cens logo

Promising Growth of Telematics Brings Bountiful Outlook for Taiwanese Electronic Firms

Mar 13, 2015 | By Quincy Liang

The Mobile World Congress (MWC), held March 2-5 in Barcelona, Spain, underscored a new focus--telematics--in addition to different cellphone vendors' new top-end models and telecom technologies.

Gartner forecasts that in 2015, the automotive segment will see the highest growth of 96 percent, among others in Internet of Things (IoT) applications. (photo from Internet)Gartner forecasts that in 2015, the automotive segment will see the highest growth of 96 percent, among others in Internet of Things (IoT) applications. (photo from Internet)

Telematics has emerged as one of the most important development trend in global automobile industry. Gartner, Inc., an information technology research and advisory company based in the U.K., had already indicated that in 2015, the automotive segment will see the highest growth, of 96 percent, among others in Internet of Things (IoT) applications. Another market research firm, Transparency Market Research, also pointed out that by 2019, the annual production value of connected cars will reach US$131.9 billion, representing a compound annual growth rate (CAGR) of 34.7 percent between 2013 and 2019.

In fact, industry experts say, the telematics became a obvious new focus since the 2013 MWC, and an increasing number of international automakers participated in MWC events since then to showcase their latest technology and equipment development, including Mercedes-Benz, BMW, Audi, Ford.

According to Gartner, by 2020, there will be a quarter billion connected vehicles on the road, enabling new in-vehicle services and automated driving capabilities. During the next five years, the proportion of new vehicles equipped with this capability will increase dramatically, making connected cars a major element of the IoT. Gartner forecasts that 4.9 billion connected things will be in use in 2015, up 30 percent from 2014, and will reach 25 billion by 2020.

Ample Taiwanese Players
The booming telematics, or connected car, market has drawn plentiful Taiwanese companies to jump on the bandwagon. Companies that have already achieved initial success include Taiwan Semiconductor Manufacturing Corp. (TSMC), MediaTek Inc., Hon Hai Precision Ind. Co. Ltd., Chunghwa Telecom Co., Ltd. (CHT), SerComm Corp., Holtek Semiconductor Inc., Wistron NeWeb Corporation, HTC Corp., Asustek Computer Inc. (Asus), Micro-Star International Co. (MSi) etc.

Driven by rapid development of the telematics market, vehicles are equipped with more and more electronic equipment to create huge demand for suppliers. (photo from Internet)Driven by rapid development of the telematics market, vehicles are equipped with more and more electronic equipment to create huge demand for suppliers. (photo from Internet)

Hon Hai
Hon Hai, reportedly the largest private manufacturer in Taiwan and major international EMS (electronics manufacturing services) provider, has been aggressively developing automotive and electric vehicle (EV) related businesses, as well as key automotive electronic systems and parts, in recent years. The Taiwan-headquartered conglomerate reportedly injected additional investment of 5 billion renminbi (RMB) into one of its Chinese production bases in Shanxi Province of China, where workers have reached some 100,000. Industry insiders said that Hon Hai's new investment in Shanxi is part of the group's plan to produce more affordable EVs.

TSMC
As the fastest-growing segment, telematics semiconductor sales is also playing a vital role to raise the revenue of TSMC, recognized as the largest IC foundry in Taiwan. Industry sources said that TSMC's lead in advanced production processes are unlikely to be surpassed by most  rivals. For example, the sources added, TSMC's capital spending in 2015 is expected to outstrip US$10 billion, 80 percent of which will be utilized to install 16-nanometer production capacity and purchase 10-nanometer production equipment.

Morris Chang, TSMC chairman, specifically mentioned the development of major technologies in 2014, including system-in-package (SiP), micro electromechanical systems (MEMS), image sensor integration and ultra-low power consumption, which are all essential in developing business in the booming IoT and telematics markets.

In addition to acquisition of Qualcomm's plant in Longtang, northern Taiwan, to prepare advanced packaging capability, TSMC has also outsourced to a subsidiary multi-chip and image-sensor integrated packaging, as well as allying with power-management chip companies to develop ultra-low power consumption micro controller units (MCUs) and power management chips to pave the way in IoT- and telematics-related business development.

