CPSYSTEM to Build Second Plant in Response to Expanding Semiconductor and Robotics Demand

CPSYSTEM is building a second plant to expand capacity in response to increasing demand from the semiconductor and robotics industries.

According to CPSYSTEM on August 25, the company has secured land and facilities with a site area of 9,096 square meters and a building area of 543.5 square meters to establish the new factory. Once operational, the total production capacity (CAPA) is expected to increase to about three times the current level. Construction is planned to take around six months, with completion targeted for the first half of 2027. The total investment amounts to KRW 7.1 billion.

The second plant will be located right next to the existing first plant, enabling integration of production and logistics systems. CPSYSTEM plans to boost operational efficiency by consolidating its manufacturing base and to flexibly respond to rising order volumes and tighter delivery requirements.

CPSYSTEM is expanding its supply in ultra-clean production environments such as semiconductors, displays, and secondary batteries, leveraging its G-Clean Chain, which is the world's first to obtain ISO Class 1 certification while cables are already routed. With the automation and advancement of production processes, the application of ultra-clean cable chains for manufacturing and transport equipment is on the rise, which is driving related revenue growth.

The Roboway cable protection solution for robotics is also becoming a new growth driver. The product is designed to protect cables securely during robots' complex and repetitive movements, and as the robotics industry grows, its range of applications is expected to expand as well.

Global expansion of semiconductor facility investment is also expected to support growth. As leading domestic and international semiconductor companies such as Samsung Electronics, SK hynix, TSMC, and CXMT continue to increase production capacity, demand for G-Clean Chain for use in manufacturing and transport equipment is anticipated to rise. Applications are also expanding into advanced manufacturing sectors like Foxconn and Tesla, and the company plans to actively respond to such demand based on the new second plant.

The company’s performance is also on an upward trend. In the second quarter of this year, CPSYSTEM recorded revenue of KRW 6.8 billion, up 31.6% year-on-year, and operating profit of KRW 1.9 billion, up 166%. The growth was driven by high value-added products for advanced industries such as semiconductors, as well as expansion of global sales.

A spokesperson for CPSYSTEM said, "Driven by G-Clean Chain and Roboway, demand from major downstream sectors such as semiconductors and robotics is increasing rapidly. With the construction of our second plant, we will enhance our production efficiency and supply capacity, and actively seize business opportunities arising from the expansion of facility investment in advanced industries in both domestic and overseas markets."

This content was produced with the assistance of AI translation services.