Design by Sparkly TAIWAN AUTO PARTS AND ACCESSORIES INDUSTRY development and competitive advantages Supported by Ministry of Economic Affairs www.moea.gov.tw Organized by Bureau of Foreign Trade, MOEA www.trade.gov.tw Implemented by Taiwan External Trade Development Council www.taitra.org.tw Ad. by Bureau of Foreign Trade INDEX 2 Current development of Taiwan's auto industry 6 Analysis of global and Taiwan's auto parts industry 8 Core strengths of Taiwan's auto parts industry ‑ Presence of auto and auto parts industry clusters ‑ Taiwan has a complete up-, mid-, and downstream auto parts industry chain ‑ Among Taiwan's collision parts, exports of machinery and rubber/plastic parts have been growing steadily. ‑ Taiwan's mold manufacturing industry has inherited Japan's technology, quality, and precision, and possesses extensive ‑ The cost of auto electronics as a percentage of vehicle cost is increasing rapidly.relevant experience ‑ Taiwanese firms' rapid production (RP) technology 20 Taiwan's leading manufacturers in terms of auto parts exports ‑ The following are some of Taiwan's leading auto parts manufacturers 32 Development opportunities for Taiwan's auto parts industry and future trends future trends 34 Manufacturers Directory 2 3 applications for assembly plants unless the plant exported at least 50% of its vehicles. Auto companies began to acquire CKD assembly, seat, suspension, and transmission system production technology, and as a result, in-house content surged to 50-60%. Current development of Taiwan's auto industry The majority of auto parts plants in Taiwan initially started out making motorcycle parts. As a result of the government's policy of localization and increased local content starting in 1958, assembly plants started to look for suitable domestic auto parts plant partners in order to create a domestically-made vehicle parts supply system. At the same time, under the government's increased local content policy, assembly plants steadily developed inhouse parts, and this trend intensified due to increasing competition in the auto industry and the resulting need for lower costs and improvement of quality. The relationship between central plants and parts plants grew increasingly close. Aside from providing all kinds of product and market information to their suppliers, central plants also provided management system guidance to facilitate improvement. For this reason, assembly plants provided a foundation on which the auto parts industry developed. The development of Taiwan's auto industry can be divided into six phases: 1. Introduction of assembly technology (1953-1967) Taiwan's auto industry was in its infancy during this phase. Even though increased local content regulations were enacted in 1958, and Yulon Motor stipulated a 20% increased local content each year with a goal of achieving total in-house production within five years when signing a technical cooperation agreement with Nissan Motor, implementation proved to be impossible due to Taiwan's immature production technology and high costs. As a result, the majority of parts were assembled from imported bulk parts (KD), and in-house content was only 20-40%. 2. Production technology introduction phase (1968-1978) This phase saw assembly plant establishment approval granted to San Yang, Ford Lio Ho, and China Motor. However, the government subsequently did not permit 3. Production technology absorption phase (1979- 1991) During this phase, thanks to the increasingly mature state of Taiwan's basic industries such as casting, punching, and forging, increasing demand for cars, higher parts delivery and management standards, and the government's incentive measures, parts such as brakes, instruments, and steering systems achieved the goal of localization, and in-house content reached as high as 70%. 4. Active development phase (1992-2002) Due to the small domestic car market and difficulty in reducing parts costs, the development of Taiwan's auto industry encountered restrictions. The only answer was to comply with the government's Automobile Industry Development Strategy, which focused on international markets, by exploring the opportunities and difficulties of foreign market entry, and seeking out possible solutions. This effort involved upgrading various parts industries and performing key parts development work in an effort to enter international division of labor systems and expand exports. 5. International take-off phase (2003 - 2008) When Taiwan became a member of the WTO in 2002, this led to the reduction of import duties and attracted the attention of international firms interested in Taiwan's consumer auto market. Apart from the cancellation of the increased local content policy, in 2004 the government of Taiwan also revoked the 3% excise tax reduction for companies that conducted in-house R&D and production. However, in the wake of the formation of regional economic blocs worldwide, while import duties are typically 0-5% within each regional bloc, tariff barriers still protect against imports from countries outside a bloc. For this reason, Taiwan's auto industry bore the brunt of competition in international auto markets. Under the second phase of the Automobile Industry Development Strategy, auto companies actively took part in the global division of labor system, and assembly plants began to attempt to export whole and CKD vehicles to Southeast Asia. Auto parts plants expanded their export channels via acquisition of distributors and strategic/brand alliances. As for development of the highly-promising Chinese market, Taiwan's auto parts 4 5 plants gradually introduced Taiwan's technologies to China via a cross-Strait division of labor system in order to achieve economies of scale. Because of the small size of the domestic market, achieving economies of scale has proved to be unattainable. For this reason, Taiwan must focus on globalization, increase the added value of its brands, develop products that meet the needs of local consumers and implement a strategy of differentiation. With regard to export channels and market expansion, in order to nurture specialized motor vehicle trading companies with international competitiveness, the Industrial Development Bureau, MOEA implemented the "Specialized Trading Company Tangible Assistance Program" and the "Project to assist SMEs to Enter the Purchasing Circles of Major International Firms." It is hoped that strategic alliances consisting of specialized domestic motor vehicle trading companies, major international auto manufacturers, leading parts manufacturers, aftermarket channel firms, and domestic trading companies will help domestic parts firms to expand their exports. To strengthen auto firms' design and development ability, the Industrial Development Bureau, MOEA has implemented the "Whole Vehicle Development Plan," which gives investment plans for vehicle models, chasses, and key precision parts designed in-house by Taiwan's auto companies "Important Emerging Strategic Industry" status, helping assembly plant and parts manufacturers to engage in the design and development of vehicles and key precision parts. term support for the Whole Vehicle Development Plan. The Luxgen brand, which is differentiated by its advanced onboard electronics, has found favor with Taiwan's consumers. The Yulon Group also introduced another in-house brand—"tobe"—in November 2009. The tobe brand is clearly differentiated from the foregoing Luxgen, and is aimed at the small car market. The first model of this brand—the M'car—is the product of cross-Strait collaboration, and is based on China's Geely Panda, with the addition of engineering adjustments and differentiated design features. Manufactured and assembled in Taiwan, it is sold in the domestic and foreign markets. The first batch of mass-produced vehicles went on the market in Vietnam in December 2009, and it has been sold in Taiwan since April 2010. The development of autonomous brands has enabled domestic firms to control the entire auto value chain, including the areas of market research, product planning, design, development, production, and sales. And from the perspective of key parts, since many such parts must be developed jointly by assembly plants and parts manufacturers, the parts supply systems established by autonomous brands provide opportunities for Taiwan's parts manufacturers to boost their status in the auto supply chain. The Yulon Group and China's Dongfeng Motor Group jointly entered the Chinese market in 2011, and have relied on the size of the Chinese market to actively increase in-house content of key parts, such as by developing a 2.2-liter engine for Luxgen cars in May 2012. The partners plan to develop various types of engines in the future in response to different assembly needs, look forward to entering the Russian market in the second quarter of 2013, and will continue to boost the market share and visibility of Yulon's autonomous brand in international market. 