The global power infrastructure sector is witnessing a sweeping transformation, with governments prioritizing grid resilience and renewable energy integration. In this landscape, Taiwan's power infrastructure development is accelerating, while US demand for Taiwanese manufacturers surges, driven by electricity needs from AI data centers. The combination of policy support and market dynamics is creating sustained demand for suppliers of heavy electrical equipment, wires, and cables.
Before the Lunar New Year, the Legislative Yuan slashed NT$100 billion (US$3.04 billion) in subsidies for Taipower, raising concerns over its financial capacity to maintain residential electricity prices and upgrade power infrastructure. In response, Taipower has allocated NT$62.6 billion in its 2025 budget for net-zero initiatives, focusing on renewable energy projects, energy storage, and smart grid deployment.
Despite funding constraints, industry experts see grid modernization as an unstoppable trend, driven by the ongoing expansion of renewable energy. Since Taipower unveiled its resilience plans, related project tenders have surged, boosting revenues across the sector.
The wire and cable industry stands to benefit from continued government energy policies. Ministry of Economic Affairs data shows the sector's output value reached NT$188.6 billion in the first ten months of 2023, marking a 22.9% increase compared to the same period last year. The industry is on track to hit a record high in 2024, surpassing the NT$202.4 billion peak set in 2011.
Manufacturers such as Taya Cable remain upbeat, citing robust order flow driven by energy transition and infrastructure upgrades. Heavy electrical equipment producers are also scaling up capacity. Chung-Hsin Electric and Machinery Manufacturing expects a 20% annual capacity expansion over the next few years, while Fortune Electric plans a 30-40% yearly increase to meet surging demand.
Beyond Taiwan, firms are eyeing overseas markets, particularly in the US, where AI-driven electricity demand is fueling infrastructure investment. While concerns persist over President Trump's stance on US renewable energy policies, Fortune Electric remains confident that rising power consumption will sustain infrastructure spending.
Despite Taipower's budget cuts, industry leaders see grid upgrades as an irreversible trend, underpinning long-term growth both domestically and abroad.