Taiwan Wants In

Taiwan wants to play a larger role in the automotive supply chain, by becoming an indispensable component supplier to global automakers. Great efforts in development and production are already underway. Taiwanese producers of passive components, for instance, capacitors, transformers, inductors and resistors, are putting plans in motion to infiltrate into global automotive markets. For instance, Lelon Electronics Corp, producer of aluminium electrolytic capacitors, entered the market in 2006. It has made significant progress in obtaining certifications for its products, which are used in automatic car windows, air bags and entertainment systems. It has already become a first-tier component supplier in the automotive industry, which helped to propel the company into China and South Korea markets. Car components account for 7% to 8% of Lelon’s total sales thus far, but analysts expect that number to grow to 10% next year, along with a revenue growth of 20% to 30% in that sector. The company also intends to serve as sales agents in China for other component manufacturers, further strengthening their hold on the market.

Taiwanese companies like Holy Stone and Nichidenbo are supplying MLCCs to global car manufacturers image: globalsource.com Another company making its way into the global market is Holy Stone Enterprise Co, which makes, among others, multi layer ceramic capacitors (MLCC) and micro control units used in anti-theft, navigation and entertainment systems. For the first 3 quarters of 2013, car components made up 26% of the company’s total sales. Other component manufacturers making a move are Thinking Electronic Industrial Co, which has been pitching its temperature sensor around to potential clients, and Nichidenbo Corp, an MLCC manufacturer, which are working with Chinese automakers to supply power management systems for electric cars. Soon enough, we'll all be seeing little 'Made In Taiwan' etchings on the insides our cars.