6. Autonomous brand development phase (2009 – present) In January 2009, the Yulon Group launched its in-house brand Luxgen, which signified an important milestone for the development of Taiwan's auto industry. Apart from the company's determination, its success also illustrated the government's long- Introduction of assembly technology 1953 1967 Production technology introduction phase 1978 Production technology absorption phase Active development phase 1991 International take-off phase 2002 Autonomous brand development phase 2008 6 7 Figure 2 Analysis of Taiwan's auto parts output Auto steering systems and parts 1.41% Auto instruments 1.22% 2012 Value of auto parts output (NT$188.76 billion) Auto electrical parts 21.05% Trucks and other vehicle bodies 1.03% Analysis of global and Taiwan's auto parts industry Demand for cars is increasing rapidly in the world's emerging nations, and auto sales volume and penetration are surging in emerging markets such as China, India, and the ASEAN countries. The demand for auto parts is also expanding quickly, especially in the wake of growth in emerging market auto sales since 2010. It is estimated that the value of global auto parts output will grow 7.8% in 2013, and total value will reach approximately US$1.15133 trillion (see Fig. 1). Figure 1 Global auto parts output value and growth rate, 2010-2014 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% 1,400 1,200 1,000 800 600 400 0 2010 2011 2012 2013 Units: US$1 billion Value of auto parts output Annual growth rate 2014 Other auto parts 49.93% Auto engines and parts 7.11% Auto brake systems and parts 3.76% Large bus bodies 1.14% Auto transmission and suspension systems and parts 13.35% Source: Department of Statistics, MOEA; ITRI IEK (2013/06) In the last few years, the quality of domestic auto parts has attained international standards, and domestic parts have been acquiring aftermarket parts certifications from Europe and North America. Taiwan's auto parts industry has a well-developed centersatellite system, and there is extensive cooperation between center and supplier plants. Domestic auto parts firms offer both a cost advantage and flexible manufacturing methods. Boosted by strong demand in North America, Japan, and emerging nations, Taiwan's auto parts sales grew by 2.2% in 2012 compared with 2011, and a total of roughly NT$196.7 billion in auto parts were sold in 2012 (see Fig. 3). Figure 3 Analysis of Taiwan's auto parts sales, 2010-2014 220,000 215,000 210,000 205,000 200,000 195,000 190,000 185,000 180,000 175,000 170,000 165,000 25% 20% 15% 10% 5% 0% Source: Department of Statistics, MOEA; Customs import/export database; ITRI IEK (2013/06) Source: Department of Statistics, MOEA; Customs import/export database; ITRI IEK (2013/06) With regard to Taiwan's auto parts production and sales, in 2012 Taiwan produced a total of NT$188.76 billion worth of auto parts, and auto electric parts; suspensions, transmission systems, and parts; and auto engines and parts accounted for the largest shares of this total (21.1%, 13.4%, and 7.1%). (see Fig. 2). Most early auto parts plants were located in the area around Taipei and Taoyuan, and formed the supply chain of the central Yulon plant. Afterwards, 11 companies, including San Fu Motor, Ford Lio Ho, China Motor, San Yang, and Yu Tien, began producing cars, which led to the establishment of auto parts manufacturers in the Taichung/Changhua area, and the Tainan/Kaohsiung area. 8 9 Core strengths of Taiwan's auto parts industry 1. Presence of auto and auto parts industry clusters With regard to the development of auto and parts industry clusters, Taiwan's auto industry has been in existence for several decades, is closely interlinked, and has a complex industry chain. As the industry changes, the scope of industry clusters is also changing. From a spatial perspective, Taiwan's auto and parts industry has mostly been clustered near the island's major northern, central, and southern urban areas. In terms of such criteria as land use by plants, number of persons employed at relevant firms, and number of companies, northern Taiwan has the largest auto industry cluster. In terms of location at the county level, the industry has been gradually shifting from Taipei city and New Taipei City to the Taoyuan and Hsinchu area since 1980. One of the main reasons for this trend is the shift of the center of Yulon auto production from Xindian (New Taipei City) to Sanyi, Miaoli County. The establishment of plants in Yangmei and Zhongli, Taoyuan County and Hukou, Hsinchu County by Kuozui Motors, Ford Lio Ho, and China Motor has had a major influence on the clustering of relevant firms, and the concentration of the industry has become more evident. The most significant industry cluster in central Taiwan is the one surrounding the location of Yulon in Sanyi, Miaoli County. Apart from this, there is also a cluster of relevant firms in the area extending from Taichung to the Changpin Industrial Park. In southern Taiwan, although there are many relevant firms, industry clusters cannot be pinpointed as easily as in northern and central Taiwan. The connections between these firms have been becoming stronger in recent years, however, and the most evident cluster of related firms has taken shape in Tainan's Anping industrial area. With regard to assembly plants, Taiwan's eight major whole vehicle companies are Kuozui Motors, Ford Lio Ho, San Yang, Prince Motor, China Motor, Yulon (located in northern Taiwan), Taiwan Isuzu, and Taiwan Honda (Isuzu and Honda are located in central and southern Taiwan). These central assembly plants promoted the development of parts manufacturers, and the suppliers that populated each center-satellite system tended to be clustered around their central assembly plant. As a result, the major parts manufacturers have tended to be located in clusters, and they also induced upstream vendors to establish plants nearby. The industry clusters in the Changhua area and around Tainan belong to this type. 10 In northern Taiwan, the largest concentration of auto firms is located in the Taoyuan area. China Motor, Kuozui Motors, and Ford Lio Ho have all established plants in the industrial areas of Yangmei and Zhongli, Taoyuan County, and numerous small/mediumsized parts manufacturers have likewise settled in this area. Relevant parts manufacturers located nearby include Taiwan Denso, Kiang Shan, and Lioho Machine. Furthermore, there are also clusters of parts manufacturers in other areas of Taoyuan County, including Guanyin, Luzhu, and Guishan. In Hsinchu County, an auto parts industry cluster has emerged in the area around Xinfeng and the Hsinchu Industrial Park. This cluster includes such firms as San Yang, Taiwan Bridgestone, Nankang Tire, Shihlin Electric, and GSK. In addition, many system vendors serving Yulon are clustered in or near Sanyi, Miaoli County. In central Taiwan, the auto parts industry is concentrated in Changhua County, and there are clusters of firms in Yuanlin, Lugang, Shengang, and the Changpin Industrial Park. Leading parts firms in this area include Kenda Rubber, Depo, E-Lead, and Chien Sheng. In southern Taiwan, the most evident auto parts industry cluster is around Anping in Tainan, and there are a few clusters near Luzhu and Renwu, Kaohsiung County and in Pingtung City. The leading parts manufacturers in the Tainan area include Ta Yih, TYC Brother, Kai Yih, and Tong Yang, while Depo is located in the Xinying Industrial Park. Tainan contains a major concentration of important vehicle light and rubber/plastic part manufacturers (see Fig. 4). 