On March 9, Samsung Electronics is making strategic moves in semiconductor technology and business restructuring, with developments in next-generation packaging materials and an internal review of its chip design and foundry operations.

Samsung Develops Glass Interposers to Enhance Semiconductor Packaging

According to a report from Business Korea, Samsung Electronics' Device Solutions (DS) division has started developing "glass interposers"—an advanced packaging material aimed at replacing costly silicon interposers and improving chip performance. Meanwhile, Samsung Electro-Mechanics is working on “glass substrates,” setting up an internal competition to enhance semiconductor productivity within the Samsung Group.

Industry sources indicate that Samsung Electronics recently received a proposal from materials supplier Chemtronics and equipment manufacturer Philoptics for glass interposer development. The company is also exploring the use of Corning's glass and may delegate production to these firms.

Glass substrates, under development by Samsung Electro-Mechanics, are expected to enter mass production by 2027. Unlike plastic substrates, glass substrates help mitigate warping issues, making them a more reliable alternative. Samsung Electro-Mechanics aims to establish itself in the glass substrate supply chain, while Samsung Electronics views glass interposers as a key component in strengthening its semiconductor packaging capabilities.

Samsung Considers Major Chip Business Restructuring

At the same time, Samsung is reviewing its chip design and foundry businesses, potentially leading to executive reshuffles and workforce reallocations, according to ijiwei, citing The Korean Economic Daily.

This marks the first major internal audit since the formation of Samsung's Management Diagnosis Office in November 2024. The review began with an evaluation of the System LSI division, responsible for chip design, in January. Once completed, scrutiny is expected to extend to Samsung's foundry operations.

Significant changes may be on the horizon for the System LSI division, with reports suggesting that Samsung is considering moving its Exynos system-on-chip (SoC) business to the Mobile eXperience (MX) division for better integration with its smartphone strategy.

Regarding its foundry business, Samsung is assessing whether to halt further investment in its semiconductor plants in Pyeongtaek, South Korea, and Taylor, Texas. The $37 billion Taylor facility, initially scheduled to begin production earlier, has already been delayed until 2026. With TSMC recently announcing a $100 billion expansion plan in the U.S., analysts are questioning whether Samsung can secure enough major clients to justify its investments.

Samsung Foundry, despite being the second-largest in the industry, holds only a 9.3% market share, significantly lagging behind TSMC's dominant 65%, according to TrendForce. The division reported an operating loss exceeding 2 trillion won ($1.4 billion) in Q4 2024, raising further concerns about its competitiveness in the global semiconductor landscape.

As Samsung pushes forward with technological advancements like glass interposers while re-evaluating its business strategies, the coming months could bring significant shifts in the company's semiconductor roadmap.