Quake in Japan May Bring Bounty to Taiwan Auto-Parts Makers

Taipei, April 11, 2011 (CENS)--The massive earthquake and tsunami on March 11 kinked the automotive supply chain in Japan, creating potential chances for auto-parts suppliers in Taiwan to fill the damaged voids.

Industry sources say that several leading auto-parts makers will expand cooperations with Japanese carmakers, including Hota Industrial Manufacturing Co., Ltd., a tier-one transmission gearbox and torque converter supplier to global automakers, Right Way Industrial Co., Ltd., largest automotive piston manufacturer in Taiwan, Ta Yih Industrial Co. and affiliated TYC Brothers Industrial Co., Ltd., major original equipment (OE) and aftermarket (AM) auto-lamp suppliers etc.

Some Japanese private equity funds have expressed willingness to invest in auto-parts suppliers in Taiwan after recognizing Japanese automakers' intention to find new suppliers on the island.

Hota says it has heard rumors of the above move but has not been directly contacted.

Industry experts say that, with more auto-parts makers in Taiwan tapping into Japanese automakers' supply chains, Taiwan suppliers' technical level will likely be enhanced, with their production scale also to be raised and global competitiveness upgraded from the capital injections.

The recent calamity in Japan may force their auto parts suppliers to rethink the traditionally exclusive policies designed to protect proprietary technologies, and place orders with Taiwanese suppliers.

Parts suppliers in Taiwan may move from tier-three to two or even directly to tier-one level due to the quake and tsunami in Japan.