CHT
As reportedly the largest telecom carrier in Taiwan, CHT has already ventured into the telematics business by cooperating with local partner Hotai Motor Co. Ltd., Taiwan's agent of Toyota and Lexus, which has launched the Toyota Intelligent Driving system for both pre- and aftermarket in a wide range of telematics functions.

In recent years, CHT has also extended its smart Internet connection applications from personal, home and enterprise to telematics. By integrating Intelligent transportation systems (ITS) and IoT technologies, the firm launched the smart logistic driving imaging service, a comprehensive fleet-management solution integrated with functions and services as driving-image cloud-end storage, GPS location, 3G mobile telecom, vehicle diagnosis, real-time tele-imaging, real-time thermo- monitoring (for refrigerated commercial vehicles) etc.

Networking & Communication
Networking and communication equipment makers are also eyeing the lucrative telematics application market, as 4G high-speed data transmission enables rapid audio-video downloading; while the 2GHz high-frequency technology is applicable to auto anti-collision radar, a new niche for players.

James Wang, CEO and president of SerComm Corp. pointed out that from 2020 to 2025, total  global production volume of networking/communication equipment will reach 100 billion units, in which automotive smart gateways and sensors will be a major product category, in addition to smart terminals, home Internet equipment etc. SerComm has been aggressively developing telematics related products, which were one of the firm's major exhibits in 2015 MWC.

Wistron NeWeb Corporation, another networking and communication equipment supplier, has been diversifying product lines into non-core fields as  satellite communications. New product categories include smart home, automotive electronics, IoT, vehicle Bluetooth module, vehicle communication module, anti-collision radar etc. Automotive  products now account for about 20 percent of the company's overall revenue.

Holtek has been aggressively developing telematics-related businesses, including automotive Bluetooth, 802.11 wireless transmission etc. The firm's revenue from MCU peripheral devices is expected to remain stable this year; while it is scheduled to continue launching more new application products as smoke sensor, Smart meters etc. The company is also targeting vehicular reverse imaging system and home security system.

ICT Companies
Major information and communication technology (ICT) makers are also targeting telematics related business, such as HTC (recognized as Taiwan's largest smartphone maker), Asus (a leading PC vendor), MSi (major PC and motherboard maker) etc.

HTC set up its automotive business division three years ago and kicked off partnerships with international automakers such as Yulon (Taiwan), Volkswagen, BMW etc. Industry sources say that smartphone makers can help automakers develop in-car infotainment systems with inter-connected and -control features, with such cooperation model packing immense potential for the future.

Asus has been developing the automotive market for many years after setting up a fully-owned subsidiary, UniMax Electronics Inc., which focuses on self-development of automotive electronic systems to supply to international vehicle makers on original equipment (OE) basis. Many of UniMax's products are certified by Japanese automakers.

Automotive products made by UniMax. (photo from company website)Automotive products made by UniMax. (photo from company website)

UniMax focuses on development of car computers with multimedia, navigation, Internet-connection, voice-control etc. functions; while the firm tied up with auto vendor Hotai to develop the Intelligent Driving System. In addition, the firm's digital video recorder (DVR) products have entered the European market, while its smart type, cloud-based navigation system have been installed in Taiwan-assembled Toyotas.

MSi has successfully tapped into the telematics market to have achieved impressive success. The firm has won orders from Japanese home delivery companies, while in emerging markets such as Argentina and Brazil it has become a major telematics equipment supplier. In 2009, MSi set up Funtorro Inc. to focus on development, production and global marketing of vehicle infotainment products. Few years later, its  Funtoro own-brand has gained solid foothold in the international market and won big-ticket orders from customers in the U.S., Japan and Europe. This year, industry sources say, MSi's automotive products are expected to enjoy continued and rapid sales increase.


Industry In-Focus

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


This is the exterior of LC Fuel Tank's new plant which are being constructed in Xiluo Township. (photo courtesy of LC Fuel Tank)

Inevitable Rise of EV Spurs Fuel Tank Maker into Classic Car Industries

LC Fuel Tank Targets EU's Classic Car Market

Sep 05, 2019

As a top professional fuel systems manufacturer in Taiwan, and a global player in the automotive aftermarket industry, the fact that car makers are investing more resources into the electric vehicle (EV) than conventional vehicles powered by engine around the world is a challenging situation that LC Fuel Tank Manufacture Co needs to deal with. There’s no fuel tank in EV, only batteries. Each y...

