Taiwan gets first subsea cable factory as NKT boosts island's offshore wind ambitions

Taiwan will get its first subsea power cable factory in another signal of confidence in the island’s fast-growing offshore wind sector.

Global cabling giant NKT will help set up the plant in a joint venture with local conglomerate Walsin Lihwa, with first production expected from 2027.

The factory will make high- and medium-voltage AC cables “mainly for the Taiwanese offshore wind market. This is expected to grow rapidly in the next decade to drive the green transition of the country”, said a statement announcing the plan.

The island’s government has set ambitious local content goals for the emerging industry – sometimes prompting pushback from the sector – as it seeks to reap industrial benefits.

“We expect high growth in the Asian market in the coming decades. Taiwan is targeting to install 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 presence in the Asian high- and medium-voltage market and a platform for future growth in the region,” said NKT CEO Alexander Kara.

NKT will license its technology and provide technical support for the plant, but the Denmark-based cabling group will not make a capital investment in the factory’s construction.