HD Hyundai Electric 獲得更多 SK hynix 電力設備訂單

A rendering of SK hynix's P&T7 facility in Cheongju. (Photo: SK hynix)

HD Hyundai Electric will supply power equipment, including high-voltage switchgear and transformers, for SK hynix's new semiconductor manufacturing facilities. Additional orders are expected as domestic investment accelerates amid a boom in artificial intelligence (AI) semiconductors.

According to industry sources on Oct. 26, HD Hyundai Electric began installing power equipment at SK hynix's new production facilities in Cheongju this month. The project primarily involves supplying extra-high-voltage switchgear and transformers to the P&T7 and Mask Fab facilities, which SK hynix is building to expand production capacity for high-bandwidth memory (HBM) and other AI memory products.

HD Hyundai Electric has also secured orders for high-voltage switchgear and cast-resin transformers for support facilities at SK hynix's Y1 fab in the Yongin Semiconductor Cluster. The company previously supplied switchgear, transformers and gas-insulated switchgear (GIS) to major SK hynix facilities, including M15 in Cheongju and M16 in Icheon. Its current P&T7 project in Cheongju is scheduled to run through July 2027, while the Yongin project is expected to continue through December 2027.

Semiconductor fabs consume enormous amounts of electricity. Because numerous production systems must operate around the clock, securing reliable power and water supplies is essential to fab construction. Even minor disruptions in electricity supply can damage wafers during production, making stable power management critical.

Securing sufficient electricity alone is not enough if it cannot be properly distributed throughout a fab. Transformers adjust incoming high-voltage electricity to levels suitable for production equipment, while switchgear distributes power to individual facilities. When abnormal currents occur, switchgear can isolate the affected section, preventing damage from spreading to other production equipment.

HD Hyundai Electric is expected to secure additional orders as SK hynix plans large-scale investments in domestic semiconductor manufacturing facilities. Compatibility and reliability are particularly important because fab power infrastructure operates alongside production equipment over extended periods. Switching suppliers would require renewed verification that new power equipment can operate reliably with existing systems. Given HD Hyundai Electric's history of supplying major SK hynix fabs, replacing it with another supplier may prove difficult.

In August, SK hynix decided to invest 35.2 trillion won in its second Yongin fab, Y2, and 19.1 trillion won in its Cheongju M17 facility. The company plans to complete four fabs in Yongin by 2033. In June, it also outlined plans to develop a new semiconductor cluster worth 400 trillion won in the Honam region. Each new manufacturing facility will require substantial power infrastructure, generating further orders for electrical equipment.

Semiconductor fabs are not the only source of demand HD Hyundai Electric is capturing from expanding AI investment. Data centers that use AI semiconductors also consume enormous amounts of electricity, driving investment in transformers, switchgear and other power equipment. The company has also secured major power equipment orders for data centers in North America.

In July, HD Hyundai Electric signed a long-term supply agreement worth up to 1.1212 trillion won with a global technology company. Under the agreement, it will supply 553.9 billion won worth of distribution equipment and 567.3 billion won worth of power equipment to data centers the customer is building in North America, with deliveries beginning in 2028. The company is also expanding manufacturing capacity to meet growing demand. It began construction of a second plant in Alabama in March and plans to increase its extra-high-voltage transformer production capacity by 50% by April 2027.

Growing orders are expected to push earnings to record levels. According to financial data provider FnGuide, the consensus estimate for HD Hyundai Electric's third-quarter operating profit is 305 billion won, up 23.4% from a year earlier. If the forecast is met, quarterly operating profit will exceed 300 billion won for the first time, while cumulative operating profit for the first nine months will surpass 800 billion won. The prospect of annual operating profit reaching 1 trillion won for the first time is also increasing.