Doosan to expand production of optical-module materials for data centers, invest 399.2 billion won in Gimje

[Financial News] Doosan is moving to expand production capacity for copper-clad laminate (CCL), a key material for optical modules used in artificial intelligence (AI) data centers. With demand for high-speed optical modules surging amid increased investment in data centers, the company aims to secure a stable supply base through a large-scale expansion.
Doosan said on the 27th that it had signed an investment agreement with Jeonbuk Special Self-Governing Province and Gimje City to build a dedicated production line for CCL used in optical modules. The signing ceremony, held that day at the provincial government office, was attended by Jeonbuk Special Self-Governing Province Governor Lee Won-taek, Gimje Mayor Jeong Seong-ju and Kim In-wook, head of Doosan’s Electronic Business Group, among others.
This investment fleshes out the expansion of the Gimje plant under the 970 billion won investment plan Doosan announced last September. By 2028, Doosan will invest a total of 399.2 billion won to build a CCL production facility for optical modules, with a gross floor area of about 33,000 square meters, near its existing flexible copper-clad laminate (FCCL) plant in the Jipyeongseon General Industrial Complex in Gimje. The project is also expected to create around 200 new jobs. The new production lines will begin operating in phases from the second half of 2028.
The expansion is intended to meet rising demand for CCL used in optical modules as AI data centers become more widespread. Doosan’s domestic production lines are already operating at more than 100% capacity. The company expects the new facility to give it substantial additional supply capacity to meet growing demand from customers.
Optical modules are components that convert electrical signals into light signals to transmit data between servers and network equipment. CCL is a key material used in printed circuit boards (PCBs). CCL for optical modules, in particular, requires advanced technology because signal loss must be minimized during ultra-high-speed data transmission. Doosan supplies high-performance CCL used in high-speed optical modules rated at 800 gigabits (G) or higher. Its products are tailored for fine-circuit fabrication needed for high-speed data transmission, and the company supplies key materials to major optical-module manufacturers.
Kim In-wook, head of Doosan’s Electronic Business Group, said, “Demand for CCL for optical modules is growing rapidly as AI data centers expand, and this expansion was decided based on the medium- to long-term demand of major customers.” He added, “We will continue our close cooperation with Gimje City, complete construction of the plant without disruption, and develop the Gimje plant into a key production hub for CCL for optical modules so we can supply the volumes our customers need on time.”
Meanwhile, Doosan signed its first investment agreement with Gimje City in 2022 and completed its FCCL plant in the Jipyeongseon General Industrial Complex in September 2024. FCCL is a thin, flexible copper-clad laminate and a key material for flexible printed circuit boards (FPCBs) used in AI, 5G and smartphones. Once the expansion is complete, the Gimje plant will become a hub producing both FCCL and CCL for optical modules. The two investment agreements Doosan has signed with Gimje City total 468.5 billion won.
[email protected] Jung Won-il Reporter