Southern Taiwan Auto/Motorcycle Parts R&D Alliance Formed

Taipei, Jan. 8, 2008 (CENS)--After two years of effort, Tainan County Government recently announced the establishment of the Southern Taiwan Auto/Motorcycle Parts R&D Strategic Alliance, comprising 75 companies.

Tainan County mayor Su Huan-jhih claimed that the alliance is an important step in upgrading and integrating auto/motorcycle parts suppliers on the island.

Different members of the alliance have formed seven R&D sub-alliances covering various product categories including auto lamp, side mirror, power-train, machinery hardware, brake, module interconnect device (MID, or 3D circuit), and green composite material. Another two sub-alliances are being prepared, including the mold/die and plastic injection.

A senior official of STIR (Southern Taiwan Innovation and Research Park), which is operated by Industrial Technology Research Institute (ITRI), pointed out that southern Taiwan is the production and development citadel of auto/motorcycle parts on the island and related machining processing and mold/die development industries have also been enjoying prosperous development. STIR has successfully urged the establishment of a similar strategic alliance between textile companies in southern Taiwan and is happy to witness formation of the new alliance.

Many major auto/motorcycle parts makers have joined the new R&D alliance, including leading auto-lamp suppliers TYC Brothers Industrial Co., Ltd., Depo Auto Parts Ind. Co. Ltd., Eagle Eyes Traffic Industrial Co., Ltd., as well as leading players in each of the said seven fields.

Taiwan is currently the world's largest export nation of aftermarket (AM) auto-parts products, while a big group of major suppliers are clustering in southern Taiwan. The companies are internationally famous with their high-quality, reasonably-priced products but most of them tap the global market individually rather than collectively.

When Taiwan-made auto/motorcycle parts are facing fierce price-cutting competitions from rivals in low-cost nations, the better resource integration and the advantage achieved by the clustering effect are expected to create new competitive advantages by the collective power to break the barriers ahead.

With the establishment of R&D strategic alliance, members are expected to jointly develop new products and globally market their quality products, as well as train talented professionals and initiate cooperation projects by utilizing avliable government and academic resources.

In addition to resource integration and professional cultivation, Su claimed, an improved investment environment and increasingly industry clusters are also very vital for upgrading the island's global competitiveness with its auto/motorcycle parts products. So, he added, Tainan County Government is actively planning for the establishment of a auto/motorcycle parts zone in the Yongkong Technology Industry Park.