February 24, 2024

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Taiwan Chip Industry to Win Big in Electric Vehicle Transition

Taiwan’s electronics companies, already making waves as the biggest exporter of chips to the world, are poised to take advantage of the global shift toward Electric Vehicles (EVs), industry observers noted.

Last year, Taiwanese companies raced to fill a huge car chip shortage created by pandemic complications. Although the island nation is considered the semiconductor capital of the world, Taiwan struggled to make a large footprint within the supply chain for internal combustion engine vehicles. Last year’s chip shortage has forced global carmakers to hit the brakes on production. But the opportunity for Taiwan’s semiconductor-makers in the electric vehicle market is gaining speed. With carmakers increasingly transitioning toward EVs, automobiles now require more electronic components than ever.

One consumer trend is pushing the adoption of electric vehicles faster. Consumers worldwide are more inclined to support more sustainable, smarter vehicles. On the other hand, such a growing demand has been further strengthened by the pandemic which saw an increased need for private transport.

While Taiwan’s semiconductor firms have supplied global automakers, the majority of their products are into consumer electronics. Thus, the biggest of the country’s chip manufacturers supply semiconductors for some of the world’s most sought-after consumer electronic brands.

But car companies worldwide know how crucial Taiwan’s role is in the future. So, while chips for cars only account for a tiny fraction of the overall sales of Taiwan’s biggest contract chipmaker, its role in the car supply chain was important enough for officials from the U.S., Germany, and other countries to ask Taiwan to up the production of less advanced silicon used in automobiles.

There is a steady ongoing worldwide shift happening towards EVs which in turn, has started to create better opportunities for other contract semiconductor firms in Taiwan. A host of Taiwan’s established firms have been filling up orders for electronic chips for one of the world’s leading electric car manufacturer brands based in America.

Consumer electronics, by definition, refers to any electronic devices designed to be purchased and used by end-users or consumers for daily and non-commercial/professional purposes. A common example of such are smartphones, computers, TVs and tablets. Globally, this market has been valued at USD 729.11 billion in 2019 but has been growing steadily through the years.

On the other hand, the global automotive manufacturing market was sized at about 2.7 trillion U.S. dollars in 2021. Also, the electric car market is valued at USD 370.86 billion in 2021, and it is expected to reach USD 1298.32 billion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 23.35% over the forecast period (2022-2027).

The good news is local Taiwanese officials are eager to help companies gain a foothold within the EV supply chain as well. For example, the Tainan City Government is currently looking for suitable real estate within industrial parks to set up specialised zones for car electronics suppliers to construct offices and plants. Such government support is conducive. Greater cooperation between the public and private sectors is needed for Taiwan to move forward in its quest to cut a lion’s share in the EV market. But it’s not the first time that the government has worked with its business leaders.

While Taiwan is home to the world’s biggest chip manufacturer, various government efforts have been made to make the country a suitable source of chips for the planet’s biggest brands. A clear example is the Industry Technology Research Institute (ITRI), a non-profit research company funded by the government that has guided the country’s biggest semiconductor companies.

As reported on OpenGov Asia, ITRI has advised Taiwan’s chipmakers to look into robotics to make the most of another growing car manufacturing trend: Assisted Driver Systems (ADS).

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Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

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SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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