11 Figure 4 Current status of Taiwan's auto industry (including auto parts industry) clusters Companies in northern Taiwan Whole vehicle producers: Kuozui Motors, Ford Lio Ho, San Yang, Prince Motor, China Motor, Yue Loong Parts: Tung Thih, Shinlin Electric, Haitec, Uni Auto Parts, Taigene, Gordon Auto Body, Hamg Shing, Gong Hsin, Jui Li, Nangang Tires, Hsin Chong, Chian Hsing Forging, Taiwan Yuasa, Everlight, Lioho Machine, CEC, Johnson, Taiwan Denso, Taiwan Bridgestone, Photic Electronics, Taiwan Riken, Delta Electronic, and Actron. Northern Taiwan: Taipei, New Taipei City, Keelung City, Taoyuan city and county, Hsinchu city and county, and Miaoli city and county Northern Taiwan Companies in central Taiwan Whole vehicle producers: Taiwan Isuzu Parts: Ken Sean, Mobiletron, Universal Global Scientific, E-Lead, Vei Sheng, Y.C.C. Parts, Chuan Hsing Spring, Cheng Shinn Tire, Kenda Tire, SuperAlloy, Hota, FBT, Chian Hsing Forging, Maxzone Central Taiwan Central District: Taichung, Changhua County, Nantou city and county, Yunlin County Easter Taiwan 2. Taiwan has a complete up-, mid-, and downstream auto parts industry chain Taiwan's auto parts industry chain, including the auto industry and parts manufacturers, constitute a typical center-satellite system, where central assembly plants outsource parts production to Tier 1 satellite plants, and the Tier 1 satellite plants further outsource the production of constituent parts to Tier 2 and Tier 3 satellite plants, forming a pyramidshaped multilevel division of labor structure. There are approximately 400 OEM parts manufacturers serving Taiwan's 10 current auto assembly plants, and if Tier 2 and 3 satellite plants and parts manufacturers serving the aftermarket system are included, Taiwan has a total of approximately 2,300 parts suppliers. Close to 100 companies have made investments in China. Most firms currently rely on the use of partial process automation to achieve flexible manufacturing, which allows them to offer small batches of diverse products as needed, and quality has caught up to international standards (see Fig. 5). Southern Taiwan Companies in southern Taiwan Whole vehicle producers: Taiwan Honda Parts: Tong Yang, Taiwan Kai Yih, Maxzone, TYC Brother, Eagle Eyes, Ta Yih, Dun Young, Right Way, and Macauto. Companies in eastern Taiwan N/A Eastern Taiwan: Hualien County, Taitung County, Yilan County Southern Taiwan: Chiayi city and county, Tainan City, Kaohsiung, Pingtung city and county Source: ITRI IEK (2012/08) 12 13 Figure 5 Taiwan's auto parts industry chain Upstream raw materials/parts Cathode materials Upstream rawmaterials/parts Anode materials Cylinders/ pistons Substrate Washers Bearings/ bushings Transmission axles Piwer electronics elements Electrolyte LED/ lighting Separator membrane Steel Glass Plastics Rubber Cathode materials Anode Materials Substrate Electrolyte Separator membrane Cylinders/pistons Washers Bearings/bushings Transmission axles Power electronics elements LED/lighting Glass Steel Plastic Rubber Comp Auto Parts Lico, Chang Yuan Tak Technology, Aleees, Shang Chih Hirose Tech China Steel Chemical Panasonic Pioneer Technology Formosa Plastics Coin Chemical Riken, Right Way China Motor Tatung, Porite Taiwan Yung Hua, Chunghun Taiya ROC Spicer, Hsieh Hsiang Delta Electronic, Advantech Via Technologies, Universal Global Scientific Holtek, Actron TXC Vee Everlight, Unity Opto Technology, Liton Taiwan Glass China Steel, Yieh Phui Formosa Plastics, Chi Mei TSRC, China Synthetic Rubber Mid-streamparts/modules Mid-stream parts/modules High-power batteries Energy storage systems Controllers Valve systems Transmission/ mechanisms Vehicle lights Tires/ rims Motors Rearview mirrors Downstream syatems Electrical systems Body sheet metal Engine systems Intake/exhaust systems Bumpers/ supports Cooling/air conditioning systems Reversing radar Vehicle communications Transmission/chassis systems Whole vehicle assembly Whole vehicle High-power batteries Energy storage systems Motors Controller Valve systems Transmission/mechanisms Body sheet metal Vehicle Lights Tires /rims Rearview mirrors Bumpers/supports Reversing radar Pihsiang, You Liang, E-One MoliSimplo, TD Hi Tech, Juei Teh Chuan Yang, Yu Chuan, SuperAlloy Celxpert, Dynapack Tomita, Shinlin Electric,TECO Tatung, Taigene CEC, Right Way, China Motor Tatung Hota, Chunghua Taiya, Ji-EE, Shih Yeh Johnson, Jui Li, Gordon Auto Body, Elite Maxzone, TYC Brother, Ta Yih, Eagle Eyes Cheng Shin, Kenda, Nangang, SuperAlloy, Lioho Ken Sean, Fu Hua Tong Yang, Y.C.C. Parts,Gordon Auto Body, Yu Chi, Lien Cheng, Feng Yu Tung Thih, Photic Electronics, Mobiletron Downstream systems Electrical systems Engine systems Intake/exhaust systems Cooling/air conditioning systems Vehicle communications Haitec, Delta Electronic Yue Loong, CEC, Hua Yong Hsin Tung, Hua Yang, Chien Tai, Hsieh Hsiang, Fu Hsing, Chu Hui Calsonic,Universal Global Scientific,Yuan Cheng,Shinlin Electric, Y.C.C. Parts,Chih Ta, Wei Lun, Gordon Auto Body E-Lead, Universal Global Scientific, Liton,Tung Thih, Hang Hsin, Action Electronics,Garmin, Gong Hsin, Lite-On, Toppoly, Teamsharp, Mobiletron Transmission/chassis systems Yung Hua, Chunghua Taiya, ROC Spicer, Hsieh Hsiang, Haitec Source: ITRI IEK (2013/06) In the vehicle parts aftermarket, Taiwan accounts for 60-70% of the world's collision parts (including vehicle lights) by value. Among aftermarket collision parts such as bumpers, sheet metal parts, rearview mirrors, and rubber/plastic parts, Taiwan accounts for over 85% of the world's rubber/plastic parts and for more than 90% of bumpers; relevant auto parts firms in Taiwan are shown in Fig. 6 14 15 Figure 6 Major automotive systems and corresponding suppliers in Taiwan Electronics and Electrical Systems Shang Ho CTE Corp. Taiwan Yazaki Tai Yu Electric Antec Electric Hu Lane Taigene Taiwan Denso Delta Electronics Universal Global Scientific Chao Long TYC Brother Everlight Electronics Kuo Chuan Ta Yih Maxzone Stereos and On-board Communications Cheng Shin Taiwan Matsushita E-Lead Hamg Shing Delta Electronics Passenger Restraint Systems Steering Systems Vehicle Body and Glass Body and Structure Interior Finishing Systems Tung Hsin Chang Chuan Hsing Mei An Yu Sheng Taiwan Hou Mu Lioho Machine Hota Hsieh Hsiang Right Way Taiwan Auto Glass Yu Sheng Lung Ta Wu Hsiang Lien Cheng Hsieh Hsin Johnson Cheng Yu Chun Yuan Lieh Kuang Jui Li Gordon Ju Yang Tong Yang Lien Cheng Yu Chi Feng Yu Hsin Chong Chuan Hsing Engine Systems Fuel and Oil Systems CEC Chung Yuan Tatung Hua Hsin Hsieh Hsiang Ji-EE Yuan Hua Lioho Machine Hsieh Hsiang Taiwan Denso Jui Li Lien Cheng Air Conditioning and Engine Cooling Systems Taigene Sanden Taiwan Taiwan Matsushita Taiwan Denso Calsonic Mei Sheng Wan Tzai Transmission Systems Brake Systems Suspension Systems Axles, Drive Axles Exhaust Systems Tires Chunghua Taiya Tsang You Nan Huang Taiwan Hou Mu Elite Fine Blanking Heng Tung Kuang Lung Lioho Machine Ho Hsin Elite Chunghua Taiya Ho Sheng Right Way Yung Hua Chunghua Taiya ROC Spicer Tsang You Hota Jung Chang Huang Hua Chien Tai Hsieh Hsiang Ho Chun Nangang tires Taiwan Bridgestone Kenda Cheng Shin Federal Alex Lioho Machine Fu Hai SuperAlloy Yuan Heng Source: Taiwan Transportation Vehicle Manufacturers Association (TTVMA); ITRI IEK (2011/04) 16 3. Among Taiwan's collision parts, exports of machinery and rubber/ plastic parts have been growing steadily. 