Samsung Medison Expands Hongcheon Plant With 50 Billion Won Investment, Targets Global Medical Device Market

[Financial News] Samsung Medison is investing 50 billion won to expand its production facilities. The company plans to nearly double its production capacity by 2030 and develop its Hongcheon Plant into a key global supply hub to target the global medical device market.

On the 13th, Samsung Medison completed a new manufacturing building for ultrasound diagnostic equipment at its Hongcheon Plant in Hongcheon County, Gangwon Special Self-Governing Province, and held a ceremony to mark the expansion. Attendees included Gangwon Special Self-Governing Province Governor Woo Sang-ho, People Power Party lawmaker Yoo Sang-bum, representatives of major partner companies, and Samsung Medison CEO Yoo Gyu-tae and employees. Samsung Medison, a South Korean medical device company founded in 1985, became a subsidiary of Samsung Electronics Co., Ltd. in 2011.
The new manufacturing building was added with a total floor area of 14,548 square meters (about 4,400 pyeong). It is the largest expansion since Samsung Electronics Co., Ltd. acquired the company.
Samsung Medison pursued the expansion to increase its production base amid rising demand for ultrasound diagnostic equipment and growing sales of premium products. The company plans to use the new manufacturing facility to increase annual production capacity from its current level of 24,000 units to 40,000 units by 2030, while upgrading its manufacturing processes to reliably meet global demand for medical devices.
The Hongcheon Plant is a key production hub for Samsung Medison's premium ultrasound diagnostic equipment, including the Samsung R20 and HERA Z20. Premium devices account for about 30% to 40% of production. The plant handles every stage, from manufacturing circuit boards in-house and assembling components to evaluating reliability through high-temperature aging and shipping finished products, which it exports to around 110 countries worldwide. Samsung Medison plans to develop the Hongcheon Plant into a key global supply hub through this expansion.
Samsung Medison built production lines in the new manufacturing building to account for the characteristics of each process and the flow of materials, and introduced smart processes and automated equipment to improve production efficiency and quality competitiveness.
The company optimized the flow of work from parts receipt through assembly, inspection and shipping to respond flexibly to changes in demand. It also conducts full inspections of every product at each stage of production, aiming for zero-defect quality.
It also drew on Samsung's global supply chain management (SCM) infrastructure and its ability to produce key components in-house to respond to changes in parts supply and strengthen supply stability.
The new manufacturing building is equipped with Samsung Electronics Co., Ltd.'s b.IoT building integration solution, which enables centralized monitoring and control of heating, ventilation and air conditioning systems and energy use. This can reduce energy used for reheating by up to 33.6%. The building energy management system (BEMS) also cuts energy used for HVAC by up to 15%.
The building also uses high-efficiency temperature- and humidity-control equipment that can consume up to 52% less power than existing equipment, helping maintain a stable manufacturing environment while reducing energy use and greenhouse gas emissions.
Samsung Medison also plans to strengthen manufacturing synergies with the Gumi Plant in Gyeongsangbuk-do.
Established in September 2012, the Gumi Plant is dedicated to producing probes, key components that transmit and receive ultrasound. Expanding production space and improving process layout have increased its annual production capacity by about 17% from its previous level.

Samsung Medison is continuing to post double-digit revenue growth that outpaces the global ultrasound diagnostic equipment market, setting successive records for its highest-ever results. Its revenue has nearly tripled since it became part of Samsung in 2011.
Last year, while the global ultrasound diagnostic equipment market grew by 3.7%, Samsung Medison's revenue grew by 16.2%. This year, its revenue growth is forecast to remain in the double digits, at about three times the global market's projected growth rate of around 4%, putting the company within reach of a top-three position in the global ultrasound diagnostic equipment market.After launching the HERA Z20 for obstetrics and gynecology in 2024 and the R20 for radiology in 2025, Samsung Medison released the Z10 for obstetrics and gynecology this year. By strengthening its premium ultrasound diagnostic equipment lineup, the company is targeting major hospitals and public institutions worldwide.Samsung Medison is seeking new growth drivers by combining its accumulated expertise in ultrasound diagnostics with its AI and software capabilities. It plans to strengthen the competitiveness of its premium products and AI-based diagnostic solutions, and expand links with new clinical fields and treatment technologies to secure growth drivers in the future medical device market.
Yoo Gyu-tae, head of Samsung Electronics Co., Ltd.'s Medical Device Business Division and CEO of Samsung Medison, said, “The expansion of the Hongcheon Plant is a strategic investment to proactively respond to growing global demand and the expansion of our business areas.” He emphasized, “Building on our strengthened manufacturing infrastructure, we will raise our standing as a global forward base supplying innovative products to healthcare facilities around the world.”
[email protected] Park So-hyun Reporter