Walsin Lihwa, Taiwan’s largest stainless steel producer, is set to establish the island’s first submarine power cable manufacturing facility in a bid to capitalize on the booming renewable energy sector. This strategic initiative, developed in partnership with Denmark’s NKT Group, will operate under the joint venture Walsin Energy Cable System.
The facility, located in Kaohsiung, will commence test production in late 2025, with full-scale production anticipated by 2027. The plant aims to support Taiwan’s ambitious plan to expand offshore wind capacity from 2.25 gigawatts to over 20 gigawatts by 2035.
Justin Wong, COO of Walsin Energy, highlighted the critical need for local cable supply to meet the burgeoning demand driven by global renewable energy projects. “The industry worldwide is experiencing a cable shortage as the demand for offshore wind farm construction soars,” Wong stated in an interview to Nikkei.
Walsin Lihwa, with over five decades of experience in terrestrial power cables, seeks to address this gap by focusing initially on the Taiwanese market, a key player in Asia’s wind energy landscape. The Kaohsiung facility is poised to become a pivotal hub, potentially expanding its reach to other Asia-Pacific markets.
Despite the anticipated local benefits, the project faces challenges, including a shortage of specialized talent in Taiwan. To bridge this gap, Walsin Energy plans to train personnel in Europe through its collaboration with NKT.
This development aligns with Taiwan’s broader energy transition strategy, which includes phasing out nuclear power and increasing the share of renewables. As Taiwan gears up for this shift, the local production of submarine cables will be crucial in securing the energy supply necessary for future technological and industrial growth.
