Competing for the Asia-Pacific Green Energy Market! Why Did Walsin Lihwa Choose Denmark's NKT for Offshore Cable Manufacturing?

Taiwan’s Offshore Wind Development: Latest Project Awards

On July 9, Taiwan’s offshore wind sector announced the winners of the Round 3-2 development phase. The top-ranked project was the Youde Wind Farm by Sunwell Energy, followed by the Haiguang Wind Farm by Fengrui Energy, and in third place, Ørsted’s Greater Changhua Northeast Wind Farm. With strong government support, Taiwan’s offshore wind industry has opened significant opportunities for domestic players. Among them, stainless steel and cable manufacturing giant Walsin Lihwa has seized the business opportunity and entered the sector.

Walsin Lihwa Partners with Denmark’s NKT to Establish Taiwan’s First Submarine Cable Plant, Targeting 2027 Operations

Walsin Lihwa has partnered with Denmark’s cable giant NKT to establish Taiwan’s first and currently only submarine cable manufacturing plant. Although the factory is expected to commence full operations in 2027, company executives acknowledge that, with the rapid expansion of data centers and the electric vehicle (EV) boom, they are already eyeing the Asia-Pacific green energy market.

Justin Wong, Chief Operating Officer of Walsin Energy Cable System, the joint venture between Walsin Lihwa and NKT, stated in an interview with Nikkei Asia that expanding into the broader Asia-Pacific market is a possibility they will not rule out. He emphasized that renewable energy will be a key sector for the next decade, saying:"We have already discussed market expansion with NKT, but no concrete plans have been made at this time."

Walsin Lihwa announced in 2023 its collaboration with NKT HV Cables AB, one of the world’s top three submarine cable manufacturers, to set up a factory in Kaohsiung, Taiwan. The facility is expected to be completed and enter trial operation by 2025, with full-scale production beginning in 2027.

Reports indicate that Taiwan, along with Mainland China, Japan, South Korea, and Vietnam, views offshore wind power as a promising industry, investing heavily in its development. These nations have collectively committed to adding approximately 263 GW of new offshore wind capacity by 2050—surpassing the entire pledged capacity of the Americas.

Submarine Cable Shortages: Walsin Aims to Become a Tier-1 Supplier

With over 50 years of experience in terrestrial cables, Walsin Lihwa faces a new challenge in offshore wind power: transmitting electricity from offshore turbines to the mainland via high-performance submarine cables. These cables must be highly durable and capable of withstanding extreme environments, which is why only a handful of companies globally have earned Tier-1 supplier status—including Denmark’s NKT, France’s Nexans, and Italy’s Prysmian.

Justin Wong highlighted that the growing demand for energy-intensive data centers and EVs is exacerbating a severe shortage of submarine cables. Even as European, South Korean, and Japanese manufacturers continue expanding capacity, the market remains undersupplied.

As one of the few Taiwanese companies in the offshore wind supply chain, Walsin Lihwa prioritizes meeting Taiwan’s domestic market needs. Wong also expressed hope that Taiwan could develop local suppliers but acknowledged that Taiwan’s offshore wind industry still lacks expertise.

To address this talent gap, Walsin is working with NKT to send employees to Europe for training, ensuring Taiwan’s industry integrates more rapidly with global standards.

Translated From: 爭奪亞太綠電市場！華新麗華跨足離岸風電，為何挑中丹麥NKT海纜廠合作投產？ | 新聞 | Reccessary