Samsung Medison launches largest-ever expansion 15 years after acquisition, eyes global top 3

Samsung Medison expands production facility at Hongcheon-gun site

50 billion won investment to double output capacity amid surging ultrasound demand

Sales have nearly tripled since 2011 acquisition; operating profit record in sight

Roh Tae-moon vows continued medtech investment to make Samsung a global leader

The new ultrasound diagnostic device manufacturing building at Samsung Medison's Hongcheon-gun facility in Gangwon Province [Samsung Electronics]

Samsung Medison, the medical device subsidiary Samsung Electronics acquired to secure future growth engines, has launched its largest-ever production expansion and declared its ambition to break into the global top three.

The late Samsung Electronics Chairman Lee Kun-hee had identified five next-generation businesses — solar cells, automotive batteries, light-emitting diodes, pharmaceuticals and biotech, and medical devices — and in 2011 brought medical device maker Medison into the fold.

The subsidiary was once dismissed as the "ugly duckling" of the group after posting losses for a stretch following the acquisition, but its recent rapid growth has drawn assessments that the deal is finally bearing fruit.

The expansion is expected to strengthen Samsung Electronics' medtech strategy — one of its key new business pillars — while also boosting the local economy in Gangwon Province.

50 billion won investment to double capacity, 15 years after Samsung takeover

Gangwon Province Governor Woo Sang-ho, People Power Party lawmaker Yoo Sang-bum and others listen to Samsung Medison CEO Yoo Gyu-tae explain the new ultrasound diagnostic device manufacturing building at the company's Hongcheon-gun facility in Gangwon Province on Friday. [Samsung Electronics]

Samsung Medison held a completion ceremony Friday for a new ultrasound diagnostic device manufacturing building at its Hongcheon-gun facility in Gangwon Province. Gangwon Province Governor Woo Sang-ho, People Power Party lawmaker Yoo Sang-bum, Hongcheon-gun Mayor Shin Young-jae, Samsung Medison CEO Yoo Gyu-tae, company executives and employees, and representatives from key partner firms attended.

To meet rising demand for ultrasound diagnostic devices, Samsung Medison invested 50 billion won ($37.5 million) to build a new production facility spanning 14,548 square meters — the largest expansion since the company was folded into Samsung Electronics in 2011.

The Hongcheon-gun site, established in 1988, manufactures all products exported to more than 110 countries. Premium ultrasound diagnostic devices supplied to medical professionals worldwide, including the R20 and HERA Z20 models, are produced there.

Through the new facility, Samsung Medison plans to double its production capacity from current levels by 2030. With exports accounting for 90 percent of total sales, the company intends to develop the Hongcheon-gun site into a core global manufacturing hub.

Attendees take part in a ribbon-cutting ceremony at the completion event for the new ultrasound diagnostic device manufacturing building at Samsung Medison's Hongcheon-gun facility in Gangwon Province on Friday. From third from left: Hongcheon-gun Mayor Shin Young-jae, Gangwon Province Governor Woo Sang-ho, Samsung Medison CEO Yoo Gyu-tae, People Power Party lawmaker Yoo Sang-bum, Gangwon Provincial Assembly Speaker Park Gil-seon, G1 Gangwon Broadcasting President Jeon Jong-ryul, Hongcheon-gun Council Speaker Jeong Gwan-gyo and Samsung Global Research President Kim Wan-pyo. [Samsung Electronics]

Son Hyun-su, head of Samsung Medison's manufacturing team, who guided visitors through the facility Friday, said annual output currently stands at 24,000 units but that the company has proactively secured space to scale up to 40,000 units as demand warrants. "The ceiling height allows us to install overhead rail systems and bring in additional equipment, so we can ramp up production capacity quickly," Son said.

A striking feature of the new facility was the heavy emphasis on quality verification at every production stage. Each step requires passing a defined set of tests before moving to the next process. "It reflects our conviction that not a single defective product will leave this facility," Son said.

The building also incorporates Samsung Electronics' building integrated solution b.IoT, whose intelligent temperature and humidity control algorithm cuts reheat energy consumption by up to 33.6 percent. High-efficiency constant-temperature and humidity equipment reduces power consumption by up to 52 percent compared with conventional systems, delivering meaningful reductions in both energy use and greenhouse gas emissions.

Record earnings since Samsung acquisition lay groundwork for medtech push

A production staff member checks an advanced SMD (surface-mount device) process for manufacturing ultrasound diagnostic device mainboards on the production line at Samsung Medison's Hongcheon-gun facility in Gangwon Province. [Samsung Electronics]

Samsung Medison posted sales of 665.1 billion won last year, up 16.2 percent from the previous year, surpassing the 600 billion won mark for the first time and extending its double-digit growth streak to two consecutive years. Sales have grown nearly threefold since the company was absorbed into Samsung Electronics.

Operating profit rose 9.8 percent to 87 billion won last year. Both figures represent all-time highs since the Samsung Electronics acquisition.

With the global ultrasound diagnostic device market expected to grow 4 percent this year, Samsung Medison is projecting sales growth roughly three times that rate. Operating profit is forecast to surpass 100 billion won for the first time in the company's history.

Driving this growth is an expanded lineup of premium products incorporating AI technology. On that foundation, Samsung Medison is on the verge of breaking into the top three in the global ultrasound diagnostic device market.

Samsung Medison has also secured supply agreements with Mayo Clinic and Cleveland Clinic — ranked first and third respectively among the world's best hospitals in Newsweek's 2026 list — for its premium ultrasound product lineup. The company also supplies its R20 model to Karolinska University Hospital in Sweden, which topped the European rankings in the same assessment.

The new ultrasound diagnostic device manufacturing building at Samsung Medison's Hongcheon-gun facility in Gangwon Province [Samsung Electronics]

The local community in Gangwon Province has also expressed strong expectations for Samsung Medison's latest production expansion.

Medical devices manufactured at the Hongcheon-gun facility have ranked first among Gangwon Province's export items for 10 consecutive years. Buoyed by that performance, Gangwon Province has achieved annual medical device exports of approximately $810 million, placing it second among all provinces and metropolitan cities nationwide.

Gangwon Province Governor Woo Sang-ho, speaking at the ceremony Friday, said the presence of a Samsung Medison factory in Gangwon Province carries great significance. "It is meaningful that a company with its sights set on becoming the world's No. 1 is taking root here in Gangwon Province," Woo said.

Samsung Electronics also signaled its commitment to strengthening its medtech business on the back of Samsung Medison's growth.

Roh Tae-moon, president and CEO of Samsung Electronics' Device eXperience division, said in a video address that Samsung Electronics "will not stop pushing to become a global leader through focused investment in the medtech sector." He added that the expansion of the new Hongcheon-gun factory "will serve as a milestone in securing world-class manufacturing competitiveness."

joze@heraldcorp.com