{
  "id": 2095037,
  "title": "[Insight] Hyosung Heavy Industries Turns U.S. Power Bet Into an AI Infrastructure Advantage",
  "url": "https://urgent.news/2026/08/20/insight-hyosung-heavy-industries-turns-u-s-power-bet-into-an-ai",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-20T07:56:50.000Z",
  "source": {
    "name": "Korea IT Times",
    "slug": "korea-it-times",
    "url": "https://www.koreaittimes.com/news/articleView.html?idxno=156307"
  },
  "original_language": "en",
  "account": "Hyosung Heavy Industries is capitalizing on the global AI infrastructure boom, as the surge in electricity demand transforms transformers and grid equipment into crucial components of the data center supply chain. In the past, the company was known for industries such as spandex and tire cord, but today, ultra-high-voltage transformers and power equipment are playing a significant role in its growth strategy. In the first half of 2026, Hyosung secured approximately KRW 7.5 trillion in new heavy industries orders, with North America accounting for 57% of the total. The company's order backlog reached an all-time high of KRW 17.5 trillion by the end of the second quarter. Hyosung's strategic decision to acquire Mitsubishi Electric's ultra-high-voltage transformer plant in Memphis, Tennessee, in 2020 has become increasingly valuable in the AI era. US utilities are facing multiple challenges simultaneously, including the need to replace aging transmission infrastructure, connect renewable generation to the grid, and meet the power requirements of hyperscale AI data centers. Transformers are the link between these three trends. Hyosung's U.S. position is especially relevant in the ultra-high-voltage segment, where it has secured major orders for 765kV transformers. The company's backlog of orders stood at KRW 15.1 trillion at the end of the first quarter, which increased to KRW 17.5 trillion by the second quarter. As AI's infrastructure bottleneck shifts toward electricity, traditional electrical equipment manufacturers are becoming increasingly important within the AI value chain. Hyosung Heavy Industries is situated in this critical part of the value chain, as its second-quarter heavy industries sales benefited from growing U.S. demand, with U.S. sales accounting for 38% of its revenue in the second quarter, up 15 percentage points from the previous year. The company's second-quarter consolidated revenue reached KRW 1.69 trillion, a 10.6% increase year on year, while operating profit jumped 60.9% to KRW 264.3 billion. Hyosung's investment in Memphis demonstrates a broader shift in how Korean manufacturers approach overseas markets. Exporting from Korea used to be an efficient route into global infrastructure markets; however, power equipment is now a business where local manufacturing capacity, delivery times, and relationships with utilities are as crucial as manufacturing technology itself. In July, Hyosung Heavy Industries and U.S. power infrastructure company Quanta Services formed a joint venture to manufacture ultra-high-voltage gas circuit breakers in the United States. This expansion of Hyosung's U.S. localization beyond transformers provides another foothold in critical grid equipment, marking a strategic shift toward establishing a broader local power equipment platform in North America.",
  "summary": "Hyosung Heavy Industries is emerging as one of South Korea’s clearest industrial beneficiaries of the global AI infrastructure boom, as surging electricity demand turns transformers and grid equipment into critical components of the data center supply chain.The shift is significant for Hyosung Group",
  "key_points": [
    "Secured KRW 7.5 trillion in new heavy industries orders in H1 2026, with 57% from North America.",
    "Acquired Mitsubishi Electric's ultra-high-voltage transformer plant in Memphis, Tennessee, in 2020."
  ],
  "editors_take": "Hyosung Heavy Industries' strategic US positioning in ultra-high-voltage transformers and grid equipment is emerging as a key advantage in the AI infrastructure boom, driven by surging electricity demand.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}