TEEMA chairman urges makers to develop auto-electronics biz

Taipei, June 13, 2005 (CENS)--Rock Hsu, chairman of Taiwan Electrical and Electronic Manufacturers' Association (TEEMA), Kinpo Electronics and Compal Electronics, recently claimed that he is quite optimistic about the development of auto electronics and he urged Taiwan to strengthen cooperation ties with mainland China in related fields.

According to Hsu, China's annual automobile production volume is expected to reach 10 million units in 2010, making the nation the world's largest automobile market. Aided by strong R&D and manufacturing abilities in the electronics field, Taiwan's auto-electronics makers are expected to enjoy highflying growth if they grab opportunities in China.

Hsu added that auto-electronics will be an important turning point for the transformation of the local electronics industry and will be one of the most important lines on the island in the future.

In Asia, Hsu analyzed, electronic parts have accounted for 25% of a car's total cost, compared to some 40% for a European or American car model. In 2015, the chairman predicted, the ratio is expected to shoot up to outstrip 60%. Hsu said that a group of leading information technology (IT) and electronics makers have jumped on the bandwagon and are actively developing businesses in related fields.

Hsu urged local auto-electronics makers to create a win-win status for both sides of the Taiwan Strait. In the past, he pointed out, the supply chains of global automakers hard to penetrate but are loosening now due to automakers' cost concerns.

Hsu also added that Compal Group would join the IA (information technology and automotive) auto-electronics development project promoted by local Yulon Group, the island's largest automobile-manufacturing conglomerate and the Ministry of Economic Affairs (MOEA).