Sumitomo Chemical India Soars 14% on Japan JV News
Sumitomo Chemical India shares hit a day high of Rs 502.45 on Friday, 3 July, its best session in nearly two years, on parent’s Japan JV news. Trading volumes told the real story here. Nearly 1.6 crore shares changed hands within the first few hours, more than 24 times the... The post Sumitomo Chemical India Soars 14% on Japan JV News appeared first on Equitypandit.
Sumitomo Chemical India shares hit a day high of Rs 502.45 on Friday, 3 July, its best session in nearly two years, on parent’s Japan JV news.
Trading volumes told the real story here. Nearly 1.6 crore shares changed hands within the first few hours, more than 24 times the stock’s usual daily volume.
That kind of surge usually means something significant has happened, and in this case it had.
Sumitomo Chemical, the Japan based parent, announced that its South Korean unit, Dongwoo Fine Chem, has signed an agreement with Samsung Electro Mechanics.
Together, the two firms plan to set up a joint venture to make glass core substrates, a newer type of material used inside advanced semiconductor chips.
These chips power everything from AI systems to high performance computers and data centres.
In simple terms, glass core substrates are sturdier and more stable than the materials chipmakers currently use, which makes them useful for the next generation of powerful electronics.
The new joint venture is expected to be set up sometime in 2026, once regulatory approvals come through.
Commercial supply isn’t expected to start until the second half of FY28, so this is very much a long term bet rather than an immediate revenue driver for the India listed unit. The news fits into a bigger picture too.
Sumitomo Chemical has been building up its semiconductor materials business for a while now, and India Japan cooperation in this space has been picking up pace in recent months, with over a hundred business deals signed between companies from both countries.
By 15:04 pm on Friday, Sumitomo Chemical India shares were trading at Rs 496.50 on the NSE, up 12.53% from the previous close of Rs 441.20.
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The post Sumitomo Chemical India Soars 14% on Japan JV News appeared first on Equitypandit.
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