LC FUEL TANK MANUFACTURE CO.


Taiwan's First Hand Tools Research and Testing Center Opens in Taichung on May 31(photo taken by Sung Chien-sheng)

Taiwan's First Hand Tools Research and Testing Center Opens in Taichung

Jul 23, 2019

In response to upgrading Taiwan’s hand tools industry and localizing services to the industry chains, China Steel Corporation (CSC), Taiwan Hand Tool Manufacturers' Association (THTMA) , Metal Industries R&D Center (MIRDC), and Corporate Synergy Development Center (CSD) have jointly established the research and testing center for hand tools in Taichung Industrial Park at the opening ceremony on M...



Industry Reports

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


The US president Donald Trump
(photo courtesy of Agence France-Presse)

S. Korea most affected by U.S.-China trade spat: report

Dec 10, 2019

South Korea may have been hit the hardest among major economies by the protracted trade dispute between the United States and China due to its high dependence on exports to the countries, a report said Tuesday.The U.S. and China are the world's largest importers of South Korean products with shipments to China accounting for more than one-quarter of South Korea's overall exports last year, accord...


Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina </h2>

Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina

Dec 05, 2019

Donald Trump will reimpose tariffs on imports of steel and aluminium from Brazil and Argentina after accusing the countries of a “massive devaluation” of their currencies that hurt US farmers. The move — which was announced by Mr Trump on Twitter on Monday — sharply escalates trade tensions with the two struggling Latin American economies as they build closer ties with China.The announcement ...



Supplier News

Vacuum Carbon Fiber Aero kits-super is extremely light with high hardness and high quality。

TWL-CARBON Specializes in Carbon Fiber Components of High-End Sport Cars

Nov 29, 2019

■Lo Su-hua Founded in 2001, TWL started its career as auto parts and aftermarket accessories trading company while entering the field of OEM of carbon fiber auto parts in 2012. However, with many years of manufacturing experience, TWL found a problem that has existed so long in the carbon fiber auto parts industry–the prices in the carbon fiber auto parts’ material are hugely different and...

Twlcarbon CO. LTD.


Pneumatic tools Airboss invented attracted buyers attention in exhibitions (photo courtesy Airboss)

Airboss air tools co., ltd., the shortest pneumatic tools attracted attention

Nov 19, 2019

■Lo Su-hua Concentrated on R&D, after-service and production, the Taiwan-based Airboss Air Tool Co., Ltd., a world-caliber supplier of pneumatic tools, which specialized in manufacturing compacted, light-weight, user-friendly pneumatic tools, high safety. The products are made with magnesium alloy and many specialties as lightweight, high precision, high rigidity. They are not only eco-fri...

AIRBOSS AIR TOOL CO., LTD.


Hsin Yi Chang Industry Co., Ltd showcases their quality vehicle visors, which are designated products by global big names. (photo courtesy of Hsin Yi Chang)

Global Vehicle Visor Player Hsin Yi Chang Seeks to Woo New Clients

Nov 19, 2019

■Tseng Lung-nan Equipped with a top-down supply chain, Hsin Yi Chang Industry Co., Ltd. is a company that has over 38 years of experience in vehicle visors and various precise acrylic molding. The firm markets its brand under “HIC” in Taiwan and many countries worldwide. HIC has been rolling out new vehicle visors, compatible with over 2,000 car models and types. Hsin Yi Chang General Manag...

HSIN YI CHANG INDUSTRY CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition </h2>

Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition

Dec 02, 2019

As industry players approach the end of the year, Automechanika Shanghai 2019 participants look ahead at the latest products, services and technologies of the future. The show opens tomorrow until 6 December at the National Exhibition and Convention Center, (Shanghai). Being recognised as one of the most influential automotive trade fairs in the industry, it continues to act as a central hub for ...


59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products</h2>

59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products

Nov 12, 2019

Organised by the Hong Kong Trade Development Council (HKTDC), the 21st Hong Kong International Lighting Fair (Autumn Edition), the fourth Hong Kong International Outdoor and Tech Light Expo and the 14th Eco Expo Asia concluded with more than 59,000 buyers from 135 countries and regions visiting the three fairs. HKTDC Deputy Executive Director Benjamin Chau said: “Despite the recent public inc...