Daehan Cable Completes Acquisition of Incab America: Accelerating Entry into Power and Optical Communication Markets Driven by AI Data Centers

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Daehan Cable is accelerating its expansion into the North American infrastructure market by securing a local production base for optical cables in the United States. On May 6, the company announced that it had completed the acquisition of Incab America LLC, a U.S.-based optical fiber cable manufacturer, through its wholly owned subsidiary TFO Networks. With this acquisition, Daehan Cable has established a foundation to respond to the increasing demand for power and telecommunications infrastructure in North America, driven by the spread of artificial intelligence (AI) data centers.

TFO Networks had previously signed a stock purchase agreement (SPA) in January of last year to acquire an 88.5% stake in Incab America. Since then, the company has proceeded with the acquisition process after securing approval from the Committee on Foreign Investment in the United States (CFIUS), and with the latest agreement, it has acquired an additional 1.5% minority stake, securing a total of 90% ownership.

Incab America is an optical fiber cable manufacturer with production facilities located in Grapevine, Texas. The company produces a wide range of products, including optical ground wire (OPGW), all-dielectric self-supporting (ADSS) cables, as well as cables for duct installation, indoor and outdoor use, flame-retardant, sensing, and specialty cables. These products are supplied to a broad array of sectors, including electric utilities and telecommunications operators, as well as railways, oil and gas, petrochemical, and mining and metal industries.

In particular, OPGW and ADSS are integrated cables that enable the simultaneous construction of power and communication networks. OPGW provides lightning protection and communication functions on transmission lines, while ADSS cables are installed independently across transmission and distribution sections. As the spread of AI data centers drives concurrent increases in demand for both power grid expansion and optical communication network construction, the utilization of these product lines is expected to rise further.

Recently, major big tech companies such as Amazon, Microsoft, Google, and Meta have been ramping up investments in large-scale data centers and cloud infrastructure in response to the growing demand for AI computing in the United States. Related projects are underway in several regions, including Texas, Louisiana, Indiana, Ohio, and Pennsylvania, leading to a rapid increase in the need for expanded infrastructure such as transmission networks, substations, and optical communication networks.

Additionally, the U.S. government's Broadband Equity, Access, and Deployment (BEAD) program for expanding high-speed internet infrastructure is considered an important opportunity. This program involves substantial subsidies for broadband infrastructure construction, and under the Build America, Buy America (BABA) provisions, the use of products manufactured in the United States is required.

Incab America, based on its production facility in Texas, has established a supply system capable of meeting these BABA requirements. Through this acquisition, Daehan Cable has secured both local production and supply capabilities in the United States, moving beyond its previous export model centered on domestic production. Furthermore, synergies are anticipated from the combination of TFO Networks' expertise in power lines and aluminum materials, Daehan Cable's technology in optical fiber and cable, and Incab America's local production and sales base.

A company representative stated, "This acquisition marks a turning point for securing a production base in the United States and expanding into the North American market," adding, "We will strengthen our global competitiveness by responding to the increasing demand for power and optical communication infrastructure driven by AI data center expansion and execution of the BEAD program."

This acquisition is significant as it enables Daehan Cable to secure a local production base in the United States and actively expand into the North American infrastructure market, particularly with a focus on power and telecommunications integrated cables.

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