17 5. The cost of auto electronics as a percentage of vehicle cost is increasing rapidly. Taiwan's manufacturers produce a vast range of auto parts, including plastic parts, The fact that cost of auto electronics as a percentage of vehicle cost is increasing auto sunshades, tires, vehicle lights, bumpers, forged parts, engine covers, fenders, rapidly offers Taiwanese firms four development opportunities: auto water tanks, condensers, auto belts, instruments, and rearview mirrors. The leading categories of exported parts include body collision parts, electrical parts, tires, and peripheral and accessory parts. 4. Taiwan's mold manufacturing industry has inherited Japan's technology, quality, and precision, and possesses extensive relevant experience Many of Taiwan's early auto parts manufacturers acquired mold production technology from Japan. Having accumulated many years' experience and technological expertise, parts manufacturers' advanced processing technology, mold development skills, and production technology ensure product precision and cost competitiveness. Taiwan's (1) Semiconductors and sensors : Taiwan's ICT industry is powerful, and its IT industry chain is complete. Many of Taiwan's information products have great international competitiveness, and some key parts are ranked first in the world. Taiwan's ICT firms possess extensive ability to design and manufacture ICs, semiconductors, and sensors, and are able to integrate power elements and controllers in auto electronics systems. Taiwan also has a complete semiconductor industry chain, and relevant firms have entered the auto electronics industry. With on-board information and communications (telematics) as their developmental basis, these firms are pursuing global OEM and aftermarket opportunities. firms possess plentiful experience, which has enhanced the capabilities of peripheral industries. For instance, cooperation with satellite auto parts manufacturers has continuously boosted the technology of Taiwan's mold plants. (2) Vehicle safety products : Vehicle safety products are new favorites in the aftermarket. However, Taiwan's auto parts firms are chiefly SMEs, are lacking in such aspects as technology and resources, R&D funding, time, size, and testing and certification, and must coordinate their products with vehicle manufacturers. In addition, the vehicle safety product market has a high threshold to entry. Examination of global auto electronics development trends and the structure of Taiwan's auto electronics product R&D suggests that if parts manufacturers can make the best use of current product development capabilities, and make use of new technological applications, they can achieve a considerable level of competitiveness in this market. The most urgent question at present is how to quickly develop competitive products. (3) Telematics products: Numerous Taiwanese firms have entered the telematics market, and many of 18 19 these have specifically targeted the aftermarket. Firms have a high level of product development autonomy, and may specialize in hardware (such as satellite navigation units), software (user interfaces and voice identification, etc.), and system services (such as Yulon's earlier development of its TOBE service). Telematics products developed in Taiwan have mostly consisted of hardware devices such as satellite navigation modules, various on-board devices, PDAs used in conjunction with cell phones, and commercial fleet (such as taxis and trucks) management modules. Downstream products currently under production include embedded on-board navigation units, commercial fleet monitoring and positioning systems, portable vehicle navigation devices, PDA navigation system modules, and auto video entertainment equipment. (4) Entering the Chinese market in cooperation with major international firms: International first-line system firms are already investing in China, and obtaining supplies from Tier 1 and 2 parts firms in China. For instance, Delphi supplies the GM system, Visteon supplies the Ford system, Denso supplies the Toyota system, and Taiwan's Tung Thih supplies reversing radar to the Mercedes Benz system and Chinese vehicle manufacturers. Taiwanese producers may aspire to play the role of Tier 2 or 3 parts suppliers, and can employ technical cooperation or joint funding to enter the Chinese OEM market or aftermarket. 6. Taiwanese firms' rapid production (RP) technology Assistive technologies include rapid prototyping (RP), rapid tooling (RT), product data management systems, engineering data management systems, and concurrent engineering of precision processing machinery. Thanks to the accumulation of design data and experience over the course of many years, Taiwan's auto parts manufacturers have gradually gained a competitive advantage in the form of production precision and rapid reverse engineering. Some typical reverse engineered parts include bumpers, varies vehicle lights, sheet metal parts, and rearview mirrors, etc. In the field of aftermarket sheet metal parts, past development processes involved acquiring OEM parts as templates, and then using plaster to capture the reverse of the surface shape, followed by use of resin to reproduce the original shape after trimming, allowing the cutting of a mold. However, since this process is wasteful of materials, and entails costs such as the preservation of resin materials, it is gradually being replaced with digital methods. Nowadays, CAD models are produced of OEM parts, and reverse engineering performed on a computer, sharply reducing production and storage costs. 20 21 aftermarket products under the "Depo" inhouse brand. This company is the world's main supplier of aftermarket vehicle lights, and chiefly produces motor vehicle lights, miscellaneous auto hardware, and various auto parts. Vehicle lights accounted for 99% of Depo's product Taiwan's leading auto parts manufacturers structure in 2011. Depo chiefly serves the aftermarket. Over 14,000 of the company's vehicle light molds have passed SAE and E-Mark certification, and it develops 400-500 molds annually, constituting a deterrent to wouldbe competitors. Depo's chief vehicle light parts include glass, plastic, plastic raw materials, light bulbs, The following are some of Taiwan's leading auto parts manufacturers: (1) Tong Yang and lamp housings; of these, plastic parts account for the largest share of Depo's costs. Europe and North America have mature insurance systems. In view of the fact that aftermarket vehicle lights are 20%-30% less expensive than OEM parts, in order to Depending on the type material they work with, the auto/motorcycle parts industry cut costs, in recent years insurance companies have been chiefly using aftermarket, can be divided into metallic material and nonmetallic material categories. Tong Yang and not OEM, auto collision parts, which must first pass the insurance companies' is a major vendor of plastic parts, which constitute nonmetallic materials. After its CAPA certification. Approximately 20% of Depo's parts passed CAPA certification merger with Kai Yih on September 1, 2010, Tong Yang offered the two product types during the first half of 2011. Europe, The US, New Zealand, and Australia account for of aftermarket plastic molded collision parts and sheet metal parts. roughly 74% of Depo's sales. Tong Yang chiefly produces bumpers. Approximately 10.85% of products are sold domestically, and 89.15% are exported. Roughly 65.88% of