The output of Taiwan’s auto electronics industry is expected to become a trillion-dollar industry in five years, as more companies join this line of business, Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA, 電電公會) said yesterday.
The production value of the auto electronics industry totaled NT$156 billion (US$4.81 billion) last year, according to statistics provided by the Industrial Economics and Knowledge Center (IEK).
However, “based on our estimates, the output was underestimated,” TEEMA vice chairman Joseph Cheng (鄭富雄) said at a joint exhibition of the Taipei International Auto Parts and Accessories Show, AutoTronics Taipei, the Taiwan International Electric Vehicle Show and the Taiwan International Motorcycle Show at the Taipei World Trade Center and the Taipei Nangang Exhibition Center.
Photo: CNA
“The output should be more than NT$200 billion,” Cheng said, adding that more than 40 percent of TEEMA’s 48 board directors are in the automobile electronics industry.
In addition, many information and communication technology companies have also pushed into the development of automobile electronics applications in recent years, Cheng said.
He cited organic light-emitting diodes (OLED) — much valued by Hon Hai Precision Industry Co (鴻海精密) in its latest bid for Japan’s Sharp Corp — as an example that the technology can be used in various automotive applications, such as dashboards and car phones.
Automobile electronics smart applications will account for as much as 40 percent of a vehicle’s total price, TEEMA predicted.
The global output of automobile electronics reached US$238.8 billion last year and is expected to increase to US$301.1 billion in 2019, Cheng said.
The Taiwanese industry is forecast to grow by a compound annual growth rate of 20 to 30 percent, outpacing the global industry, which is expected to expand by 6 to 8 percent annual, Cheng said.
“With that anticipated increase, the industry could become a trillion-dollar industry in five years, compared with an output of NT$200 billion last year,” he said.
The joint exhibition, featuring 1,131 exhibitors in 3,188 booths, is to run through Saturday, with some companies focusing on Internet of Vehicles (IoV) applications.
Auto parts maker Mobiletron Electronics Co (車王電子) is showcasing a minibus with IoV applications. The electric minibus, which features 360-degree cameras, Wi-Fi and virtual private network connection, can be used for medical and educational purposes, it said.
“We are aiming at innovation in services for vehicles,” Mobiletron chairman Kim Tsai (蔡裕慶) said at the company’s booth.
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