While Taiwan has occupied a pivotal position in the world’s electronics supply chain, for the longest time no one thought it had a chance of achieving similar success in the auto industry.
The perception was that no local company made the crucial components required by internal combustion engine vehicles.
That changed almost overnight when automakers began to complain about a shortage of semiconductors early last year.
Photo: Lin Jin-hua, Taipei Times
In the race to accelerate production of electric vehicles (EVs), auto companies now require more electronics components than ever before. That is underscored by a global push for greener and smarter automobiles and consumers’ COVID-19-induced preference for private transport.
Previously best known as the exclusive main processor supplier for Apple Inc devices, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) name has begun to pop up in almost all conversations about the great chip dearth.
Even though autos account for a low-single-digit percentage of TSMC’s overall sales, the chipmaker’s role in the world’s auto supply chain was critical enough to bring senior officials from the US, Germany and elsewhere to call upon Taiwan to increase production of the microelectronics powering vehicles and other gadgets to aid in the post-COVID-19 economic recovery.
The industry’s EV transition has created opportunities for Taiwanese companies beyond TSMC, too. With EVs requiring many more electronic parts, Taiwan’s tech supply chain is seizing the opportunity with both hands.
Apple’s key assembly partner Hon Hai Precision Industry Co (鴻海精密), known internationally as Foxconn Technology Group (富士康科技集團), has agreed to acquire Lordstown Motors Corp’s Ohio pickup plant, pending regulatory approval, as a key step in its quest to become another Magna International Inc.
In December last year, Hon Hai announced that it would be teaming up with automaker Stellantis NV to develop semiconductors for auto production. The cooperation came after the two announced in May that they were investing up to US$80 million in a joint venture, Mobile Driver, which would focus on the development of smart cockpit solutions for vehicles.
Hon Hai, together with Taiwanese peers Pegatron Corp (和碩) and Quanta Computer Inc (廣達電腦), has also been supplying parts to Tesla Inc, while Delta Electronics Inc (台達電) provides power products or powertrains to General Motors Co, Stellantis NV and other major automakers.
Still others are choosing to work with tier-one suppliers. For example, PC and server maker Inventec Corp (英業達) is now supplying motherboards to German engineering giant Bosch Group and vehicle parts giant Continental AG.
The ascension of Taiwan tech was on full display earlier this year at the CES gadget show in Las Vegas. A partnership between BMW AG and E Ink Holdings Inc (元太科技), the long-time e-paper supplier to Amazon.com Inc’s Kindle, resulted in one of the event’s highlights — a concept sports utility vehicle that can change color.
Taiwanese officials are understandably keen to help more local companies pile in. The Tainan City Government is scouting for suitable land in industrial parks to establish specialized zones for auto electronics suppliers to build offices and plants.
“As industries undergo digital transformation, they’ll need new materials, new manufacturing models and support from a comprehensive ICT supply chain,” E Ink president F.Y. Gan (甘豐源) said during an interview earlier this year. “This is exactly where Taiwan’s strength lies.”
Additional reporting by staff writer
COMPETITION: AMD, Intel and Qualcomm are unveiling new laptop and desktop parts in Las Vegas, arguing their technologies provide the best performance for AI workloads Advanced Micro Devices Inc (AMD), the second-biggest maker of computer processors, said its chips are to be used by Dell Technologies Inc for the first time in PCs sold to businesses. The chipmaker unveiled new processors it says would make AMD-based PCs the best at running artificial intelligence (AI) software. Dell has decided to use the chips in some of its computers aimed at business customers, AMD executives said at CES in Las Vegas on Monday. Dell’s embrace of AMD for corporate PCs — it already uses the chipmaker for consumer devices — is another blow for Intel Corp as the company
ADVANCED: Previously, Taiwanese chip companies were restricted from building overseas fabs with technology less than two generations behind domestic factories Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp, would no longer be restricted from investing in next-generation 2-nanometer chip production in the US, the Ministry of Economic Affairs said yesterday. However, the ministry added that the world’s biggest contract chipmaker would not be making any reckless decisions, given the weight of its up to US$30 billion investment. To safeguard Taiwan’s chip technology advantages, the government has barred local chipmakers from making chips using more advanced technologies at their overseas factories, in China particularly. Chipmakers were previously only allowed to produce chips using less advanced technologies, specifically
MediaTek Inc (聯發科) yesterday said it is teaming up with Nvidia Corp to develop a new chip for artificial intelligence (AI) supercomputers that uses architecture licensed from Arm Holdings PLC. The new product is targeting AI researchers, data scientists and students rather than the mass PC market, the company said. The announcement comes as MediaTek makes efforts to add AI capabilities to its Dimensity chips for smartphones and tablets, Genio family for the Internet of Things devices, Pentonic series of smart TVs, Kompanio line of Arm-based Chromebooks, along with the Dimensity auto platform for vehicles. MeidaTek, the world’s largest chip designer for smartphones
TECH PULL: Electronics heavyweights also attracted strong buying ahead of the CES, analysts said. Meanwhile, Asian markets were mixed amid Trump’s incoming presidency Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday closed at a new high in the wake of a rally among tech stocks on Wall Street on Friday, moving the TAIEX sharply higher by more than 600 points. TSMC, the most heavily weighted stock in the TAIEX, rose 4.65 percent to close at a new high of NT$1,125, boosting its market value to NT$29.17 trillion (US$888 billion) and contributing about 400 points to the TAIEX’s rise. The TAIEX ended up 639.41 points, or 2.79 percent, at 23,547.71. Turnover totaled NT$406.478 billion, Taiwan Stock Exchange data showed. The surge in TSMC follows a positive performance
RSS