Samsung Electronics invests $173 million in new HVAC production line in Gwangju

Samsung Electronics is set to significantly expand its presence in the global Heating, Ventilation, and Air Conditioning (HVAC) market by establishing a new production line at its Gwangju facility. The company announced on August 19th that it will invest approximately 240 billion won (about $173 million) to build this facility, which will be dedicated to producing HVAC systems.

The new production line, located at the third campus of the Gwangju facility, will span 21,800 square meters, equivalent to three football fields. This marks the largest investment in the Gwangju facility since its establishment in 1989. The facility, which began as a home appliance production base, has evolved into a key hub for AI-powered appliances like refrigerators, washers, and air conditioners.

Starting in 2028, the Gwangju plant will manufacture Cooling Water Distribution Units (CDUs), a core product of Billrenger, a German HVAC specialist acquired by Samsung last year for 2.4 trillion won. CDUs are crucial for AI data centers, managing the cooling of high-performance servers by circulating coolant and regulating temperature and pressure. The growing demand for AI infrastructure has heightened the importance of such cooling solutions.

Samsung aims to integrate Billrenger's technological and production capabilities into its domestic operations, positioning the Gwangju plant as a global production hub for both AI appliances and HVAC systems. This strategic move is expected to drive Samsung's new growth engine by fully developing its global HVAC business. Billrenger, founded in 1918, operates 14 HVAC production lines and 8 research centers worldwide, supplying equipment for data centers, industrial facilities, and commercial buildings.

“

The construction of this Gwangju production line will be an important foundation for securing differentiated HVAC business competitiveness.