products are directly exported, while 23.27% are indirectly exported; major sales areas consist of the US and Canada, followed by Latin America and Europe. Because Tong Yang can readily meet customers' price, quality, and delivery time requirements, it has captured an impressive market share. Approximately 85%-90% of aftermarket collision parts are supplied by Taiwan, and Tong Yang is the world's main manufacturer of aftermarket plastic parts in its category. (2) Depo Depo is a major domestic aftermarket vehicle lights manufacturer, and sells its (3) TYC Brother TYC Brother engages in extensive lamp R&D, and produces lamps complying with legal, dimensional, and light distribution standards, providing users, drivers, and pedestrians with safety protection. TYC Brother is one of the world's largest suppliers of auto, motorcycle, truck, and bus vehicle lights, provides lamps with different functions and uses to the global OEM market and aftermarket. TYC Brother offers the most complete line of lamp products and other collision parts, and is customers' best choice for one-stop shopping. Apart from passing ISO14001, ISO19001, ISO/ TS16949, and Ford Q1, TYC Brother became a member of the Certified Automotive Parts Association (CAPA) in July 2005, and has become a qualified CAPA supplier. 22 23 TYC Brother's R&D department is responsible for developing all lamps in-house, systems, vehicle blind spot detection (BSD) systems, and performs structural and optical design, mold development, legal and regulatory vehicle lane departure warning systems (LDWS), compliance, quality testing, and quality assurance tasks. TYC Brother is continuously front collision warning (FCW) systems, and 360° absorbing new technology and performing training in order to boost its R&D all-round vehicle monitoring (AVM) systems. Dun capabilities, enabling it to fully satisfy customers' demands. Young's products comply with vehicle regulation The company's main business strategy is to continue to obtain CAPA and other major certifications for its vehicle lighting products, which will enhance its sales and profit. TYC Brother will also increase its new vehicle light product development speed, shorten new product time to market, and thereby safeguard its status as the market leader. Furthermore, TYC Brother will take advantage of its secondary optical core technology to develop and introduce HID and LED high-efficiency energy-saving lamps, and actively enter the Chinese market, global streetlight market, and other illumination markets. (4) Dun Young Dun Young became a subsidiary of the Liton Electronic Group in 1992, and has successively developed such new products as auto anti-theft devices, tire pressure detectors, and window/skylight controllers. In order to expand its share of the Chinese auto electronics market, the company established the Chinese subsidiary Dun Young Wuxi in 2002. Dun Young successfully developed an LED auto taillight product in conjunction with a customer in 2003. In order to expand international sales, Dun Young has been establishing service and sales subsidiaries close to the locations of its customers in Europe and the United States. Dun Young can provide integrated services spanning such products as camera modules and auxiliary video safety systems, and its products include a wide range of camera modules, digital wireless video transceiver modules, and video processor boxes. Dun Young has developed an advanced auto safety auxiliary system employing intelligence visual image processing technology developed in an industry-academic collaborative project involving the Industrial Technology Research Institute (ITRI) and National Chiao Tung University. The company's products include intelligent parking assistance (IPA) quality standards, and have passed E-Mark and CE certification. (5) Actron Technology Actron has passed QS9000, ISO9001, and TS16949 certification, and specializes in diode rectifier design, packaging, and production for use in auto alternators, including the packaging and use of pressfit diodes, dish diodes, and block diodes. Actron seeks to offer OEM-grade high-end auto alternator diode rectifiers, and currently supplies roughly 70% of its output to the original equipment market and 30% to the aftermarket. Actron specializes in diode rectifier and packaging design and manufacturing, maintains an excellent quality system and quality culture, and hopes to establish the leading benchmarks for auto diode rectifiers. Actron has extended its core technology to voltage regulators, and designs and develops applicationspecific integrated circuits (ASIC). Actron is on its way to becoming a world-class "total solution" vendor. Actron currently supplies five of the world's eight leading OEM alternator assembly plants. Via these Tier 1 vendors, Actron diodes are used by six of the world's major vehicle brand families. 24 (6) Universal Global Scientific 25 (7) Luxgen Universal Global Scientific relies on its core computing, communications, and Luxgen Russia established a new plant in 2013, and expects to formally enter the multimedia technology to strengthen its technology integration ability and stand Russian market during the third quarter of the year. Luxgen Russia is the company's out in the EMS vendor market through its miniaturization and modularization first overseas subsidiary apart from Taiwan and China, and has established a ability. Universal Global Scientific was the first vendor in Taiwan to develop wireless cooperative relationship with the private Russian auto manufacturer Derways. Derways LAN cards, and hopes to maintain its strengths as computing and communications is subordinate to the Mercury Group, which has vast corporate resources and is one continue to converge in the future. This company also looks forward to drafting of Russia's three leading carbonated beverage producers, with a business scope transformational strategies on the basis of its technological expertise. encompassing auto manufacturing, leasing, logistics, clothing, and foods. The all-new Universal Global Scientific plans to make auto electronics one of the key areas of its future development efforts. Universal Global Scientific joined the ASE Group in 1999, and this move provided a reliable source of support for the company's upgrading. Luxgen plant in Russia will be equipped with Luxgen's advanced production lines and production processes, and looks forward to providing Russian consumers with highquality, intelligent vehicles. Taiwan plant bears responsibility for manufacturing of small batches of diversified, The plant occupies a 23.5-hectare site, and conveys the group's determination to put highly-differentiated, compact products under Universal Global Scientific. Because down roots in Russia. Apart from the Luxgen 7 SUV, which will be introduced during the manufacture of storage products entails a high level of process complexity, and the third quarter of 2013, the company plans to introduce other models sequentially often a high degree of customization, production is retained in Taiwan. In addition, during 2014. In order to maintain high-quality assembly work, Luxgen has adopted Taiwan plant also bears responsibility for supplying domestic customers, which the most up-to-date production technology and an advanced production management include companies in and around the Southern Taiwan Science Park and Central system. Apart from providing specialized training to Russian engineers and technicians Taiwan Science Park. From the perspective of production processes, Taiwan plant at the company's Sanyi plant in Taiwan, Luxgen has also stationed engineers from its bears responsibility for gathering and analyzing customer and market information, parent plant in Russia to provide technical support. As a result, Luxgen will be able performing design work, producing samples prior to mass production, completing to ensure that all assembly and painting processes, etc., will be consistent with those electrical testing and other testing tasks, and other preparatory tasks before mass at its parent plant, and it will also strive to achieve compliance with the stringent production is assigned to overseas production sites. manufacturing processes at the parent plant. China is another key part of Universal Global Scientific's development plans. The The following is an overview of Luxgen's mainstream auto electronics products: company's Shenzhen and Shanghai plants are largely differentiated, with the Shenzhen plant specializing in computer-related areas and the supply of peripheral 1. Side View safety imaging system parts. Because the nearby area contains a cluster of notebook computer and flat panel If a vehicle from the rear enters the blind spots on the left and right sides, a collision display manufacturers, the Shanghai plant is focusing on the production of panel- and is possible if the driver tries to change lanes. As soon as the driver uses the direction wireless-applications products. 