Doosan (000150.KS) is expanding its plant in Gimje, Jeonbuk State, to boost output of copper clad laminates (CCL) for optical modules, demand for which is rising as artificial intelligence data centers expand.
The company said on the 27th that it signed an investment agreement with Jeonbuk State and the city of Gimje to build a dedicated production line for optical module CCL. The signing ceremony at the Jeonbuk State government office was attended by Kim In-wook, head of Doosan's electronics business group, Jeonbuk State Governor Lee Won-taek and Gimje Mayor Jeong Seong-ju. The agreement spells out the Gimje expansion portion of an investment plan worth about 970 billion won ($680 million) that the company announced in September.
Doosan will spend 399.2 billion won through 2028 to build an optical module CCL production facility with a total floor area of about 33,000 square meters, next to its flexible copper clad laminate (FCCL) plant in the Jipyeongseon General Industrial Complex in Gimje, and will hire about 200 workers. The new line is scheduled to start operating in phases from the second half of 2028. The company said utilization at its domestic lines has already exceeded 100%, and it expects the expansion to give it the capacity to supply large volumes on a stable basis.
Optical modules are components that convert electrical signals into light signals so that servers and network equipment can exchange them. CCL is a core material for printed circuit boards (PCBs), and the version used in optical modules requires advanced technology because signal loss in ultra-high-speed transmission must be kept to a minimum. Doosan supplies high-end CCL designed for the fine circuitry of high-speed optical modules rated at 800 gigabits per second (800G) and above, establishing itself as a key partner for major optical module makers.
"Demand for optical module CCL is growing rapidly as AI data centers expand, and this expansion was decided based on the medium- to long-term demand of our major customers," Kim said. "We will maintain our continued cooperation with Gimje City, complete the plant without delays, and develop the Gimje plant into a core production base for optical module CCL so that we can supply the volumes our customers need on time."