Taiwan's powerhouse electronics industry has given a lift to many traditional manufacturing sectors on the island, including the auto-parts industry, which is enjoying a new spring of blossoming success in high-end electronic models in the midst of intense competition. The keys to this success are cutting-edge technology, superior components, and most importantly an army of talented R&D professionals.

This R&D talent has been busily developing newer and better products over the last several years. These efforts have produced a number of pioneering products that have kept Taiwan a good many steps ahead of would-be copycats and helped producers keep margins relatively high.

Taiwan's edge in the electronic auto-parts market has been further honed by the pricing and quality edge local producers enjoy over many of their overseas rivals thanks to more efficient management and mold/die development capability.

This winning combination of technology, quality, and price has made Taiwan's electronic auto parts supremely competitive in the international market, both in the aftermarket (AM) and original equipment (OE) segments.

More and more local electronic auto-parts and system makers are cooperating with local automakers to jointly develop industry-defining products for both the OE and AM markets. These products, say some senior industry analysts, are beginning to shake the global electronic auto-parts market by bringing competitively priced technology to a new level, and with many more on the way Taiwan's position in the global automobile industry in the coming few years will be tremendously enhanced.

In-Auto Telematic Systems

One of the companies leading the technological charge is Hamg Shing Technology Corp., which developed the world's first and still most advanced in-auto telematic system, the KCY 700. Since its debut, the KCY 700 has become a near-standard feature on most Taiwan-produced Nissan cars.

In addition to its unmatched development capability in high-tech telematic systems, Hamg Shing is also a leading global supplier of auto antennas (one of the world's top five such suppliers, with a monthly capacity of over one million units), cellphone accessories (an important original equipment manufacturing, or OEM, supplier to many big international brands, such as Motorola), and auto electronics (in-car entertainment systems and hands-free car kits). The company is also an important electronic auto-parts and systems supplier to many local automakers, including Nissan, Ford, Honda, and Mitsubishi.

Hamg Shing assistant vice president Patrick Wei says that his company has always sought to keep ahead of its rivals on both technology and quality since its founding in 1981. This policy, he says, has enabled the company to become a market leader in several product categories.

For example, the KCY 700 is currently the world's most advanced telematic system integrating telecom, global position system (GPS) navigation, call-center support services, security, driving safety, value-added services, and remote control (through call-center or specific settings) into one device with an integrated all-in-one control panel, says Wei. The system can also be integrated with an in-car stereo and/or audio/video entertainment system.

According to Wei, the KCY 700 can serve as both a driver's cellphone handset and a car phone. Such functions can be operated by a set of peripheral devices, including speed-dial buttons on the steering wheel, an intelligent information-display back mirror, and a built-in vice-recognition module.

The GPS navigation functions of the KCY 700 include both an electronic map and voice route-direction function displayed on a thin film transistor-liquid crystal display (TFT-LCD) screen. The driver can also dial up the call-center at the push of a button to get navigation and other travel information.

The KCY 700 also has impressive security features. If a driver is the victim of a carjacking, he can notify the police via a call center by pushing a single button. If the vehicle is stolen or towed by the police, sensors on the car notify the call-center and/or any assigned phone number. Under both conditions, the car will be immediately locked and tracked by the call-center to help the driver and police in responding.

The KCY 700 also links with sensors in the bumpers, air bags and other places of a car to instantly report accident information (time, degree and location) to the call-center or an assigned phone number.

Even the inconvenience of locking one's keys in the car is solved by the KCY700, which can lock and unlock the vehicle through remote control commands. Using the same technology, drivers that forgot to lock the car doors can ask the call center to remotely lock the vehicle. Drivers can also turn off the engine or cut the fuel supply by remote control.

The KCY 700 also has robust navigation and travel information functions. The device can provide tips on nearby scenic spots, restaurants, and gas stations through voice communication with the call-center or peripheral display devices.

For the more budget-minded, Hamg Shing offers a pared-down version of the KCY 700 called the KCY 750N.

Hamg Shing has also applied its R&D talent to diversify into new fields, including the rollout of a new series of 5-inch to 10.4-inch in-car TFT-LCD screens and built-in or portable digital versatile disc (DVD) players.

Wei claims that his company has developed the world's most comprehensive technology platform and can integrate various applications through different interfaces. Hamg Shing's competitive edge, according to the assistant vice president, also lies in the company's strong manufacturing capability and its production capacity in Taiwan and mainland China.

In Taiwan, the company employs about 600 people, many of whom are engaged in R&D and international marketing. In China, the company runs large-scale mold/die development and production plants with a total workforce of about 3,000 people.

Technological Elite

Another leading auto electronic maker with strong R&D ability is Elitech Technology Co. Ltd., which has been aggressively developing its auto parts business following its recent acquisition of some affiliates of the Ta Yih Group in Taiwan, which is currently the largest OE auto lamp supplier in Taiwan and one of the world's largest suppliers of AM auto/motorcycle lamps.

