According to Korean news, LS Cable & System (LS C&S), a South Korea-based leading cable manufacturer, announced on Apr. 20 that it will receive investment tax credits of 136 billion won ($98.62 million) from the United States federal government to build a new submarine cable factory in the country.

LS Cable & System said its USA subsidiary, LS Greenlink USA, has been selected as one of the recipients of investment tax credits from the U.S. Department of Energy (DOE).

The United States Department of Energy (DOE) announced on Friday Apr. 19 that LS GreenLink USA Inc., a USA subsidiary of LS C&S, secured a tax credit amounting to nearly $99 million for its investment in the new submarine cable factory under Section 48C of the U.S. Inflation Reduction Act (IRA),  known as the Qualifying Advanced Energy Project Credit Program (48C).

Under Section 48C of the IRA, the DOE will provide a total of $10 billion (about 13.79 trillion won) for green energy and carbon neutrality-related projects. This will benefit more than 100 projects in renewable energy, electric vehicle supply chain, and manufacturing and recycling of critical resources such as rare earth.

LS Cable & System anticipates this support will expedite its investment in the US subsea business. The company is currently in the final stages of reviewing the site and the scale of investment for its high-voltage submarine power cable factory in the United States.

The U.S. is experiencing a surge in cable demand driven by artificial intelligence (AI) development, the establishment of semiconductor and electric vehicle factories, and the modernization of its aging power grid. This growth trajectory will solidify the country’s position as one of the three largest markets globally, alongside Europe and China. Currently, there is only one European company operates a submarine cable factory in the United States.

LS Cable & System anticipates leveraging its early entry into the U.S. market to gain a significant competitive advantage while exploring opportunities to build submarine cable plants in Europe and Vietnam as well as in the United States.

Recently in this March, LS Cable & System signed a preferred supply agreement with Copenhagen Infrastructure Partners (CIP) for the supply of offshore and onshore cables to Feng Miao 1, the company's third offshore wind project in Taiwan. Under the agreement, LS Cable & System will supply offshore export cables, inter-array cables, and onshore export cables from their Korean manufacturing facility to the 500 MW Feng Miao 1 offshore wind project in Taiwan. This is the fourth cable supply collaboration between LS Cable & System and CIP’s offshore wind projects in Asia, following Changfang Xidao and Zhong Neng in Taiwan, and Jeonnam Offshore Wind 1 in Korea.

In 2023, LS Cable & System signed a memorandum of understanding (MOU) with PetroVietnam Technical Services Corporation (PTSC), a subsidiary of Vietnam‘s state-owned oil and gas giant PetroVietnam, to collaborate in the submarine cable sector. PTSC has participating in constructing offshore wind farms in southern Vietnam, as part of the government‘s ambitious plan to develop approximately 6 GW of offshore wind farms by 2030.