26 27 signals, the Side View+ system will display images of the right and left blind spots on the THINK+. 2. Vehicle lane departure warning system A camera mounted at top central part of the front windshield monitors the road to the front of the vehicle, and the THINK+ computing system identifies the correct locations of lane lines. The system turns on automatically when the vehicle is moving faster than 60 kmh. If the vehicle approaches any lane lines and the driver has not used the direction signals, the system will emit a beeping sound to remind the driver of a hazardous lane departure. 3. Intelligent electronic parking brake (EPB) Luxgen has set a precedent in Taiwan by employing the four-mode intelligent electronic parking brake (EPB) system made by the major European manufacturer Küster. These brakes are far safer than traditional hand brakes. This EPB system can hold vehicles with great force (maximum force of 1,320 Newtons in the case of the Luxgen 7 SUV and 1,270 Newton in the case of the Luxgen 5 Sedan). 4. Auto Park function The intelligent hand brake will automatically turn on as soon as the vehicle's engine shuts off. 5. Take Off Assistant When the driver presses on the accelerator, the hand brake will be automatically deactivated, allowing the vehicle to start on a hill without fear of rolling backward. 6. Dynamic braking Dynamic braking resolves the problem of the rear wheels locking up, causing the vehicle to lose control and skid, when traditional hand brakes are used in a moving vehicle. Dynamic braking enhances safety by ensuring effective braking force without locking up the rear wheels. 7. Child protection function After a vehicle has been parked, it is easy for a child in the vehicle to accidentally release the parking brake, causing an accident. The intelligent EPB brake system will automatically hold a turn-off vehicle, and will not release its braking function even if accidentally deactivated by a child. 28 29 Table 1 Current status and development trends of major parts manufacturers Company name Tong Yang Depo Status/significance in the industry Development trends during most recent year - Taiwan's largest auto bumper manufacturer. - Tong Yang’s main line of business consists of the manufacture of auto and motorcycle parts. The auto/motorcycle parts industry can be divided into metallic material and nonmetallic material categories. Tong Yang chiefly supplies plastic parts – a nonmetallic material. - After its merger with Kai Yih, Tong Yang offered the two product types of aftermarket plastic molded auto collision parts and sheet metal parts. - Depo is Taiwan's leading manufacturer of aftermarket vehicle lights, and sells its products under its in-house "Depo" brand on the global aftermarket. It is the world's leading supplier of aftermarket auto light products. - Depo chiefly produces motor vehicle lights, miscellaneous auto hardware, and various auto parts. Vehicle lights accounted for 99% of Depo's product structure in 2012. Depo chiefly serves the aftermarket. Over 14,000 of the company's vehicle light molds have passed SAE and E-Mark certification, and it develops 400-500 molds annually, constituting a deterrent to would-be competitors. TYC Brother - TYC Brother is one of the world's largest suppliers of auto, motorcycle, truck, and bus vehicle lights, provides lamps with different functions and uses to the OEM market and aftermarket. - TYC Brother's Chongqing plant began mass production during the first quarter of 2012, and is also actively entering the new market of lamps for highperformance energy-saving streetlights. The company has obtained China's streetlight energy-conservation mark and 3C certification. Dun Young - Dun Young was established in 1979, and became a subsidiary of the Liton Electronic Group in 1992. - Dun Young has successively developed such new products as auto anti-theft devices, tire pressure detectors, and window/skylight controllers. Actron Technology - Actron currently supplies five of the world's eight leading OEM alternator assembly plants. Via these Tier 1 vendors, Actron diodes are used by six of the world's major vehicle brand families. - Actron is a vendor of motor vehicle rectifier diodes. Along with Dunnan Technology and DAR Technology, it is also a member of the Liton Electronic Group. It chiefly supplies the leading global alternator manufacturer Valeo, and began supplying Denso and Mitsubishi in the wake of Japan's 2011 Tohoku earthquake. It has since entered the supply chains of such major European, American, and Japanese brands as Toyota, Nissan, Ford, GM, Mercedes-Benz, BMW, and Volkswagen. It currently enjoys a global market share of at least 40-45%, and is the world's largest auto rectifier diode manufacturer. E-Lead - E-Lead has developed products that crossover into the auto multimedia and automatic communications, IA & communications, and auto electronics markets, making E-Lead one of Taiwan's leading auto electronics companies. - E-Lead has introduced an exclusive "all-planar multifinger touch-control audiovisual navigation device." - The “intelligent on-board computer” (EL-817C) introduced by E-Lead employs an Android system, and is equipped with a high-resolution screen and allplanar design. It can support a wireless link with most smartphones, and can synchronously display steering, navigation, and multimedia information. It enables the driver to use any kind of cell phone app in the vehicle, or use cell phone navigation functions via the on-board computer, ensuring the convenient use of resources. - On-board computer, entertainment, and communications systems Tung Thih - A specialized auto electronics vendor. Tung Thih is the world's third-largest reversing radar vendor, behind only Bosch and Valeo. - Tung Thih is Taiwan's first major reversing radar OEM vendor, and enjoys a market share of approximately 50%. Tung Thih's reversing radar units are used by first-line auto makers in China, Japan, and North America, and the company has a market share of roughly 50% in China. Delta Electronic - Delta is a leading world-class supplier in many product areas. - The company started out manufacturing coil-type magnetic elements, and is now an important global vendor of magnetic and heat dissipation elements. - Delta has extended its core technology into the area of power supplies, and is the world’s largest AC power supply vendor. - In 2012, the company's most important products consisted of power supplies (power electronics), which accounted for 62% of sales, energy management products (17%), smart green life products (18%), and other (3%). Luxgen - Luxgen is a member of the Yulon Group, which consists of Yulon Management, Yulon Motor, Yulon Nissan Motor, Luxgen, Haitec, and