Elitech joins its impressive capacity in mold/die development, design, and technology R&D with a division-of-labor production scheme in Taiwan and mainland China. It also offers a comprehensive selection of auto locks, switches, power window switches, harnesses, and other auto accessories. These advantages, combined with active international marketing efforts, have made Elitech a key OE supplier in Asia, North America and the Middle East.

"Auto parts makers in Taiwan can match the Japanese on quality and beat them on pricing," says C.T. Chen, assistant president at Elitech's sales technical division. "On the other end, it will take many years for competitors in mainland China and other Southeast Asia nations to catch up with us on quality, so Taiwanese companies are well poised to develop overseas OE markets."



Chen claims that Taiwan auto parts suppliers are rapidly defeating more and more overseas rivals to win OE orders from automakers not only in Asia but also around the world.

Elitech is QS-9000 and ISO-9001 approved. The company is a major OE supplier of key sets, heater controls, power window switches and headlamps to most local automakers, and it also supplies these products to many world-class brands.

According to Chen, Elitech owes much of its competitive advantage to its large mold/die plants in southern Taiwan. The plants develop numerous molds and dies to expand Elitech's product lines and, in some cases, meet the needs of other affiliates for urgent, high-quality items. The plants also develop many high-precision plastic injection and zinc/aluminum alloy cast dies for local optoelectronic and information technology makers.

David Ou, project manager of Elitech's domestic division, says that his company is the only local maker of HID auto headlamps and E-mark-certified conversion kits. The company is also extending its high-level R&D and design capability to other value-added auto parts, including high-end heater control assemblies, which are supplied to China Motor Corp. on an original design manufacturing (ODM) basis.

In March 2001, Elitech's mainland subsidiary merged with Witte-Strattec LLC, the largest lock and key set maker in the U.S. and changed its name as Witte-Strattec China Co. (in which Elitech has a over 40% stake). The merger has given Elitech low-cost production support from the mainland affiliate and helped it to tap business from many major car production ventures in mainland China, including the Southeast Motor Corp. (a subsidiary of Taiwan's China Motor), Shanghai GM, Shanghai VW, Hainan Mazda, and Changan Ford.

Wu claims that his company is upgrading its product line with the rollout of advanced new items, such as transponder keys with built-in chips. It also plans to introduce high-end logic controls and advanced automatic temperature control systems.

Universal Voltage HID Ballasts

Acumen Optoelectronics Inc. has been pushing the technology threshold through its leading-edge high-intensity discharge (HID) lamp ballasts, bulbs, and relevant accessories, which are mainly for automobile applications.

Acumen recently unveiled a new 8V~32V HID ballast, making the company the world's first supplier of such a device.

Acumen sales manager Jackson Chen says that the full-range input power compatibility of the HID ballast makes it suitable for use on both cars (12V) and trucks (24V), making it ideal for AM auto-lamp upgrading.

Another advantage of the advanced HID ballast model, according to Chen, is its sophisticated electronic circuitry, which allows the unit to operate with very low in-rush power to switch on the high-voltage HID bulbs. This greatly enhances the durability and safety of the HID system and makes the HID system compatible with sophisticated in-car computer systems without the need to modify the original computer settings. Acumen's HID ballast is suitable for almost all car models, including Europeans models that previously required computer resetting, as the Mercedes-Benz W203, W211, W220 and BMW E38, E39 and E46.

According to Chen, all of Acumen's HID ballasts match the reliability and durability (about 3,000 hours) of rival models made by big international brands such as Philips and Osram, yet they are much more competitively priced.

Acumen is also developing a system that integrates a high-voltage starter and the HID bulb into one device. The innovative system is expected to greatly elevate efficiency and cut costs of the HID auto lamp systems.

Acumen currently outsources most of its components from dedicated satellite plants in Taiwan, with most of its own 40 or so employees engaged in R&D work. The company has a monthly capacity of about 5,000 HID ballasts and 10,000 HID bulbs, about 60% of which are exported.

With its technology-leading HID systems rapidly gaining popularity in major markets such as the U.S., Canada, and Europe, Acumen expects its revenue to rise 10-fold this year to about NT$200 million (US$6.08 million).

All of Acumen's HID ballast and bulb models are CE-certified, and some are E-mark pending.

Contact information on companies covered by the article:

Hamg Shing Technology Corp.
5/6 F., No. 23, Sec. 2, Keelung Rd., Taipei, Taiwan
Tel: (886-2) 2377-2226
Fax: (886-2) 2738-0206
Website: www.hamgshing.com/
E-mail: sales@mail.hamgshing.com.tw

Elitech Technology Co., Ltd.
No.22, Wuchuan 3rd Rd., Wugu Hsiang, Taipei Hsien 248, Taiwan
Tel: (886-2) 2299-0696
Fax: (886-2) 22990698
Website: www.elitech.com.tw

Acumen Optoelectronics Inc.
3F, No.12, Lane 122, Sec.2, Kanyuan St., Shulin, Taipei Hsien, Taiwan 238
Tel: (886-2) 2668-9212
Fax: (886-2) 2668-9204
Website: www.acumenopto.com.tw
E-mail: tonylin.acumen@msn.hinet.net