Korean power equipment giants boost U.S. production to meet AI and grid demand

South Korea's top three power equipment manufacturers are intensifying efforts to expand their production capabilities in the United States. Hyosung Heavy Industries, HD Hyundai Electric, and LS Electric are all strategically increasing their local manufacturing presence to meet the surging demand for power infrastructure.

The primary drivers behind this expansion are the rapid growth of AI data centers, which require substantial amounts of electricity, and the ongoing need to replace aging power grids across the U.S. These factors have created a significant market opportunity for South Korean companies.

Hyosung Heavy Industries, through its U.S. subsidiary Hyosung HICO, has established a joint venture with a subsidiary of Quanta, a prominent U.S. energy infrastructure solutions provider. This collaboration aims to bolster their capacity to supply essential power equipment.

Industry sources indicate that the companies are prioritizing this U.S. expansion to capitalize on the robust demand, ensuring they can effectively serve the American market and maintain their competitive edge in the global power equipment sector.