Record Revenue with Energy Storage and Optical Communications as Key Growth Drivers
Lien Kang Tong, a subsidiary of the Taiwan Steel Group, achieved a first-half revenue of NT$816 million this year, marking a 38.8% year-on-year increase and setting a recent high. Chairman Lin Yu-chang stated that since the Taiwan Steel Group took over, the company has shifted its operational focus toward a healthier, diversified structure. Traditional engineering services currently account for approximately 60% of total revenue, serving as a stable source of cash flow. Lien Kang Tong has identified infrastructure, smart grids, and optical communications as its three core businesses, with plans to bring new production lines online as early as the end of this year.
In the smart grid sector, Lien Kang Tong has actively responded to the government’s "energy storage for the public" policy. In 2024, the company completed the first phase of an energy storage project at Ching Hsin Hsin Steel in Changhua, resulting in annual electricity cost savings of approximately NT$8.5 million and an estimated payback period of five to six years. Subsequent energy storage systems were installed at Yi Sheng Steel in Tainan and Chun Yu Factory in Kaohsiung. In June of this year, Lien Kang Tong secured the first batch of subsidies for "domestically produced battery cells," totaling NT$200 million. On July 6, the company completed the 100% acquisition of Taiwan Steel Energy, officially making energy storage a core development priority.
General Manager Lai Hao-min noted that Lien Kang Tong is currently focused on Taiwan’s behind-the-meter energy storage market and will explore international expansion based on market developments. He emphasized that the benefits of energy storage are gradually materializing, and the company plans to further develop AI data centers to meet the demands of high-energy-consuming industries. Additionally, Lien Kang Tong’s investments in Taiwan Steel Engineering and Taiwan Steel Construction have secured multiple industrial, residential, and commercial development projects in recent years, providing a steady cash flow for the company.
Optical Communications Shifts to High-Value Customized Products, Targeting AI Data Center Opportunities
Facing a saturated global optical fiber market and competitive pressure from low-cost Chinese products, Lien Kang Tong has decided to transition toward high-value "customized optical fiber" products, targeting the surging demand driven by AI data centers. Lin Yu-chang stated that global optical fiber production capacity has long been dominated by China and Japan, leading to a supply shortage in the market. The Taiwan Steel Group is evaluating a plan for domestic optical fiber production, aiming to master four key technologies: optical fiber cables, optical communication components, system integration, and high-speed optical transmission.