Doosan of South Korea Invests 970 Billion Won to Expand CCL Capacity for AI

en.Wedoany.com Reported - On September 17, Doosan Corporation of South Korea announced a copper-clad laminate (CCL) capacity expansion plan, under which it will invest approximately 970 billion won in South Korea and China combined to expand production capacity for high-end CCL used in AI data centers. Of this, the South Korean project involves an investment of approximately 420 billion won to expand a CCL production line for optical modules; the Chinese project involves an investment of approximately 550 billion won to build a new CCL plant for AI accelerators and network switches. The related investment plan will run from 2026 through 2028, and the new capacity is expected to come on stream progressively starting in the second half of 2028.

The South Korean expansion project will be carried out at one of the production bases Doosan currently operates, including Iksan and Gimje in North Jeolla Province, Jeungpyeong in North Chungcheong Province, and Gimcheon in North Gyeongsang Province, with a focus on increasing high-end CCL production capacity for optical modules. Doosan said that optical module products have high requirements for quality management and protection of core technologies, so the related new capacity will continue to be located in South Korea, and the expansion will be advanced using the existing R&D, production, and technical personnel systems.

The Chinese project will involve building an independent CCL production plant, mainly producing high-end copper-clad laminates required for AI accelerators and network switches. Doosan chose China as the location for the new capacity mainly because a large number of global PCB manufacturers are concentrated there, which can shorten customer certification, delivery, and supply chain response cycles. The project involves an investment of approximately 550 billion won, accounting for about 57% of the total investment of 970 billion won in this round.

Copper-clad laminate is a core base material for printed circuit boards (PCBs), made by laminating copper foil with insulating material. AI accelerators, network switches, and high-speed optical modules in AI data centers all require high-performance PCBs, and demand continues to grow for low-loss, highly heat-resistant, and high-speed signal transmission materials. Doosan's expansion this time is focused on this high-end product segment.

The utilization rate of Doosan's existing CCL production lines in South Korea has already exceeded 100%. As AI data center construction expands and orders for high-end CCL increase, the company is increasing capacity simultaneously through the South Korean line expansion and the new plant in China. The 970 billion won also represents the largest single equipment investment in Doosan's own business to date.

According to the current timetable, the projects in the two locations will be built in phases over the next three years and begin operation progressively in the second half of 2028. Doosan has not yet announced the specific expansion site in South Korea, the city where the new Chinese plant will be located, the designed capacity of a single plant, or the specific scale of equipment procurement.