(Photo: iStock)
Taiwan announced the winning bids for Block 3-2 of its offshore wind power zones on July 9, with Shinfox Energy securing the top spot, followed by Synera Renewable Energy, and Ørsted. Market speculation before the announcement suggested Shinfox's strong focus on domestic production boosted its chances, leading to a surge in stock prices.
Driven by government initiatives, Taiwan's offshore wind power sector is providing opportunities for local manufacturers. Major stainless steel and cable manufacturer Walsin Lihwa has partnered with Denmark's NKT Group to establish Taiwan's first and currently only submarine cable manufacturing facility, slated for operation by 2027. Despite the anticipated timeline, Walsin Lihwa is eyeing the Asia-Pacific green energy market spurred by trends in data centers and electric vehicles.
Walsin collaborates with Denmark's NKT to establish the first submarine cable factory
Justin Wong, COO of Walsin Energy, a joint venture with NKT, expressed openness to expanding into the Asia-Pacific region, especially as renewable energy becomes pivotal over the next decade. However, specific plans beyond Taiwan are currently under discussion.
Reports indicate optimistic prospects for offshore wind power across Taiwan and other Asia-Pacific countries like China, Japan, South Korea, and Vietnam, with commitments to add approximately 263 GW of electricity capacity by 2050, surpassing commitments across the entire Americas.
Last year, Walsin Lihwa announced a collaboration with NKT HV Cables AB, one of the world's top three submarine cable manufacturers, to establish a factory in Kaohsiung, scheduled for trial operations by 2025 and full production by 2027.
(Photo: Walsin Lihwa)
Walsin strives to become a top-tier supplier as submarine cables shortage
As demand for submarine cables outstrips supply, Walsin aims to become a top-tier supplier. With over 50 years of experience in land-based cables, the transition to offshore wind turbines necessitates durable cables capable of withstanding harsh environments, a niche occupied by few, including Denmark's NKT, France's Nexans, and Italy's Prysmian.
Wong highlighted the critical shortage of submarine cables amid rising deployments of power-hungry data centers and electric vehicles. Despite capacity expansions by European, South Korean, and Japanese manufacturers, the market remains undersupplied.
As one of Taiwan's few domestic suppliers in the offshore wind power supply chain, Walsin Lihwa's primary focus is meeting local demand while striving to cultivate local suppliers in Taiwan. Wong emphasized the challenge of talent shortage, indicating plans to send employees to Europe for training to align Taiwan's capabilities with international standards.
Source: Nikkei Asia, Walsin Lihwa
