Doosan Bets KRW 1 Trillion on CCL Capacity Expansion to Capture Data Center Demand

[Financial News] Doosan will invest approximately KRW 970 billion to expand its production capacity for high-end CCLs used in artificial intelligence (AI) data centers. As demand for CCLs used in AI accelerators, network switches and optical modules grows rapidly, the company plans to proactively respond to increasingly large orders from customers.
Doosan disclosed on the 17th that it will make facility investments totaling approximately KRW 970 billion in Korea and China. The investments will be made in phases over three years through 2028, with the new production lines scheduled to begin operating sequentially in the second half of 2028.
In Korea, Doosan will invest approximately KRW 420 billion to expand its CCL production line for optical modules. Given the need for stringent quality control and protection of core technologies, the company plans to utilize specialized personnel in Korea. In China, it will invest approximately KRW 550 billion to build a new plant for CCLs used in AI accelerators and network switches. The move is intended to accelerate customer response times in China, where global PCB manufacturers are concentrated, and enable the company to respond swiftly to rapidly changing demand.
CCL is a key material for printed circuit boards (PCBs) and is widely used in AI accelerators, network switches and optical modules for AI data centers. High-end CCLs for AI accelerators are considered products with high barriers to entry because they must minimize signal loss during ultra-high-speed signal transmission. Doosan touts the technological expertise it has accumulated through more than 50 years of efforts to localize CCL production as a core competitive advantage. In the optical module sector, which converts electrical signals between servers and network equipment into optical signals for transmission, the company currently supplies high-end CCLs for products starting at 800G and supporting fine-circuit fabrication.
The company's technological capabilities are also reflected in the growth of its related business. Doosan Electro-Materials BG surpassed KRW 1 trillion in annual revenue for the first time in 2024, followed by approximately KRW 1.9 trillion in revenue last year, an 86% increase from the previous year. The company is continuing to expand its global production capacity, including through its announcement last April of plans to build a new plant in Thailand.
The large-scale investment is seen as a strategic move to address supply shortages stemming from the expansion of the AI data center market. As global big tech companies continue to invest in data centers, the scale of CCL orders is growing to the trillion-won level, while Doosan's domestic production lines are already operating at more than 100% capacity. Through the investment, Doosan aims to solidify its position as a supplier equipped with both technological expertise and production capabilities.
Yoo Seung-woo, president of Doosan, said, "As the AI data center market grows, customer orders are also becoming larger. With investments made one step ahead, we will supply the required volumes on time, live up to customer trust and accelerate our mid- to long-term growth."
[email protected] Jung Won-il Reporter