Doosan has announced a strategic investment of KRW 180 billion to build a new Copper Clad Laminate (CCL) production facility in Thailand, with mass production slated to begin in the second half of 2028.
This decision is primarily driven by the explosive growth in the AI industry. As companies build more powerful data centers, the demand for AI servers is projected to grow by over 28% in 2026 alone. These servers, along with advanced networking equipment like 800G and 1.6T switches, require specialized, high-performance components. This is where Doosan's new plant comes in; it will focus on producing the low-loss, high-heat-resistance CCL that is essential for this next-generation hardware. It's a direct move to capture a critical piece of the booming AI infrastructure market.
So, why Thailand? The location is a calculated choice based on several compelling factors. First, the Thai government, through its Board of Investment (BOI), offers significant incentives to attract high-tech manufacturing. This includes an extended corporate tax exemption of up to eight years for CCL producers, which directly improves the project's financial viability. Second, Thailand is rapidly positioning itself as a major hub for the electronics and Printed Circuit Board (PCB) industry, creating a robust local ecosystem. This move also aligns with the broader global trend of diversifying supply chains to mitigate geopolitical risks.
Finally, the investment is a smart hedge against market volatility. The price of copper, a key raw material for CCL, has been high and unpredictable. By establishing a production base in a location with lower operating costs and significant tax advantages, Doosan can better protect its profit margins from fluctuations in raw material prices. In essence, this new Thai facility is built on three pillars: capturing surging AI-driven demand, leveraging favorable government policies, and managing cost-related risks.
- Glossary
- Copper Clad Laminate (CCL): A base material for printed circuit boards (PCBs), consisting of a thin layer of copper foil laminated onto an insulating substrate. It's a fundamental component in virtually all electronic devices.
- Thailand Board of Investment (BOI): A government agency in Thailand responsible for promoting investment by offering incentives, such as tax breaks and streamlined permissions, to both domestic and foreign companies.
- AI Server: A high-performance computer designed specifically for running complex artificial intelligence workloads, featuring powerful GPUs and high-speed networking capabilities.