Samsung Electro-Mechanics has partnered with Dongwoo Fine-Chem, a subsidiary of Japan's Sumitomo Chemical, to seize the lead in the glass core market, a key component of next-generation semiconductor packaging. The company will invest a total of 319.1 billion won to establish a joint venture and secure a majority stake.

Investment Scale and Shareholding Structure Samsung Electro-Mechanics announced on the 2nd that it held a board meeting and resolved to jointly establish a tentative entity named 'Glasem Inc.' with Dongwoo Fine-Chem, acquiring 63.82 million shares for 319.1 billion won. The scheduled date for acquisition and capital contribution payment is September 1, 2026.

This investment amounts to 3.3% of Samsung Electro-Mechanics' equity (9,797,343,882,863 won). Upon completion of the stake acquisition, Samsung Electro-Mechanics will hold 66.2% (63.82 million shares) of Glasem.

Capital Contribution Method and Business Purpose Glasem is a newly established joint venture created in partnership with Dongwoo Fine-Chem, and will primarily engage in the manufacture and sale of glass substrates. Samsung Electro-Mechanics will combine cash and in-kind contributions, executing 239.1 billion won in cash contributions and 80 billion won in in-kind contributions.

• *Call and Put Options to Address Potential Deadlock**
• The two companies have entered into call option and put option agreements related to the joint venture. These are provisions in case a deadlock arises five years after the joint venture's establishment and no agreement is reached during the consultation period to resolve it.
• Samsung Electro-Mechanics (Call Option): May demand that Dongwoo Fine-Chem sell all of its shares at 120% of the valuation price determined by an accounting firm.
• Dongwoo Fine-Chem (Put Option): Under the same conditions, may demand that Samsung Electro-Mechanics purchase all of its shares at 80% of the valuation price determined by an accounting firm.

Regulatory and Disclosure Matters Samsung Electro-Mechanics explained that this transaction does not fall under the requirement to submit a report on major asset acquisition matters, and that the acquisition amount represents approximately 2.2% of its total assets as of the end of the most recent fiscal year.