Samsung Electronics to Invest 240 Billion Won in Gwangju HVAC Hub

Samsung Electronics is planning to invest 240 billion won, approximately $171.5 million, in Gwangju to transform its operations into a leading global hub for heating, ventilation and air conditioning (HVAC) systems. This marks the largest investment in production facilities at the site since its establishment in 1989. On August 19, Samsung signed an agreement with Gwangju Metropolitan City and HVAC specialist FlaktGroup Korea to build a third campus at the plant, covering 21,800 square meters. The investment will create new production lines led by technology from the acquired FlaktGroup.

The facility will focus on manufacturing cooling distribution units (CDUs) essential for liquid-cooling systems in AI data centers, as well as other high-value HVAC components like fan wall units, computer room air handlers, and air handling units for large buildings. Samsung plans to integrate FlaktGroup's central HVAC technology with its SmartThings Pro platform and b.IoT building-management solutions.

By expanding its HVAC business, Samsung aims to become a global leader in the rapidly growing AI data center infrastructure market. The Gwangju production line will be the company's 15th HVAC manufacturing facility worldwide, combining its existing home appliance capabilities with FlaktGroup's expertise to create an integrated production base for both AI appliances and HVAC equipment.

Kim Cheol-gi, executive vice president of Samsung Electronics, stated that the new Gwangju production line will be crucial in strengthening the company's competitive position in the market.