Mon, Oct 14, 2013 - Page 13 News List

Local component firms eye places in global car supply chain, analysts say

Staff writer, with CNA

Taiwanese electronics component suppliers have set a long-term goal of gaining an indispensable status in the global car supply chain on the back of their massive efforts in development and production, market analysts said on Saturday.

The manufacturers, in particular those in the business of passive components, such as resistors, capacitors, inductors and transformers, have come up with their own strategies to penetrate the world’s car market on an original equipment manufacturing basis, they said.

Among these Taiwanese passive component makers, Lelon Electronics Corp (立隆) was one of the first players to enter the auto parts supply chain. It did so in 2006 and has come a long way in obtaining certifications for its products, analysts said.

Lelon, which provides aluminum electrolytic capacitors, has become one of the first-tier component suppliers in the car market.

Lelon’s products are largely used in audio and video entertainment systems, electric windows and air bag systems.

Lelon has secured orders from China and South Korea, analysts said. They added that its capacitors have been used in a wide range of cars assigned to high-ranking Chinese government officials, while its first-tier supplier status has allowed it to become part of the supply chain for major South Korean car makers.

Analysts said car components are expected to account for 7 or 8 percent of Lelon’s total sales this year. They said Lelon’s revenue generated from that side of its business is likely to grow between 20 and 30 percent next year, with the operations expected to make up more than 10 percent of its total sales for the year.

In addition to car component manufacturing, Lelon is planning to serve as a sales agent for components made by other manufacturers in a bid to provide after-sale services to customers in China and further cement its footing in the fast-growing market.

Lelon said it is planning to continue to push up its car component operations, hoping the business will represent 20 percent of its total sales over the next three to five years.

Holy Stone Enterprise Co (禾伸堂) is another example of a Taiwanese electronics component maker grasping a larger share of the world’s car component market.

Holy Stone’s products, including multi-layer ceramic capacitors (MLCC) and micro controller units, have been applied to entertainment systems, anti-theft devices and navigation systems, analysts said.

In the first nine months of this year, car components accounted for 26 percent of Holy Stone’s total sales and the percentage is expected to be higher by the end of the year.

Other electronics suppliers have even eyed the electric car market, with Thinking Electronic Industrial Co (興勤) having presented its temperature sensor samples to potential clients, while Nichidenbo Corp (日電貿), an MLCC supplier, is working with automakers in eastern and southern China to provide power management systems for electric cars.

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