CEC. - Luxgen is Taiwan's leading specialist in auto electronics systems integration. - Luxgen’s foremost goals consist of setting up operations in the Russian market and develop sales in the Middle East. - Yulon Nissan earned approximately NT$50 billion from auto parts exports in 2012; the leading recipients of these exports included Thailand, Malaysia, the Philippines, China, Japan, Egypt, Indonesia, Vietnam, and Korea. In 2013, Yulon Nissan will continue to expand its range of exported parts and recipient countries, giving the company even more sales growth momentum. Mosa Industrial Corp. - Mosa is the world's fifth largest producer of compound gas generators, and possesses mass production technology for this type of product. Mosa offers different gas generator types, and can be used in safety airbag systems with different locations. For instance, Mosa provides gas generators that can be used in driver's seat airbags, passenger seat airbags, side airbags, and curtain-type airbags. - Mosa is the world's fifth-largest producer of compound gas generators. - Mosa plans to invest approximately NT$2.0 billion in plant expansion and the purchase of equipment for production of auto airbag elements. Mosa expects that capacity will reach 12 million gas generators in 2014, and projects that annual sales will reach NT$7.0 billion at that time. Cheng Shin Rubber Ind. Co., Ltd. - Cheng Shin chiefly produces inner tubes and tires for rickshaws, bicycles, and motorcycles, ATV tires, tires for agricultural and industrial equipment, truck and bus inner tubes and tires, and radial tires for sedans, light trucks, and trailers. - Cheng Shin (Maxxis) leads Taiwan's tire industry in terms of sales and exports, and is the tenth largest tire company in the world. - Cheng Shin plans to invest a total of NT$20.0 billion in 2013, which is on a par with last year. It also plans to continue acquiring next-stage equipment for its new Chinese plants at Chongqing; Jimei, Xiamen; and Zhangzhou, and its new plant at Douliu in Taiwan. After stage-one equipment at these plants is operating at full capacity around the end of 2013, Cheng Shin will prepare to perform stage-two expansion tasks. 30 Nangang 31 - Marketing its products worldwide under the "Nankang Tire" and "Nangang" brand names, Nangang chiefly produces radial tires for sedans, RVs, four-wheel drive vehicles, and commercial vehicles. Nangang has a long-term partnership with Japan's Yokohama Tires. Nangang's brands include "Nankang Tire" and "Sonar." - Nankang has obtained Taiwan’s first rolling resistance machine with the blessing of the prominent European certification organization TÜV SÜD Automotive GmbH, and has established a rolling resistance laboratory at its Xinfeng plant. This laboratory performed EU RRC candidate laboratory measurement calibration approval procedures. Calibration approval procedures were completed in September 2012 after a sixmonth process, making Nangang Taiwan’s first tire manufacturer to complete these procedures. The laboratory received TÜV SÜD RRCm laboratory automotive certification in a ceremony held on November 6, 2012. Orange Electronic Co., Ltd. - Orange Electronic chiefly engages in the research and development of wireless tire pressure monitoring systems. The company sells its products to OEM manufacturers and on the aftermarket bearing its own brand name, and also performs ODM design work. - Orange Electronic's wireless tire pressure monitoring systems have received telecommunication certification in many countries, including CC (USA), E-mark (Europe), ARIB (Japan), MIC (Korea), IC (Canada), and Taiwan's telecommunications certification. Kenda Rubber Industrial Co., Ltd. - Kenda has engaged in technological cooperation with America's Cooper Tire, and has been the latter's exclusive agent in Taiwan since 2000. Selling its products under the "Kenda" brand name, the company chiefly produces inner tubes and tires for bicycles and motorcycles, ATV tires, tires for agricultural and industrial equipment, truck and bus inner tubes and tires, and radial tires for sedans, light trucks, and trailers. - Kenda had sales revenue of NT$6,462,549,000 in 2002. Seeking to seize opportunities in the European tire market, Kenda Rubber re-established a European subsidiary in May 2013, and plans to initially target the market for high-end bicycle tires costing over US$30 apiece. It is hoped that this strategy will enable Kenda to achieve steady growth in excess of 20% annually in the high-end bicycle tire market. After the Kenda achieves good brand recognition, the company plans to tackle the European sedan tire market. Federal Corporation - Federal tires are sold worldwide under the company's "Federal," "Hero," and "Maxon" brand names. - Federal purchased land in the Guanyin Industrial Park, Taoyuan County, Taiwan in 2012, and plans to invest NT$6.0 billion in the construction of a sedan tire production line with an annual capacity of 6 million tires. This plant will have a greater capacity than the company’s existing Zhongli plant in Taiwan and Nanchang plant, Jiangxi Province in China (the latter plant has an annual capacity of 4.5 million tires). That the soonest, the Guanyin plant may enter mass production before the end of 2014. Federal may have combined sales in excess of NT$10 billion in 2013. Sirius Light Technology Co., Ltd. - In existence for 25 years, Sirius produces lights for cars and motorcycles, which are sold worldwide. The company's main export products include LED light bulbs, lamps, signal lights, fog lamps, vehicle lights, signal lamps, and LED fog light bulbs. - Sirius has passed TS16949 international quality assurance standard certification. Papago - Papago Inc. is a prominent developer of electronic navigation systems, and chiefly produces navigation systems sold under its "Papago!" brand name. It is the world's leading vendor of auto navigation systems. - In the area of driving recorders, the high-end Papago! auto driving recorder incorporates a forward collision warning system (FCWS), a vehicle lane departure warning system (LDWS), GPS, recorded road scenes with road names, and a speed limit detection system. Mobiletron Electronics - Mobiletron chiefly specializes in auto electronic part, auto safety control system, and automotive tool R&D and production. It markets its products directly in over 100 countries worldwide. Mobiletron chiefly produces auto engine electronic control parts, wireless tire pressure monitoring systems, reversing safety video systems, vehicle driving recorders, and electric motor vehicles tools. - Mobiletron has actively entered the automotive wireless tire pressure monitoring system, reversing safety video system, and vehicle driving recorder markets. - Mobiletron is vigorously developing TPMS products, and is also active in the aftersales retrofit market. SuperAlloy - SuperAlloy is Taiwan's largest closed-mold forging company, and chiefly produces forged aluminum alloy rims, golf club heads, and aerospace parts. It is one of the world's three leading suppliers of forged automotive wheel rims. - SuperAlloy’s products are supplied to automakers including BMW, Mercedes-Benz, Ferrari, Porsche, GM, Ford, Chrysler, Toyota, and Jaguar. SuperAlloy is Taiwan’s sole manufacturer of forged rims selling its products directly to the foregoing automakers. - SuperAlloy is making vigorous efforts to reduce the weight of vehicles, and sales of its products to the finest automakers in highly environmentally-conscious Europe continue to grow. Apart from forged rims, SuperAlloy has also begun developing various auto chassis parts for its customers, and is continuing to develop aerospace products. 