Taiwan's Kinpo Group announces plans to tap auto-electronic business

Taipei, May 4, 2005 (CENS)--Taiwan's Kinpo (Compal) Group will more aggressively venture into the trendy auto-electronic business, according to chairman Rock Hsu.

Hsu pointed out that his group has mapped out an overall strategy to jump on the auto-electronic bandwagon, in that the flagship company Compal Electronics Inc. will target the in-auto liquid crystal display (LCD) TVs; Kinpo Electronics Inc., the global positioning system (GPS) products; and AcBel Polytech Inc., power-supply systems.

Kinpo is the latest information technology (IT) conglomerate in Taiwan to announce plans to tap the auto-electronic business, trailing Hon Hai, Quanta, Asustek, Lite-On, and Universal Scientific, etc.

Kinpo Group (including affiliates such as Kinpo Electronics Inc., Compal Electronics Inc., Toppoly Optoelectronics Inc., Compal Communications Inc., International Semiconductor Technology Ltd. Etc.) registered revenue of over NT$250 billion (US$7.96 billion at US$1: NT$31.4) last year, and the figure is expected to top US$10 billion this year.

Hsu said that the auto-electronic line would enjoy bright prospects and that his group's overseas affiliates Cal-Comp Electronics (Thailand) Co., Ltd. (CCET) set up cooperation strategic alliances with automakers in Thailand many years ago. After intensive evaluation in the past few years, Hsu decided to join the auto-electronic business thoroughly.

Hsu claimed that the Kinpo Group is very capable of developing and manufacturing portable devices and has targeted GPS navigation products.

The chairman added that IT and electronic makers would must have chances in auto-electronic business as more and more IT products are introduced into automobile designs, including GPS navigation, multimedia, LCD monitor, broadband Internet connection, connector, and engine electronic control unit (ECU).

According to Hsu, auto-electronic devices and equipment now account fro only about 25% in Asia's car models and most of the products are low-level IT items, compared with about 40% for European cars. In addition, the auto-electronic supply chains of international automakers have gradually been open to global suppliers.