Samsung Electronics will invest 240 billion KRW to establish a heating, ventilation, air conditioning (HVAC) production line at its Gwangju complex. Aiming for initial operation in early 2028, the facility will focus on producing the 'Cooling Distribution Unit (CDU)', a core HVAC product for artificial intelligence data centers (AIDC).
Samsung Electronics signed an investment agreement on the 19th with Flakt Group Korea and Jeonnam Gwangju Integrated Special City. Under the agreement, Samsung Electronics will invest approximately 240 billion won to construct an air conditioning product production line spanning 21,800 m² (about 6,600 pyeong)—equivalent to the size of three soccer fields—at the third campus of the Gwangju complex located in Buk-gu, Jeonnam Gwangju Integrated Special City.
The Gwangju production line will be Flakt Group's 15th production base and its first new factory established since Samsung Electronics' acquisition. It will also be the company's first production base in East Asia.
The primary product of the Gwangju line, the CDU (Central Distribution Unit), acts as an intermediary connecting chillers (building cooling systems) and cold plates that directly cool servers. It precisely controls the pressure and temperature of chilled water generated by chillers, removes impurities, and supplies clean, safe coolant to server equipment.
Through the establishment of the Gwangju production line, Samsung Electronics plans to integrate Flakt Group's technology and production capabilities—acquired last year—into its domestic operations and accelerate its global HVAC business. Flakt Group has enhanced energy efficiency and stability by improving CDU power efficiency, applying dual-system designs, and incorporating anomaly detection features.
Initial production from the Gwangju line is expected to prioritize growing domestic demand for AIDC (Automated Intelligent Data Center) construction. Samsung Electronics will transition some Flakt Group products previously sourced from overseas facilities in Europe to domestic production, reducing lead times and building a supply chain capable of meeting customer-specific design requirements.
The Gwangju production line will also manufacture fan wall units (FWU) for data center air cooling, computer room air handlers (CRAH), and large-scale building air conditioning units (AHU).
Samsung Electronics plans to provide differentiated HVAC solutions by combining FlaktGroup's central air-conditioning technology with its B2B connectivity and integrated control platform 'SmartThings Pro' and building-integrated IoT (b.IoT) solutions. Leveraging the synergy between FlaktGroup's central air-conditioning and Samsung's connectivity platform, the company aims to emerge as a leading global HVAC market leader by 2030.
Samsung's investment in Gwangju marks the first in 37 years since the establishment of the Gwangju site in 1989. Based on existing production infrastructure and manufacturing capabilities, Samsung will develop the Gwangju site into a global production hub encompassing AI home appliances and HVAC, while continuously strengthening its global HVAC business competitiveness.
Kim Chul-ki, Vice President and Head of Samsung Electronics' DA Business Team, stated, “We will rapidly expand our HVAC business, a future growth driver, to become a leading global player. The establishment of the Gwangju production line will serve as a crucial foundation for securing differentiated HVAC business competitiveness.”
