Doosan is expanding its Kimje plant to increase production capacity for copper-clad laminate (CCL) used in optical modules for artificial intelligence (AI) data centers.
On October 27, Doosan announced that it signed an investment agreement with the North Jeolla provincial government and Kimje city to establish a dedicated production line for CCL used in optical modules. The signing ceremony was attended by North Jeolla Governor Lee Won-taek, Kimje Mayor Jeong Seong-joo, and Doosan Electronics BG Head Kim In-wook.
This agreement details the expansion of the Kimje plant as part of Doosan's investment plan announced in September, which amounts to approximately 970 billion won. By 2028, Doosan plans to invest 399.2 billion won to construct a CCL production facility covering about 33,000 square meters next to its flexible copper-clad laminate (FCCL) factory in the Jiphyeonseon General Industrial Complex, creating around 200 new jobs. The new production line is expected to begin operations in the second half of 2028.
The expansion is a response to the increasing demand for CCL used in optical modules due to the growth of AI data centers. Doosan's domestic production lines are already operating at over 100% capacity, prompting the need for additional facilities to enhance supply capabilities.
Optical modules are components that convert electrical signals into light signals between servers and network equipment. CCL is a key material for printed circuit boards (PCBs), and CCL for optical modules requires technology that minimizes signal loss at ultra-high speeds. Doosan supplies high-performance CCL used in optical modules operating at speeds of 800G (800 gigabits per second) and above.
Kim In-wook, head of Doosan Electronics BG, stated, "The demand for CCL used in optical modules is rapidly increasing due to the expansion of AI data centers, and this expansion was decided based on the long-term needs of our major clients. We will continue to maintain a cooperative relationship with Kimje city to ensure the timely completion of the factory and establish the Kimje plant as a core production base for CCL used in optical modules to meet our clients' needs."
Doosan first signed an investment agreement with Kimje city in 2022 and completed the FCCL factory in the Jiphyeonseon General Industrial Complex in September 2024. FCCL is a key material for flexible printed circuit boards (FPCBs) used in advanced electronic products such as AI, 5G, and smartphones. Once the expansion is completed, the Kimje plant will produce both FCCL and CCL for optical modules. The total investment amount for Doosan's two agreements with Kimje is 468.5 billion won.
Additionally, Doosan plans to invest approximately 547.4 billion won in Changshu, China, to build a CCL factory for AI accelerators and network switches. This investment aims to meet the demand from local PCB manufacturers, with the new factory expected to begin operations in the second half of 2028.
* This article has been translated by AI.
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