Interview with Ben Jiang, General Manager Aginode APAC

Early December, Ben Jiang, General Manager Aginode APAC, sat down with the Economy Chosun, a prominent weekly business magazine published by Chosun Ilbo, one of Korea's top media outlets.

Ben Jiang, General Manager Aginode APAC, highlighted the bright prospects of the communication and data solutions market during his recent interview in Seoul.

Aginode’s two main business focuses are cabling solutions supporting server interconnections in data centres and communication cables for advanced manufacturing facilities, such as semiconductor plants. The company’s cables are widely installed in global data centres and production facilities of major corporations like Infineon, Tencent, and Xiaomi. In Korea, Aginode cables are installed at Samsung Electronics’ semiconductor plants in Pyeongtaek, where high-speed and reliable data signal transmission is crucial for the highly digitalised production equipment. Aginode met Samsung’s rigorous quality verification standards, enabling successful deliveries.

Originally part of the Nexans Group, one of Europe’s top three cable companies, Aginode was spun off in July 2023 as an independent entity to focus on the burgeoning data centre market driven by AI development. To better target the rapidly growing data centre market in East Asia and mitigate trade risks stemming from U.S.-China tensions, Aginode is considering Korea as a strategic production hub. Ben stated that, “Korea is an ideal location due to its proximity to end-users, political stability, and robust supply chain.”

Below are some excerpts from the interview:

Q: What are the global trends in the data centre market that Aginode is focusing on?
“Currently, the U.S. leads the global data centre market, with China trailing behind. The Chinese market is unique, marked by over-production and over-investment. Whenever market participants see an opportunity, they dive in, so investment in China is unlikely to decline. Meanwhile, countries like Korea, Japan, and European nations are increasing their data centre presence. Currently, 30% of Aginode APAC’s revenue comes from data centre-related business.”

Q: With the AI era taking off, do you expect even more data centres to be built?
“Absolutely. As AI-generated content gains prominence, data centres are becoming the core infrastructure driving AI development. Considering AI technology’s potential, investments in data centres are bound to grow. Within the next five years, the number of data centres and their computational power could increase by 20 to 30 times, and the demand for inter-server cables will soar. This is why Aginode has high expectations for the data centre market.”

Q: How much cable is required for a single data centre?
“For a fully operational rack, which houses 20 to 30 servers, approximately 1 kilometre of cable is needed. The cost of the cables for a single rack can reach about $15,000 (20 million KRW). Additionally, 1 to 2 kilometres of cabling is required to connect all internal modules. While it’s difficult to pinpoint the exact cable requirements due to variations in the number of racks per data centre, the initial investment in cabling is undoubtedly substantial.”

Q: How critical is cable quality in data centres?
“Cable quality has a direct impact on the performance and stability of data centres. Even a minor cable issue can cause a system-wide outage. For AI-specific data centres handling massive amounts of data, network infrastructure reliability and stability are paramount. Companies scrutinise cable selection before moving into data centres. In this sense, cables are a crucial component that determines a data centre’s operational efficiency and stability.”

Q: Where are Aginode’s cables primarily manufactured?
“Our production facility is located in Shanghai, China. However, with trade risks such as those associated with a potential Donald Trump administration, we are considering setting up production hubs outside of China. Korea is one of the leading candidates due to its established customer base, including Samsung Electronics, political stability, and a strong supply chain infrastructure.”

Q: What sets Aginode apart from other cable companies worldwide?
“Our name, Aginode, incorporates the word ‘agile,’ reflecting our ability to respond quickly to customer demands with customised services. We also emphasise research and development (R&D), grounded in European manufacturing traditions. For instance, we launch new products almost weekly, constantly incorporating the latest technological trends. This approach has earned us long-standing partnerships, spanning 15–20 years, with global companies like Infineon, Tencent, and Xiaomi.”

Q: What efforts does Aginode make to ensure quality improvement?
“We operate an R&D lab within our Shanghai facility, investing heavily in research and testing. Before market release, all products undergo rigorous quality assurance testing to quickly analyse and resolve any issues. We also monitor product quality through key performance indicators (KPIs), maintaining a pre-market rejection rate below 1%. Our communication cables and optical connectivity products undergo 100% inspection to ensure perfect quality.”

Q: How do you view the APAC market, including Korea?
“While we see growth opportunities in the APAC region, the slowing Chinese market tempers our expectations. However, we are paying close attention to markets outside China, particularly Korea. Despite Korea’s relatively low economic growth, it remains critical for us due to key customers like Samsung Electronics. As semiconductor production lines become increasingly digitalised, our cables play a vital role in ensuring seamless network connectivity in Korean semiconductor plants. Furthermore, as AI growth drives semiconductor demand, we expect to grow alongside Samsung.”

Q: Are Aginode’s cables already used in Samsung’s semiconductor factories?
“Since the P3PH2 phase of the Pyeongtaek Plant 3, we have been a key supplier for Samsung. Our total solutions are now supplied not only to Pyeongtaek but also to Samsung's plants in Hwaseong, Giheung, and Cheonan/Asan.”

Q: What are Aginode’s goals for the Korean market?
“Korea’s market is characterised by a centralised structure dominated by major conglomerates like Samsung, SK, and Lotte. We aim to secure these large corporate clients and steadily expand our market share in Korea".
 

The original interview in Korean is published here.