The growing demand for electricity to boost the AI boom has fired the actions of Sanil Electric, a little known manufacturer of electric transformers in South Korea, in approximately 110 % from the sales wave of the day of liberation in April. This increase in shares has turned Park Dong-Suk, founder and executive director of the company, into the new multimillionaire of South Korea.
Park, 64, who has 55% of Sanil Electric (together with his wife, Kang Eun-Sook), has an estimated assets of 1.2 billion dollars at the close of the Friday stock market.
Based in Ansan, a suburb of Seoul, Sanil Electric manufactures transformers, the essential equipment that modifies the voltage and guarantees the safety of electricity consumption. The company reported that its income increased 56 % year -on -year, reaching 334,000 million wones (240 million dollars) in 2024, while their net income doubled over the previous year, reaching 84,000 million wones.
Sanil Electric declared in a quarterly presentation in May that it provides that the demand for electricity continues data due to the tendency to digitalization of all information ». Citing Data from Business Research Insights, Sanil Electric indicated in the presentation that the global transformers market is expected to grow from 26,000 million dollars in 2021 to 48,000 million dollars in 2031.
More than 60% of his income came from the USA. In January, Ge Vernova commissioned the company for more than 11.4 million dollars. “In the key market of the United States, it is likely that investments in the modernization of the network continue, since the government is implementing a series of policies that should boost the demand for large -scale energy,” said Yunju Cho, a Mirae Asset Securities Research analyst, in a research note published in March.
Cho added in the note that Sanil Electric is expanding its client portfolio in the US, getting contracts with companies such as the Californian public services company PG & e and the Duke Energy electric agency, based in North Carolina, in addition to its current customers Ge Vernova and Tmeic (previously Toshiba Mitsubishi-Electric Industrial Systems). “One of the main strengths of the company is its ability to satisfy with flexibility the various technical requirements of large public service companies (offering transformers in more than 200 different design configurations),” he wrote. “We believe that this capacity positions the company for sustained growth of orders, driven both by the acquisition of new customers and by the expansion of current customer orders.”
Some of the world’s largest companies have aggressively expand the presence of their data centers to boost AI products. On Monday, the billionaire Executive Director of Meta, Mark Zuckerberg, said that his company is on his way to being the first to have a “supercumulus” of data centers with more than one capacity gigavatio, citing the research firm and consulting semiconductors semi -tolysis.
And Elon Musk, the richest man in the world, declared in September that his artificial intelligence company, XAI, completed the construction of a huge data center in Memphis that houses 100,000 NVIDIA H100 chips. “The artificial intelligence processing capacity that is being implemented seems to multiply for ten every six months … Then, it was very easy to predict that the next shortage would be the voltage reduce transformers,” Musk said last year at a conference. «You have to feed these devices. If between 100 and 300 kilovolts are obtained from an electric grid and the tension has to be reduced by up to six volts, that is a considerable reduction ».
Park founded Sanil Electric in 1994 after working on the Korean manufacturer of Yuil Electric electrical equipment. He obtained a master’s degree in Electrical Engineering at the University of Korea in Seoul and a degree at the Technological University of Korea in Siheung, on the outskirts of Seoul. He took his company in July last year, raising 266 billion wones.
This article was originally published by Forbes Us.
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