As automakers intensify their business strategies to catch up with the electrification trend and governments worldwide map out measures to address worsening air pollution and the climate crisis, the shift from fossil fuel-powered vehicles to electric vehicles (EVs) is moving faster than expected, creating opportunities for Taiwanese manufacturers, because EVs contain more electronic parts.
For a nation like Taiwan — which has a comprehensive electronics supply chain, along with a competitive edge in semiconductors as well as information and communications technology (ICT) — EVs are likely to grow into another trillion-dollar industry, something that even a decade ago was unthinkable.
Minister of Economic Affairs Wang Mei-hua (王美花) last month told reporters that the government’s industrial development policies this year are prioritizing three major industries: EVs, semiconductors and 5G communications. Assisting the industries to bolster their local supply chains and expand globally is crucial, she added.
Taiwan’s lead in the semiconductor and ICT sectors has clearly made it a pivotal partner in the world’s technology supply chains, and paved the way for the development of emerging industries, such as EVs, 5G, green energy and the Internet of Things.
While domestic auto parts makers have seen production output and exports grow rapidly over the past few years, most local manufacturers focus on the aftermarket business for fossil fuel-powered vehicles rather than the original equipment manufacturing (OEM) segment, as traditional automakers in the US, Europe and Japan continue to dominate OEM components.
However, the emergence of EVs has created opportunities for Taiwanese manufacturers of electronic components, such as drive systems, computer systems and flat panels. Several local producers of key electric systems, including electronic controls, powertrains and smart driver assistance systems, have become supply-chain partners of top automakers, such as Tesla, General Motors and Stellantis.
Hon Hai Precision Industry Co chairman Young Liu (劉揚偉) last month predicted that local manufacturers would make about 90 percent of the parts used in batteries, electric devices and power control solutions for Taiwan-made EVs by the end of 2024.
The key components of EVs — the battery, electric motor, electronic control system and onboard charger — are the focus of at least 30 Taiwanese companies. Hon Hai, which debuted three EV prototypes in October, has invested in the development of batteries and collaborated with Stellantis to produce smart EV cockpits.
Manufacturing EVs involves two industries: electronics and auto parts. The government should assist in the industries’ vertical and horizontal integration, and cooperate with global auto brands to enhance the competitiveness of the domestic EV industry.
Taiwan’s EV industry must first decide what role it aims to play in the global supply chain and what strategy it aims to adopt. This could help the industry to answer key questions: Will local firms focus on developing standardized, modular products? Will they focus on supplying custom-made parts? Will they seek to lead in developing hardware or software systems integration? Can they become as irreplaceable in the global EV supply chain as they are in the semiconductor industry?
Such questions cannot be ignored, but require serious contemplation as the government and domestic manufacturers eagerly push ahead with the nation’s technological innovation and industrial transformation.
The gutting of Voice of America (VOA) and Radio Free Asia (RFA) by US President Donald Trump’s administration poses a serious threat to the global voice of freedom, particularly for those living under authoritarian regimes such as China. The US — hailed as the model of liberal democracy — has the moral responsibility to uphold the values it champions. In undermining these institutions, the US risks diminishing its “soft power,” a pivotal pillar of its global influence. VOA Tibetan and RFA Tibetan played an enormous role in promoting the strong image of the US in and outside Tibet. On VOA Tibetan,
Sung Chien-liang (宋建樑), the leader of the Chinese Nationalist Party’s (KMT) efforts to recall Democratic Progressive Party (DPP) Legislator Lee Kun-cheng (李坤城), caused a national outrage and drew diplomatic condemnation on Tuesday after he arrived at the New Taipei City District Prosecutors’ Office dressed in a Nazi uniform. Sung performed a Nazi salute and carried a copy of Adolf Hitler’s Mein Kampf as he arrived to be questioned over allegations of signature forgery in the recall petition. The KMT’s response to the incident has shown a striking lack of contrition and decency. Rather than apologizing and distancing itself from Sung’s actions,
US President Trump weighed into the state of America’s semiconductor manufacturing when he declared, “They [Taiwan] stole it from us. They took it from us, and I don’t blame them. I give them credit.” At a prior White House event President Trump hosted TSMC chairman C.C. Wei (魏哲家), head of the world’s largest and most advanced chip manufacturer, to announce a commitment to invest US$100 billion in America. The president then shifted his previously critical rhetoric on Taiwan and put off tariffs on its chips. Now we learn that the Trump Administration is conducting a “trade investigation” on semiconductors which
By now, most of Taiwan has heard Taipei Mayor Chiang Wan-an’s (蔣萬安) threats to initiate a vote of no confidence against the Cabinet. His rationale is that the Democratic Progressive Party (DPP)-led government’s investigation into alleged signature forgery in the Chinese Nationalist Party’s (KMT) recall campaign constitutes “political persecution.” I sincerely hope he goes through with it. The opposition currently holds a majority in the Legislative Yuan, so the initiation of a no-confidence motion and its passage should be entirely within reach. If Chiang truly believes that the government is overreaching, abusing its power and targeting political opponents — then
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