Samsung Electronics to Build New HVAC Production Line for Flextronics Group at Gwangju Site

*This content was translated by AI.

Samsung Electronics announced on the 19th that it will establish a new HVAC production line from Flextronics Group, which it acquired last year, at its Gwangju site to respond to the rapidly growing global heating, ventilation, and air conditioning (HVAC) market.

Samsung Electronics plans to invest approximately 240 billion won to construct an HVAC product production line covering a total floor area of 21,800 square meters (about 6,600 pyeong), equivalent to the size of three soccer fields, at the Third Campus of its Gwangju site located in Buk-gu, Jeollanam-do Gwangju Metropolitan City.

Samsung Electronics, Flextronics Group Korea, and Jeollanam-do Gwangju Metropolitan City signed an investment agreement on the 19th at the Gwangju City Hall. Attendees of the signing ceremony included Min Hyung-bae, Governor of Jeollanam-do Gwangju Metropolitan City; Kim Cheol-ki, Executive Vice President and Head of Samsung Electronics' DA Business Division; and Im Sung-taek, CEO of Flextronics Group Korea and Head of the HVAC Business Team within the DA Business Division.

The new production line is scheduled to begin mass production of key HVAC products from Flextronics Group, including Coolant Distribution Units (CDUs), starting in early 2028.

According to Samsung Electronics, this production line will integrate the technology and manufacturing capabilities of Flextronics Group acquired last year into domestic operations, officially launching its global HVAC business as a new growth engine. Building on synergies with Flextronics Group, the company plans to expand supply of HVAC solutions to diverse customers, including AI data centers and advanced manufacturing facilities both domestically and internationally.

This investment in the new production line marks the first large-scale production facility investment at the Gwangju site since its establishment in 1989 (then known as Gwangju Electronics), 37 years later.

The Gwangju site began as a home appliance production base and has recently expanded its role into a core production hub for AI-powered appliances, including "Bespoke AI Family Hub" refrigerators, "Bespoke AI Combo" washer-dryers, and "Bespoke AI No-Breeze Air Conditioners."

It also plays a central role in disseminating advanced manufacturing technologies to overseas production subsidiaries. In 2010, it established the Precision Mold Development Center to support Samsung Electronics' development of differentiated manufacturing capabilities.

Samsung Electronics plans to develop the Gwangju site into a global production hub encompassing both AI home appliances and HVAC systems, leveraging its existing production infrastructure and manufacturing expertise, while continuously strengthening its competitiveness in the global HVAC market.

Flextronics Group is a global specialist in air conditioning with over 100 years of history, possessing strong capabilities in central air conditioning systems. It operates 14 production lines and eight research centers across the United States, Europe, Asia, and other regions, developing and producing central HVAC equipment for data centers, industrial manufacturing facilities, and commercial facilities such as hotels, airports, and museums.

The newly established Gwangju production line will be Flextronics Group's 15th global production facility and is set to serve as a key hub targeting global AI data centers. The line will produce CDUs, which are core equipment in liquid cooling systems for AI data centers. CDUs act as "intermediaries" connecting chillers (building cooling facilities) with cold plates that directly cool servers.

Recently, as high-performance equipment such as AI servers within data centers has surged, demand for liquid cooling technology to complement air cooling methods has increased. Flextronics Group has enhanced the power efficiency of CDUs and strengthened energy efficiency and stability by applying redundant designs and anomaly detection functions.

In addition, the new production line will also manufacture Fan Wall Units (FWU) for data center air cooling, Computer Room Air Handlers (CRAH), and Air Handling Units (AHU) for large-scale buildings.

Furthermore, Samsung Electronics plans to offer differentiated HVAC solutions by combining Flextronics Group's central air conditioning technology with its B2B connectivity and integrated control platform, "SmartThings Pro," along with building-integrated solutions (b.IoT).

Kim Cheol-ki, Executive Vice President and Head of Samsung Electronics' DA Business Division, stated, "Samsung Electronics will rapidly expand its HVAC business, a future growth engine, to become a leading company in the global market." He added, "The establishment of this Gwangju production line will serve as an important foundation for securing differentiated competitiveness in the HVAC business."

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*This content was translated by AI.