next-generation AI applications.

    SK Group’s Advances in Glass Substrates

    SK Group, through its subsidiary Absolics, a leader in advanced packaging solutions under SKC, is spearheading innovation in glass substrates. Teaming up with Applied Materials, Absolics plans to start mass production by the first half of 2025. Their new $300 million facility in Covington, Georgia, backed by a $75 million subsidy from the US CHIPS and Science Act, highlights their dedication to pioneering this transformative technology.

    Samsung’s Strategic Foray

    Samsung Electronics is not far behind, with Chairman Lee Jae-yong recently visiting Samsung Electro-Mechanics to oversee plans for entering the glass substrate market by 2026. This strategic move aligns with Samsung’s vision to enhance its semiconductor capabilities and solidify its position as a global leader in advanced chip manufacturing.

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    LG Innotek and Emerging Competitors

    LG Innotek, part of LG Group, is also eyeing entry into the glass substrate arena, driven by strong interest from major US chip firms. The competitive landscape is intensifying with global players like Intel, AMD, and Nvidia also gearing up to integrate glass substrates into their chip designs in the coming years.

    Global Implications and Market Growth

    Beyond South Korea, global tech giants are ramping up investments in glass substrates to meet the escalating demands of AI and high-performance computing. Intel’s $1 billion investment plan and the strategic roadmaps of AMD and Nvidia underscore the technology’s global significance. Corning Korea and Ibiden in Japan are also aggressively expanding their presence, highlighting the competitive dynamics shaping the future of semiconductor manufacturing.

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    Importance of Glass Substrates

    The adoption of glass substrates marks a monumental shift in semiconductor technology, crucial for AI applications. These substrates enhance performance metrics by enabling faster data processing and reducing power consumption. Improved chip efficiency promises more advanced and energy-efficient AI-driven devices. This technological leap is set to accelerate innovation in industries like autonomous vehicles and healthcare diagnostics, where robust computing capabilities are essential.

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    Market Projections

    According to industry forecasts by Marketsandmarkets, the global glass substrate market is expected to grow steadily, reaching $8.4 billion by 2028.

    This growth trajectory underscores the increasing demand for advanced semiconductor solutions capable of supporting the rapid evolution of AI technologies.

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    Conclusion

    As Samsung, SK Group, and other global leaders advance in glass substrates development, the semiconductor industry faces transformative change. These innovations aim to boost computing capabilities and efficiencies, reshaping AI and high-performance computing. The adoption of glass substrates signifies a critical step towards redefining global technological leadership in semiconductor technology.

    Kumar Priyadarshi
    Kumar Priyadarshi

    Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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