Sungmoon Electronics Enters 200 Billion Won Edge IDC Market... Accelerating New AI Infrastructure Business

From the left, Junseop Shin, CEO of Sungmoon Electronics, and In Heo, CEO of Samwoo CM. Provided by Sungmoon Electronics

Sungmoon Electronics is set to enter the edge data center (IDC) business with a project valued at 200 billion won, utilizing its owned land. The company's strategy is to foster the artificial intelligence (AI) infrastructure business as a new growth driver, moving beyond the manufacturing sector it has sustained for 40 years.

On September 3, Sungmoon Electronics announced plans to develop a 9.8MW-class 'Seongnam AI Platform Data Center' (tentative name) on its company-owned site, located in Sangdaewon-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do.

To this end, Sungmoon Electronics signed a business agreement for edge IDC development with Samwoo CM Architects & Engineers, a leading domestic construction project management (CM) firm, and Samwoo DCD, a specialist in data center development.

The project site is a factory lot with an area of approximately 1,300 pyeong (4,397 square meters). Sungmoon Electronics plans to participate in the project through land-in-kind contributions and other means. The company aims to finalize permitting and financing structures in the second half of this year, commence construction next year, and start full-scale operations in 2029.

The development site is located within Seongnam High-Tech Valley, one of the leading industrial complexes in the greater Seoul metropolitan area, where companies related to AI and advanced industries are concentrated. The company explained that, as Seongnam-si is actively promoting AI industry development, demand for data processing is expected to rise in the region.

Power supply is also a critical variable in the data center business. Sungmoon Electronics has completed the preliminary application procedures for the power supply required to build the data center and has received confirmation of supply feasibility from Korea Electric Power Corporation (KEPCO). The company also noted that, since the site is within an industrial complex, the likelihood of business delays due to local resident complaints is relatively low.

An edge IDC is a distributed data center constructed close to where data is generated and consumed. Compared to large-scale, centralized data centers, edge IDCs reduce data processing latency and are well-suited for services requiring real-time data handling, such as real-time AI inference, smart cities, autonomous driving, and industrial Internet of Things (IoT).

Sungmoon Electronics plans to use this project as an opportunity to expand its business portfolio from its existing core of deposition film manufacturing into future infrastructure sectors such as AI data centers.

According to global market research firm Grand View Research, the global edge computing market is projected to grow from $34.8 billion in 2025 to $105.8 billion by 2033, with an expected compound annual growth rate of 14.9%.

A Sungmoon Electronics representative stated, "As AI technology proliferates and data processing demand increases, data centers are becoming core infrastructure for future industries. Based on our competitive site location and business execution capabilities, we plan to foster edge IDCs as a mid- to long-term growth driver."

The representative added, "Beginning with this project, we will expand our business domain into an advanced company equipped with core AI infrastructure, thereby enhancing our corporate value."

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