Chunghwa Telecom to invest NT$4.6B in trans-Pacific fiber-optic cable

Chunghwa Telecom Co, the nation’s biggest telecom, yesterday said it plans to invest more than NT$4.6 billion (US$139.2 million) in a new trans-Pacific fiber-optic submarine cable with global partners, with an aim to boost network resilience and to cope with rising demand from artificial intelligence (AI) applications.

The telecom’s new investment came amid caution over submarine cable security after several cables linked to Taiwan have been sabotaged by foreign freighters or natural causes since the beginning of this year.

The new subsea cable network, dubbed E2A, is to be developed and invested by a consortium that comprises Chunghwa Telecom, SK Broadband Co, Softbank Corp and Verizon Business Global LLC, Chunghwa Telecom said in a statement.

The E2A, spanning 12,500km, would significantly enhance digital connectivity between Asia and North America, providing a robust backbone for AI applications, data centers and cloud services, ensuring high-speed connectivity across the Pacific Ocean as well as intra-Asia, the statement said.

The new submarine cable is scheduled to be ready for service in the second half of 2028, the statement said.

“Chunghwa Telecom will continue to enhance its resilient network infrastructure by integrating submarine cables, fiber optics, mobile communications, satellites and microwave technologies — forming a comprehensive ‘Sea, Land, Sky, and Space’ network,” Chunghwa Telecom chairman Alex Chien (簡志誠) said in the statement.

“Leveraging Taiwan’s strategic position as an Asia-Pacific information hub, we aim to attract international operators to establish a presence in Taiwan, further advancing AI-driven innovations and co-creation services to meet the evolving needs of our customers,” he said.

Crossing the Pacific Ocean, the E2A cable system would connect major digital hubs in Asia and North America, with landings in Yilan County’s Toucheng Township (頭城), South Korea’s Busan, Japan’s Chiba and Morro Bay in California, the statement said.

The cable would also connect with other upcoming cables in Taiwan, such as the SJC2 and Apricot, enabling diverse connectivity options, Chunghwa Telecom said.

This would strengthen Taiwan’s position as a key submarine cable hub in the Asia-Pacific region, it said.

It would further enhance the company’s overall network resilience, in addition to providing sufficient bandwidth to meet demand, it added.

The total cost of the submarine cable would be shared by all parties of the consortium, Chunghwa Telecom said.

The company has so far invested in more than 30 global submarine cables, with about 14 of them landing in Taiwan, it said.

The company has budgeted NT$32.36 billion for capital expenditure this year, up 12.3 percent from NT$28.82 billion last year.

Non-mobile capital expenditure is to increase 25.2 percent to NT$23.98 billion this year as Chunghwa Telecom aims to fund its investments in AI, data centers and new submarine cables, it added. Taipei Times