Doosan Invests KRW 970B to Expand CCL Capacity

According to Doosan, the South Korean company announced on September 17 that it plans to invest up to KRW 970 billion (approximately RMB 4.7 billion) to expand copper-clad laminate (CCL) production capacity in South Korea and China, as demand for CCL continues to grow.

Under the expansion plan, Doosan will invest approximately KRW 420 billion in its South Korean facilities, mainly to add new CCL production lines for optical modules. Another KRW 550 billion will be invested in China to build a new CCL plant dedicated to AI accelerators and network switches. The capital expenditure will be implemented in phases through 2028, with the new production lines expected to begin production from the second half of 2028.

Morgan Stanley analysts estimate that the investment could increase Doosan's CCL production capacity by approximately 2 million sheets per month, equivalent to about 2% of projected global CCL capacity in 2028. The analysts said the large-scale expansion further reflects strong demand for high-end CCL materials and does not change their view that advanced CCL materials are likely to remain in short supply.

Morgan Stanley also expects Doosan's expansion to have positive spillover effects across the CCL industry. Taiwan-based Taiwan Union Technology Corporation (TUC) and Taiwan Glass Ind. Corp. are expected to benefit from growing AI demand and the shift toward higher-performance materials. Unimicron Technology is also expected to benefit from demand related to 5G and data centers, although Morgan Stanley maintained a neutral view due to relatively limited valuation appeal.