Taiwan's Leading Electronics Makers May Jointly Tap China's Auto Electronic Market

Taipei, Sept. 28, 2009 (CENS)--With Ministry of Economic Affairs to push the formation of TTIA (Taiwan Telematics Industry Alliance), Taiwan's leading electronics companies, including Hon Hai Group, Quanta Computer Inc., Compal Electronics Inc. and Asustek Computer Inc., are likely to join the alliance to explore China's market for auto electronics, according to industry sources.

The sources indicated that Taiwan's electronics companies have been deploying their business operations in the emerging segment for auto electronics for years, with Hon Hai Group engaged in wires and connectors, Quanta in automotive navigation systems, Asustek in LED thermal dissipation systems, Compal and Micro-Star International Co. in car audio.

Venturing into auto electronic markets can open a new window for Taiwanese electronics makers, especially when their major products, including PCs and handsets, can't assure them of rosy profits now as before. Once succeeding in joining large-sized carmaker's supply chain of auto electronics, industry insiders noted, they will secure strong and steady growths in business operations for the next decade.

The IEK (Industry and Economics Knowledge Center) under Taiwan's government-funded ITRI (Industrial Technology Research Institute) estimates production value of the global automotive semiconductor industry to hit US$18.1 billion this year, and to surge to US$24 billion in 2012 at an average annual growth rate of 12% during the span.

Considering Taiwanese electronic makers' global competitiveness, MOEA has been planning to form TTIA to seize the huge business potential. Accordingly, TTIA will initially zero in on the auto electronics market in China, and then will seek cooperation with U.S. and European carmakers.

Thanks to the government's stimulus policies in the domestic market, along with the recent global economy recovery, sales in China's car market is estimated to surge 8-10% from 2008 to 10.13-10.3 million units this year.