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An aerial view of the Gaon Cable Gunpo plant. / Photo courtesy of Gaon Cable

Gaon Cable announced on July 15 that it has supplied tens of billions of won worth of power distribution cables to SK Hynix's Yongin Semiconductor Cluster. The company is evaluated to be strengthening its penetration into the related market by expanding its power infrastructure supply to major domestic semiconductor production facilities.

Gaon Cable is broadening its business foundation in semiconductor power infrastructure by expanding its supply from SK Hynix's existing Icheon and Cheongju plants to the Yongin cluster. Based on this, the company plans to aggressively target demand for new fab construction as well as the expansion and replacement of existing production facilities in the domestic market.

The company stated that it is negotiating an additional supply worth tens of billions of won for the second half of the year and is also seeking to participate in power infrastructure projects for semiconductor manufacturing facilities pushed by U.S. companies.

Power distribution cables are key electrical equipment that supply power to production lines and processing facilities. Since semiconductor factories consume massive amounts of power 24 hours a day, a continuous demand for power distribution cables arises not only for building new fabs but also for expanding existing production facilities and replacing aged cables.

The power infrastructure market is expected to expand rapidly as semiconductor clusters are being pushed in the Honam region and investments continue in the United States. Gaon Cable is expanding its push into domestic and international power infrastructure markets based on its capability as the leader in the domestic power distribution cable market and its synergy with LS Cable & System.

"A semiconductor production facility is in itself a massive power infrastructure site," said Jung Hyun, CEO of Gaon Cable. "Based on the supply track record and technical capabilities we have accumulated domestically, we will expand our business into global semiconductor power infrastructure markets, including the United States."

                                                                                                            Kim Young-jin