TEEMA sets up auto-electronic committee

Taipei, Feb. 16, 2005 (CENS)--Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) has set up an auto-electronic committee, which is designed to help local makers form a cluster effect to effectively tap the global market for auto electronics parts.

The new committee was initiated by TEEMA secretary general Joseph Cheng and former president Shi Chin-tay of the Industrial Technology Research Institute (ITRI).

Many local electronic and information technology (IT) makers have mapped out plans to tap the auto-electronic business, including VIA Technologies Inc., Lite-On Technology Corp., Asustek Computer Inc., Hon Hai Precision Ind. Co. Ltd., BenQ Corp. and Universal Scientific Industrial Co., Ltd.

VIA has developed its auto electronic-related chip business for several years in a bid to the long-term domination of big semiconductor makers in the 3C (computer, communication, and consumer electronics) market by setting up a solid foothold in the auto-electronic sector. Lite-On and Asustek have respectively grouped their auto-electronic R&D teams, which are trying to enter the new field with IC-design capabilities.

Hon Hai, currently the world's largest maker of connectors, barebone PCs and game consoles, is actively trying to tap the automobile-connector business. Other firms, such as BenQ and Universal, are cooperating with local and foreign automakers as well as R&D institutes to develop in-car multimedia and navigation products.

According to TEEMA's Cheng, the auto-electronic business has its special industry environment. Most orders from big international automakers usually go to a few globally famous auto-parts brands such as Delphi of the U.S. and Denso of Japan, while Taiwan makers used to top such business by supplying only low-value-added parts and components to those first-tier suppliers.

In the aftermarket, Cheng pointed out, most local small- to medium-sized enterprises (SMEs) in the auto-electronic sector could develop their businesses individually rather than collectively, and the new TEEMA committee is expected to act as a communication platform for those local players.

Universal's president Wu Huei-huang was selected as the first director of TEEMA's new auto-electronic committee, which will comprise various sub-committees related to IT, communication, auto-electronics and semiconductor fields. The new committee will invite representatives from the government, academic institutes and research units to join.

According to statistics compiled by Strategy Analysis, the driving information-related auto-electronic sector enjoyed a compound annual sales growth of 7% in the past few years, compared to 8% for the chassis-related sector and 14% for the safety system-related auto-electronic segment.

Industry sources said the in-car computing-related products are expected to enjoy the highest growth momentum.