[Alpha Biz= Kim Jisun] Hyosung Heavy Industries has secured a landmark contract worth ₩787 billion to supply ultra-high-voltage transformers and reactors to a major U.S. transmission system operator, marking the largest single order in the company’s history. The deal is also the biggest single-project order ever won by a Korean power equipment manufacturer in the U.S. market.

The agreement underscores how Korea’s power equipment industry—alongside semiconductors—is benefiting from the artificial intelligence (AI) boom. Rapid expansion of AI data centers has driven a surge in demand for power grid infrastructure, while aging equipment replacement cycles have converged to create what industry observers describe as a full-fledged supercycle.

According to the Korea International Trade Association, the share of Korean-made transformers exported to the United States jumped from 27.8% in 2022 to 46.2% last year. Industry sources estimate that HD Hyundai Electric captured the largest share of the U.S. transformer market in 2024, with a market share in the high teens to around 20%, helping the company surpass ₩4 trillion in annual revenue for the first time.

The spike in demand is largely driven by AI data centers, which consume three to ten times more electricity than conventional facilities and require high-specification power equipment to manage and stabilize loads. As a result, major Korean players including Hyosung Heavy Industries, HD Hyundai Electric, and LS Electric have already secured three to four years’ worth of orders, with combined order backlogs totaling approximately ₩27 trillion.

The boom is also extending to the cable industry, a critical component of power transmission infrastructure. LS Cable & System disclosed on Monday that it has won a ₩686.5 billion contract to supply underground and subsea ultra-high-voltage cables to a U.S. customer.

Leveraging high quality standards and reliable delivery capabilities, Korean power equipment and cable manufacturers are rapidly expanding their footprint in the U.S. market, positioning themselves as key beneficiaries of the AI-driven energy infrastructure expansion.

 

 

 

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