Sumitomo Chemical India shares surged nearly 10% on Friday, July 3, marking their biggest single-day gain since September 2024. Over 9.5 million shares changed hands as of 2:10 pm, nearly 27 times the average volume in the last 10 days, making it one of the most active stocks in trade today.
The stock surged after its Japanese parent Sumitomo Chemical announced a strategic joint venture with Samsung Electro-Mechanics to develop next-generation glass core substrates for advanced semiconductor packaging.
JV to develop next-generation semiconductor technology
Japan's Sumitomo Chemical said its wholly owned South Korean subsidiary, Dongwoo Fine-Chem, has signed an agreement with Samsung Electro-Mechanics to establish a joint venture to manufacture glass-core substrates for advanced semiconductor packages. The new company is expected to be incorporated in 2026, subject to regulatory approvals.
Glass core substrates are emerging as a key technology for advanced semiconductor packaging. They offer superior rigidity, dimensional stability, lower thermal expansion and reduced warpage, making them well-suited for increasingly powerful AI chips, high-performance computing and data centre applications.
Commercial supply targeted for FY28
The joint venture will combine Dongwoo Fine-Chem's expertise in glass processing and manufacturing with Samsung Electro-Mechanics' capabilities in semiconductor substrate design and large-scale production.
The partners aim to establish a commercial supply system by the second half of fiscal 2027, after which the venture plans to gradually expand manufacturing capacity for glass core substrates.
Part of Sumitomo Chemical's semiconductor growth strategy
The announcement aligns with Sumitomo Chemical's strategy to expand its semiconductor materials business, with ICT-related businesses identified as a key long-term growth driver, stated press release.
The group has been strengthening both its front-end semiconductor materials portfolio, including photoresists and specialty chemicals, and its back-end business through investments in advanced package materials, substrate materials and next-generation process technologies.
India-Japan semiconductor partnership gains momentum
The announcement also comes amid strengthening semiconductor cooperation between India and Japan. During the recentSumitomo Chemical India the Ministry of External Affairs (MEA) highlighted that Sumitomo Chemical and Tata Electronics are collaborating on the local manufacturing of semiconductor materials.
The MEA also said more than 120 business-to-business agreements, representing aggregate investment commitments of around $10 billion, have been signed since the previous India-Japan Summit, underscoring deepening economic and technology ties between the two countries.
Stock still below 52-week high
Despite Friday's sharp rally, Sumitomo Chemical India shares remain down about 11% over the past month and trade nearly 27% below their 52-week high of ₹665. However, the stock is still more than 33% above its 52-week low of ₹362.60.
Shares of Sumitomo Chemical India were trading at ₹483.35, up 9.55%, at around 12 noon on Friday.