News / Taiwan / economic_daily
Shihlin Electric Sees T4 Plant Capacity Fully Booked by North American AI Demand
Producer Manufacturing · Electrical Products · economic_daily · 2026-09-10
1503
Shihlin Electric's upcoming T4 plant is already fully booked by North American clients as AI data center demand drives a surge in heavy electrical equipment orders.
What Happened
Surging North American Demand: North American demand for AI-related power infrastructure has reached a fever pitch, with Shihlin Electric reporting that orders for large transformers are already extending five years into the future. Clients are aggressively securing capacity at the upcoming T4 plant, with single-order volumes exceeding ten units, underscoring the massive scale of AI data center construction.
Pricing and Cost Management: Facing rising costs for copper, oil, and other raw materials, Shihlin Electric has already implemented a price hike for transformers in March and is currently planning further increases. The company's strong market position allows it to effectively pass these rising costs on to customers amid a supply-constrained environment.
Expansion and Production: The T4 plant is scheduled to begin production in September next year, with revenue contributions expected by 2028, increasing total heavy electrical capacity by 30%. The facility will focus on high-voltage, large-capacity transformers, prioritizing domestic demand from Taipower before allocating supply to international markets.
Strategic Partnerships: Shihlin Electric continues to strengthen its relationship with major shareholder Mitsubishi Electric to capitalize on the growing AI data center market in Japan. Despite the planned capacity expansion, the company warns that lead times for heavy electrical equipment are unlikely to shorten in the near term due to sustained global demand.