[Market Focus] Taihan Fiberoptics Surges on Expectations of Soaring Demand

As of 9:30 a.m. on October 15, shares of Taihan Fiberoptics were trading at 1,450 won on the KOSDAQ market, up 12.23% from the previous closing price. This appears to be due to expectations of improved earnings driven by rising global demand for optical cables.

Taihan Fiberoptics is the only company in Korea with an integrated production system for optical fiber and optical cables, focusing on manufacturing communications and power cables. The company is also expanding its materials, components, and equipment business, as well as its specialty optical fiber business, as part of efforts to foster key national industries.

According to the securities industry, demand for optical cables is expected to surge alongside the global expansion of artificial intelligence (AI) infrastructure. In the United States, the government is preparing to launch the "Broadband Equity, Access, and Deployment (BEAD) Program," which will invest approximately 62 trillion won to build an ultra-high-speed broadband network.

Earlier this year, Taihan Fiberoptics signed a contract to acquire an 88.5% stake in Incab America, a U.S. cable manufacturer, and in August, it obtained approval from the Committee on Foreign Investment in the United States (CFIUS), which was required to complete the acquisition.

Incab America produces a variety of products, including OPGW (Optical Ground Wire), ADSS (All-Dielectric Self-Supporting) cables, FTTH cables, and fire-resistant cables. With this acquisition, Taihan Fiberoptics will be able to directly supply its products to both public and private projects in the United States.