Doosan Plans Record 970 Billion Won Expansion for AI Data Center Materials

Doosan Corp. will invest 970 billion won, or about $702 million, to expand production of high-end copper-clad laminates used in artificial intelligence data centers, marking the company’s largest investment in the materials business to date.

The South Korean conglomerate said the spending will be divided between facilities in South Korea and China and carried out in phases through 2028. The plan reflects accelerating demand for specialized electronic materials as global technology companies build more data centers and computing infrastructure for AI services.

Copper-clad laminate, commonly known as CCL, is a core material used to manufacture printed circuit boards. It supports the transmission of electronic signals and is used in equipment including AI accelerators, network switches and optical modules. These components have become increasingly important as data centers require faster and more reliable connections between servers and computing systems.

Under the plan, Doosan will spend 420 billion won to expand South Korean production lines for CCLs used in optical modules. The company said domestic production will allow it to draw on specialized personnel while maintaining tighter control over quality and core technology.

A further 550 billion won will be used to build a new plant in China producing CCLs for AI accelerators and network switches. Locating that capacity in China will place production closer to global printed circuit board manufacturers, allowing Doosan to respond more quickly to customers and adjust output as demand changes.

The new lines in both countries are scheduled to begin operations in the second half of 2028. Doosan said its existing South Korean production lines are already running above full capacity, adding urgency to the expansion.

The investment also broadens a manufacturing expansion already under way. In April, Doosan announced plans for a new CCL facility in Thailand, adding another base to its global production network.

Doosan expects the latest capacity increase to stabilize supplies of high-end CCLs and support longer-term growth as orders linked to AI infrastructure rise. Yoo Seung-woo, president of Doosan Corp., said the company is investing proactively to provide products on time, strengthen customer trust and capture growth in the expanding AI data center market.

The decision illustrates how the AI investment boom is spreading beyond semiconductor designers and cloud operators to suppliers of the materials needed inside data center hardware. For Doosan, the expansion represents a large bet that demand for faster networking and computing equipment will remain strong through the end of the decade.