The construction of the 1st subsea power cable factory in Taiwan is expected to be operational in 2027. A joint venture between Walsin Lihwa and NKT to support construction of 1st offshore power cable factory in Taiwan
NKT, a Danish leading cable supplier in the energy sector, will produce high-voltage and medium-voltage AC offshore power cables for the offshore wind market in Taiwan. The first subsea power cable factory is supported with R&D, energy efficiency, and innovation of Walsin Lihwa, along with strategic focus, sustainability, and innovation by NKT.
With this green transition, the country is expected to speed up. The deal between Walsin Lihwa (a publicly listed leading Taiwanese conglomerate) and NKT also includes a Service Agreement for factory construction and a Technology License Agreement under which NKT technology will be licensed for the joint venture.
NKT will provide technical support and will own a share in this joint venture. However, CAPEX investment from the company is not included in the agreement thus, will not be a part of this joint venture. Based on the royalty scheme and divided, the technical support partner (NKT) will generate revenue after the company is set to work in 2027.
Alexander Kara, President, and CEO, of NKT, said, “We expect high growth in the Asian market in the coming decades. Taiwan is targeting to install an additional 15GW of offshore wind by 2035. The joint venture is an attractive opportunity for NKT from a financial perspective and an opportunity for us to participate in a new, growing market, which is otherwise challenging to serve. It is an important first step for NKT to establish a presence in the Asian high- and medium-voltage market and a platform for future growth in the region.”
Yu Lon Chiao, Chairman of Walsin Lihwa, said, “Taiwan is blessed with an abundance of wind resources, presenting vast commercial opportunities in offshore wind power and submarine cable. Walsin is honored to enter into a win-win partnership with NKT, a world-class cable solutions provider with leading technology, to further our clean energy strategy and contribute towards Taiwan’s green energy future.”
The final constitution of this joint venture is subjected to customary regulatory procedures. With wire and cables as its core business segments, the company is devoted to environmental protection along with its growth in an environmental-friendly manner. With the recent closure of the first offshore wind auction by the Taiwanese government under its Round 3 Zonal Development Plan, the government selected 7 new offshore wind projects to move forward to realization.
These Round 3 offshore wind tenders in Taiwan are procuring projects development for wind farms that are set to go online from 2026 to 2035. With these projects, a capacity of 15 GW is expected to be added. With already 128 MW of operational capacity across two demonstrational projects in the country, the first phase of Round 3 auctions will be operational in 2026 or 2027. A joint venture between Walsin Lihwa and NKT to support construction of 1st offshore power cable factory in Taiwan.