32 Development opportunities for Taiwan's auto parts industry and future trends Propelled by the whole vehicle industry, Taiwan's auto parts industry has adopted from TPM to TPS boost production efficiency, and has strengthened its design and manufacturing capabilities. As a result, the industry has acquired the ability to respond to the market's rapid changes, developed effective aftersales service systems, and can effectively produce OEM parts. 1. As motor vehicles become more intelligent, there has been increasing demand for driver safety systems and other electronic products, which has boosted opportunities in the field of image processors and relevant applications. Another important trend is the development of lightweight parts for electric vehicles. The auto industries and auto markets of emerging nations are growing significantly faster than their counterparts in the developed world, and emerging markets consequently have rapidly increasing demand for auto parts. Taiwan is vigorously promoting the development of its auto electronics industry, and domestic auto parts manufacturers should embrace the testing and certification of auto electronics and key parts and products for electric vehicles in order to take advantage of sales opportunities in the BRIC markets. 2. Taiwan possesses a comprehensive ICT supply chain, domestic firms enjoy competitive advantages in many information product categories, and Taiwan ranks first globally in the supply of certain key parts. The IC, semiconductor, and sensor design and manufacturing capabilities of Taiwan's ICT firms can be employed in the development 33 and production of auto electronics system power elements and controllers, etc. Furthermore, Taiwan possesses an extensive semiconductor industry chain, and some semiconductor companies have crossed over into the field of auto electronics. In connection with Tier 1 companies such as Bosch, Delphi, and Denso, Taiwan's producers of onboard information/communication products are taking advantage of Taiwan's semiconductor product attributes and strengths to engage in semiconductor element R&D and production as Tier 2 firms (examples include Freescale, Infineon, and Renesas, etc.), which will give them opportunities to enter assembly plants' supply systems. Taiwanese firms can use skills honed in the aftermarket to seek OEM opportunities and pursue locally-developed technological applications. As a consequence, Taiwan's parts industry is in an extremely advantageous position. 3. As the pioneering electric vehicle project continues to move forward, and a growing number of demonstration points emerges, we can look forward to the formal introduction and eventual spread of electric vehicles, which will spur the upgrading of the electric vehicle industry. 4. High-end cars with driver safety systems are being introduced continuously, and many countries are drafting and implementing laws requiring the installation of safety systems. As a result, intelligent protective and sensing systems are gradually becoming standard equipment on new vehicles. Taiwan's manufacturers producing in-house brand vehicles and relevant research units are continuing to develop relevant systems. 5. As the relationship between the auto industries of Taiwan and China grows increasingly close. It is expected that interaction and collaboration between the auto industries in Taiwan and China will grow even closer after Chinese commercial vehicles meet Taiwan's 5th environmental protection regulations. 6. Innovative R&D and adding of value to parts The auto parts industry's main business approaches at the current stage include strategic alliances, mergers, cooperation in the development of key technologies, multi-brand marketing, and niche market. Parts manufacturers have long been entering strategic partnerships in which parent plants have licensed key technologies, and should aim for cooperative production of key parts in the future. Companies can rely on this strategy to enhance parts quality and acquire design and R&D capabilities, enabling them to perform innovative R&D and add greater value to their products. 34 35 Manufacturers Directory Actron technology corp.,Car Semicon E-lead electronics Co., Ltd. No.22, Sec.2,Nan-Kan Rd., Luchu Hsiang, Taoyuan, Taiwan Tel 886-3-3115555 Fax 886-3-3119977 www.actron.com.tw No.37 Gungdung 1st Rd.,Shengang Shiang,Changhua,Taiwan Tel 886-4-7977277 Fax 886-4-7977165 www.e-lead.com.tw Cheng Shin Rubber Ind. Co., Ltd. Eagle eyes traffic Ind. Co., Ltd. 8th Fl, World Trade Building 50, Sec. 1 ShinSheng S. Rd.,Taipei, Taiwan Tel 886-2-23937451 www.cst.com.tw No.27, Lane 764 Chung-shan N. Rd., Yung Kang Dist.,Tainan, Taiwan Tel 886-6-2336618 Fax 888-6-2335708 www.eagleeyes.com.tw Delta ho electronics Inc. Fine Blanking & Tool Co., Ltd. No.334, Sec.2, Shin-sheng Rd., Chung-li City,Taoyuan ,Taiwan, Tel: 886-2-87972088 Fax: 886-2-4532574 www.deltaww.com No.3, Kon eighth Rd., Chang hine Industrial Park, Hsen-Kang, Changhua, Taiwan Tel 886-4-7990118 Fax 886-4-7990706 www.fineblanking.com.tw Depo Auto Parts Ind. Co., Ltd. Taipei office: 5F, No. 161, chien kuo south Rd., Sec. 1, Taipei, Taiwan Tel 886-4-7722311 Fax 886-4-7710725 www.depoautolamp.com DunYoung liteOn Co., Ltd. 3F,392,Ruey Kuang Rd,Neihu,Taipei 114, Taiwan. Tel 886-2-28782888 Fax 886-2-87982306 www.dunyoung.com Hin Chong Group & Hsin Chong Machinery Works Co. Ltd. 49-5 Fan-tze-liao, Rei-yuan-li, Dahsi, Taoyuan 335 Taiwan Tel 886-3-3801221 Fax 886-3-3894261 www.hsin-chong.com No.22 Kaonan Rd., Jenwu Dist. Kaohsiung, Taiwan Tel 886-7-3438301 Fax 886-7-3425116 www.juili.com.tw No39, Sec.3, Chung Ching Rd., Ta-Ya, Taichung Hsien, Taiwan Tel 886-4-25683366 Fax 886-4-25669925 www.more.com.tw MOSA industrial Co., Ltd. Kenda Rubber Ind., Co., Ltd. No.146, Sec. 1, Zhongshan Rd., Yuanlin Township, Changhua County 510, Taiwan (R.O.C.) Tel 886-4-8345171 www.kenda.com.tw No 18 Kehu 3rd Rd, Huwei,Yunlin,,Taiwan Tel 886-5-6361867 www.twmosa.com Nankang Rubber Tire Co, Ltd Ken Sean Industries Co., Ltd. No.501 Sec.6,Chang-Lu Rd., Fu-shin Shiang, Chang-hwa, Taiwan Tel 886-4-7772121 Fax 886-4-7775721 www.kensean.com.tw Rm. 608, 6F., No.136, Sec. 3, Ren’ai Rd., Da’an Dist., Taipei City 106, Taiwan (R.O.C.) Tel 886-2-27071000 www.nankang.com.tw Orange Electornic Co.,Ltd Gordon Auto Body Parts Co., Ltd. No. 48,Nieh Hsi Road, Lu Chu Hsiang, Taoyuan Hsien, Taiwan Tel 886-3-3244011 Fax 886-3- 3248375 www.gordon.com.tw 3F, 3 Zhong Xing Rd., Sec. 3, Xindian, New Taipei City, Taiwan Tel 886-2-55910888 www.luxgen-motor.com.tw Mobiletron electronics Co., Ltd. JUI Li Enterprise, Co., Ltd. Federal Co., Ltd. No.369 ,SEC 2 CHUNG HWA RD, CHUNG LI (320) TAO YUAN,TAIWAN Tel 886-3-4522156 www.federalcorporation.com LUXGEN Motor Co., Ltd. Lioho machine works., Ltd. No.334, Sec.2, Shin-sheng Rd., Chung-li City,Taoyuan County,Taiwan, Tel 886-3-4532131 Fax 886-3-4532574 www.lioho.com No.15,Lane 81, Sec.2, Tanfu Rd., Tanzih, Taichung 427, Taiwan Tel 886-4-25351558 www.orange-electronic.com 36 PAPAGO!,Inc. TYC Brother Industrial Co., Ltd. 4F., No.200, Gangqian Rd., Neihu Dist., Taipei City 114, Taiwan (R.O.C.) Tel 886-2- 87510123 www.papago.com.tw No.72-2 Shin-Leh Rd, An-Ping Industrial District 702 Tainan, Taiwan Tel 886-6-2658781 Fax 886-6-2630715 www.tyc.com.tw Sirius Light Technology Co.,Ltd Universal Global Scientific Industrial Co., Ltd. 63, Linding St., Ren I Tsun, Rende Shiang, Tainan Hsien 717, Taiwan, R.O.C. Tel 886-6-2494811 www.ns-sirius.com SuperAlloy Industrial Co., Ltd No.80, Sec. 3, Yunke Rd., Douliu City, Yunlin County 640, Taiwan (R.O.C.) Tel 886-5-5512288 www.superalloy.tw Tong yang Group(TYG) No.98, Section 2, An Ho Rd., Tainan, Taiwan Tel 886-6-3560511 Fax 886-6-3560643 www.tyg.com.tw Tung Thih electronics Co., Ltd. No.42, Neicuo St., Lujhu Township, Taoyuan County , Taiwan Tel 886-3-3222902 Fax 886-3-3226281 www.tungthih.com 141, Lane 351, Taiping Road, Sec. 1, Tsao Tuen, Nan-Tou,Taiwan Tel 886-49-2350876 Fax 886-49-2352347 www.usi.com.tw
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