The rapid expansion of offshore wind energy is reshaping the global power cable industry. One of the most significant recent developments in this transformation is NKT’s decision to establish Taiwan’s first offshore power cable manufacturing facility, a move that reflects both rising regional demand and the increasing technical complexity of offshore power transmission systems.

This investment is not merely an expansion of production capacity. It represents a strategic shift toward localized, high-specification manufacturing designed to support the next phase of offshore renewable energy development in Asia.

Offshore Wind Energy and the Growing Role of Power Cables

Offshore wind has become a cornerstone of global renewable energy strategies. Compared with onshore wind, offshore projects offer higher wind speeds, greater consistency, and the ability to deploy significantly larger turbines. As a result, offshore wind farms can generate substantially higher energy output per installation.

However, the success of offshore wind projects depends heavily on the reliability of submarine power cable systems. These cables are responsible for transmitting electricity from offshore turbines to onshore substations, often over long distances and under harsh marine conditions.

As offshore wind farms move further from shore and increase in capacity, power cable systems face growing technical and operational challenges.

Why Taiwan Has Become a Key Offshore Wind Hub

Taiwan has emerged as one of the most important offshore wind markets in Asia. Several factors contribute to this position.

First, strong government support has created clear long-term renewable energy targets, encouraging large-scale offshore investment. Second, favorable maritime conditions make offshore wind technically viable and economically attractive. Third, rising domestic energy demand has increased the urgency of diversifying power generation sources.

As offshore wind capacity grows, the need for a reliable, localized supply chain becomes increasingly important. Heavy submarine power cables are difficult and costly to transport over long distances, and delays in cable delivery can significantly impact project timelines.

NKT’s decision to build an offshore power cable factory in Taiwan directly addresses these challenges.

Technical Requirements of Offshore Power Cable Systems

Offshore power cables are among the most demanding products in the cable manufacturing sector. Unlike standard land-based cables, offshore cables must operate continuously in aggressive marine environments for decades without failure.

High Voltage Transmission Stability

Offshore wind farms generate large amounts of electricity that must be transmitted efficiently to onshore grids. Power cables must maintain voltage stability and minimize transmission losses over long distances.

This requires precise conductor design, high-quality insulation materials, and strict control of manufacturing processes. Any inconsistency in insulation thickness or conductor alignment can compromise performance and long-term reliability.

Mechanical Strength and Installation Stress

During installation, offshore power cables are subjected to significant mechanical stress. They must withstand bending, tension, and compression as they are laid on or buried beneath the seabed.

After installation, cables continue to experience dynamic forces caused by currents, seabed movement, and thermal expansion. Designing cable structures that can absorb these stresses without degradation is a major engineering challenge.

Environmental Resistance and Longevity

Saltwater corrosion, temperature fluctuations, and biological activity all pose long-term risks to offshore power cables. Protective sheathing, armoring layers, and material selection must be optimized to ensure durability throughout the cable’s operational life.

Given the high cost and complexity of offshore repairs, long-term reliability is a critical requirement.

Manufacturing Challenges Behind Offshore Power Cables

Producing offshore power cables requires far more than scaling up conventional cable manufacturing processes. Precision and process stability are essential at every stage.

Manufacturers must maintain tight tolerances during conductor stranding, insulation extrusion, and sheathing. Even minor deviations can accumulate over long cable lengths and affect performance.

Advanced production equipment is necessary to ensure stable extrusion conditions, consistent curing, and precise layer alignment. Comprehensive testing systems are also required to verify electrical, mechanical, and environmental performance before deployment.

As offshore projects increase in scale and voltage level, manufacturing complexity continues to rise.

Why Local Manufacturing Creates Strategic Advantages

By establishing an offshore power cable factory in Taiwan, NKT aims to create a localized manufacturing hub capable of supporting regional offshore wind projects more efficiently.

Local production offers several advantages. Shorter supply chains reduce transportation risks and costs. Proximity to project sites allows for better coordination between manufacturing, testing, and installation schedules. Quality control processes can be more closely aligned with project-specific requirements.

Localized manufacturing also supports the development of skilled labor and long-term industrial capability, strengthening the regional energy infrastructure ecosystem.

Impact on the Regional and Global Cable Industry

NKT’s investment reflects a broader shift in the global cable industry toward regionalized, specialized production. As energy infrastructure projects become more complex and time-sensitive, developers increasingly prefer suppliers with local manufacturing capabilities and technical expertise.

This trend is reshaping how cable manufacturers plan capacity expansion and technology investment. Rather than focusing solely on centralized global facilities, companies are building regional hubs tailored to specific applications such as offshore wind.

For the industry as a whole, this shift raises the bar for technical capability, process control, and long-term reliability.

Offshore Power Cables as Critical Energy Infrastructure

Offshore power cables are not auxiliary components. They are core infrastructure that determines the viability and performance of offshore renewable energy projects.

As global energy systems transition toward cleaner sources, the demand for high-performance offshore power cable solutions is expected to grow steadily. Projects will move into deeper waters, higher capacities, and more challenging environments, further increasing technical requirements.

Manufacturers that can deliver consistent quality under these conditions will play a central role in the global energy transition.

Long-Term Outlook

The establishment of Taiwan’s first offshore power cable factory marks an important step in the evolution of Asia’s renewable energy supply chain. It highlights the increasing recognition that cable manufacturing is a strategic capability, not just a supporting function.

As offshore wind development accelerates across the Asia-Pacific region, investments in advanced cable manufacturing facilities are likely to continue. Precision manufacturing, stable processes, and long-term reliability will remain the defining factors of success.

NKT’s move signals confidence in the long-term growth of offshore wind energy and underscores the essential role of offshore power cables in building a resilient, sustainable energy future.