NKTโWalsin Taiwan Offshore Cable Venture
NKTย plans a joint venture withย Walsin Lihwaย to back Taiwanโs first subsea power cable plant. The factory will produce highโ and mediumโvoltage AC offshore cables mainly for Taiwanese offshore wind projects, a market that should expand quickly over the next decade. NKT will hold a minority stake and serve as the technical partner in the venture.
The deal also includes a service agreement to help design and build the factory. In addition, NKT will license its cable technology to the joint venture. Once the plant starts full operation, expected in 2027, NKT will earn royalties and dividends, subject to regulatory approvals.
Kaohsiung Submarine Cable Plant and WECS
The partners will createย Walsin Energy Cable System Co. Ltd. (WECS)ย to build and run the Kaohsiung Submarine Cable plant. Walsin will own 90% of WECS, and NKT will own the remaining 10%. The factory will focus on highโvoltage export cables and mediumโvoltage AC cables for offshore wind power. It plans trial runs by late 2025 and full production by 2027.
Taiwan aims to install another 15 GW of offshore wind by 2035. Therefore, it needs a stronger local cable supply chain. By producing cables in Kaohsiung, WECS can shorten lead times, reduce import dependence, and support developers across Taiwanโs offshore wind rounds.
Strategic Benefits for NKT and Walsin Lihwa
NKT President and CEO Alexander Kara expects strong growth in the Asian offshore wind market over the coming decades. He noted that this joint venture gives NKT a practical way to serve a new regional market that is hard to reach from Europe. The project also marks an important first step in building NKTโs presence in Asiaโs highโ and mediumโvoltage cable sector.
Walsin Lihwa Chairman YuโLon Chiao pointed out that Taiwan has excellent wind resources and major opportunities in offshore wind and submarine cables. He said Walsin feels honored to partner with NKT in a deal that supports both companiesโ cleanโenergy strategies and advances Taiwanโs greenโenergy goals.
