A total of 28 local manufacturers have established a vehicle development alliance, targeting the fast-growing global automotive electronics market, the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA, 台灣電機電子公會) said.
The 28 members of Taiwan Vehicle-Team (V-Team), which started operations on Wednesday, include Taiwan Semiconductor Manufacturing Co (台積電), MediaTek Inc (聯發科), Delta Electronics Inc (台達電), China Motor Corp (中華汽車), Hota Industrial Manufacturing Co (和大) and Teco Electric and Machinery Co (東元電機), the association said.
V-Team is led by former minister of economic affairs Woody Duh (杜紫軍), who said that the production value of the global automotive electronics industry last year hit NT$7.8 trillion (US$255.8 billion at the current exchange rate) and is expected to grow to NT$9.71 trillion in 2020 at a compound annual growth rate of about 5.6 percent.
In addition, automotive electronics account for almost 40 percent of a passenger vehicle’s total production costs, with the ratio expected to rise to 60 percent, Duh said.
According to the Industrial Technology Research Institute’s (工研院) Industrial Economics and Knowledge Center, the output of Taiwan’s automotive electronics sector totaled NT$165 billion in 2015, accounting for only 2.1 percent of the global total.
As there is plenty of room for growth in the nation’s automotive electronics business, V-Team should take advantage of potential growth to clinch deals, Duh said.
The alliance has set its sights on international markets and plans to make several overseas trips later this year, he added.
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