Korea's deck plate industry, battered by a prolonged construction downturn, is betting on a recovery driven by semiconductor plants and AI data centers. As memory chip investment resumes and global production facilities expand, demand for the steel building material is expected to rebound.
Deck plate is a steel structure that supports slabs when concrete is poured. It shortens construction time and improves safety, making it essential for large industrial facilities such as semiconductor fabs, AI data centers, logistics centers, and high-rise buildings. Facilities that must withstand heavy equipment loads mostly use steel-frame structures, so their deck plate demand runs higher than that of ordinary buildings.
Two years of declining sales
The downturn has hit major domestic makers hard. Industry leader Deokshin EPC saw sales fall to 106.4 billion won last year from 218 billion won in 2023 - roughly a 50 percent drop. Jeil Technos' deck plate division sales plunged to 53.6 billion won from 141.7 billion won over the same period.
Signs of recovery are now appearing in the construction market. According to Statistics Korea, construction completed - an indicator of domestic builders' performance - turned to an increase in May for the first time in three months, then rose 4.1 percent from the previous month in June. The industry attributes the uptick to production facility expansion by Samsung Electronics and SK hynix.
Global market growth
The global picture is also improving. Market research firm Global Market Insights forecasts the world's semiconductor plant construction market will expand to $59.3 billion this year from $47.2 billion last year, reaching $85 billion by 2035. As investment grows across the United States, the Middle East, and Asia, demand for related construction materials is expected to follow.
Domestic firms are positioning themselves for the upturn. Deokshin EPC supplied deck plate to a U.S. semiconductor plant in June, pushing into overseas markets. Despite weak earnings, it raised its R&D spending ratio to 1.07 percent of sales last year from 0.93 percent in 2024. Winhitech developed a new deck plate product in March that enhances construction safety, shortens build time, and cuts costs, targeting the semiconductor and data center markets.
For construction professionals tracking AI for Real Estate & Construction, the trend signals where material demand is heading.
Why this matters for real estate and construction
"Because semiconductor plants and AI data centers apply large-scale steel-frame structures, deck plate demand steadily arises to shorten construction periods and secure safety," a deck plate industry official said. "If construction of semiconductor fabs and AI data centers at home and abroad expands, there is a strong possibility the industry's earnings will turn around."
For builders and suppliers, the takeaway is concrete: chip and data center projects carry higher material intensity than standard commercial builds. Firms that have weathered the downturn by cutting costs should watch for tender activity tied to semiconductor facility investment - that is where the next cycle of work is forming.
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