South Korean PCB automation equipment manufacturer Taesung (KOSDAQ: 323280) is advancing its strategic expansion efforts, focusing on the composite copper foil and glass substrate equipment markets. The company announced on March 27 that it would invest KRW 55.25 billion (approximately CNY 274 million or USD 38 million), representing 45.4% of its equity, to establish a new production facility in Cheonan, South Chungcheong Province. The investment plan officially launched on April 1, 2025, and the project is scheduled for completion by June 30, 2026.

Construction Underway, Alternative Production Plan in Place

The groundbreaking ceremony for the new Cheonan facility took place on February 21, 2025, marking a major milestone in Taesung's expansion. The 33,059㎡ factory, located in the Cheonan North BIT General Industrial Complex (Plot 8-2), was acquired in September 2024 as part of the company's long-term growth strategy.

However, due to delays in design approvals and regulatory procedures, the completion of the new facility is now expected to be postponed to 2026 or later. To mitigate potential setbacks, Taesung has secured a temporary rental facility near Cheonan, spanning 5,000–7,000 pyeong (16,500–23,000㎡). The company has finalized leasing agreements and manufacturing workforce arrangements, with initial production set to begin in Q2 2025.

Chinese Copper Foil Deals Nearing Completion

As of February 25, 2025, Taesung had been in final-stage NDA negotiations with two major Chinese copper foil manufacturers, E and Y. CEO Kim Jong-hak recently returned from China after high-level discussions regarding production volume and delivery schedules. Reports indicate that E and Y are considering orders for up to 134 and 200 production lines, respectively.

Additionally, China's largest battery manufacturer, C, has already signed an NDA with Taesung, and supply contract discussions are progressing rapidly. C plans to visit Taesung's headquarters in April to inspect production capabilities before finalizing agreements. Meanwhile, another Chinese company, B, has completed final meetings on glass substrate equipment orders, with contract signings anticipated soon.

At Taesung's annual shareholder meeting on March 31, investors raised concerns over the delayed signing of copper foil equipment contracts, originally expected to be finalized in Q1 2025. Taesung acknowledged that technical specifications and inspection requirements had taken longer than planned but reassured shareholders that contracts should be secured in Q2 2025. The company also confirmed that additional Chinese firms are in discussions, with several expected to visit Taesung in April for product evaluations.

Growing Momentum in Domestic and International Markets

In addition to Chinese clients, Taesung has been actively negotiating with major South Korean copper foil manufacturers, with at least one large-scale contract expected by the end of Q1 2025. The company believes this deal could set a precedent for further domestic orders.

On the glass substrate equipment front, Taesung is finalizing a supply deal with South Korea's Joongwoo M-Tech for etching equipment. Additionally, the company recently participated in CPCA, China's largest PCB exhibition, engaging in detailed discussions with leading Chinese firms.

Looking ahead, CEO Kim Jong-hak confirmed that partial deliveries from the rental facility will begin in Q2 2025, while the Cheonan factory is expected to start trial production in October 2025 and ramp up to full-scale operations in 2026. The composite copper foil equipment production capacity will begin at 20 units per month, with plans for full-scale production next year.

With a strong order pipeline and strategic adjustments to ensure production continuity, Taesung remains committed to strengthening its position in the battery and semiconductor supply chain.