Gaon Cable to supply power distribution cables to SK Hynix's Yongin chip cluster

Gaon Cable's Gunpo factory in Gyeonggi Province / Courtesy of Gaon Cable

Gaon Cable, a cable maker affiliated with LS Cable & System, said Wednesday it has supplied several hundred million won worth of power distribution cables to the SK Hynix semiconductor cluster currently under construction in Yongin, Gyeonggi Province, expanding its footprint in the chipmaking industry's power infrastructure supply chain.

The company said the deal builds on its existing supply relationship with SK Hynix's Icheon and Cheongju plants, broadening its business in semiconductor power infrastructure.

Gaon Cable said it plans to use this base to pursue demand tied to new fabrication plant construction as well as expansions and replacements at existing production lines in Korea.

The company said it is also discussing several hundred million won worth of additional supply contracts for the second half of the year, and is pursuing a role in a power infrastructure project for a semiconductor plant being built by a U.S. company.

Distribution cables deliver electricity to production lines and process equipment. Because chip plants run around the clock and draw large amounts of power, they generate steady demand not only from new construction but also from expansions and the replacement of aging cables at existing sites.

That market is expected to keep growing as a new semiconductor cluster takes shape in Korea's Honam region and U.S. investment continues.

Gaon Cable said it is expanding in both domestic and overseas power infrastructure markets, drawing on its position as Korea's top distribution cable maker and synergy with LS Cable & System.

"A semiconductor plant is itself a massive power infrastructure site," Gaon Cable said.

"We plan to expand into the U.S. and other global semiconductor power infrastructure markets, building on the supply experience and technology we've accumulated at home."

This article was published with the assistance of generative AI and edited by The Korea Times.