Samsung Electronics (KRX:005930) will invest about 240 billion won to build a heating, ventilation, and air conditioning (HVAC) production line at its Gwangju business site, according to a Wednesday release.

The move will anchor rising demand from the global HVAC market.

The production line will be in cooperation with air conditioning company Flact Group, which Samsung Electronics acquired last year, and Jeonnam Gwangju Integrated Special City.

The production line will produce coolant distribution unit (CDU), a core air conditioning product of Flact Group and a core equipment used for the AI data center liquid cooling system, at the start of 2028.

Shares of Samsung Electronics fell nearly 8% in recent trade.