cens logo

Taiwanese Auto Parts Suppliers Actively Develop Innovative Products and Expand Capacity in Response to Rise of Autonomous Vehicles

Mar 28, 2018 | By Alan Lu

Thanks to the rise of autonomous vehicles, many Taiwanese auto parts suppliers have witnessed a flood of contract orders recently. To keep riding the wave and further build up their reputations in the global market, some of them have been expanding their capacity while developing new products to meet customers' requirements.

Among them, Hota Industrial Mfg. Co., Ltd., one of the largest precision auto transmission component makers by size, has been actively setting up new production lines at its factories for the time being, to an effort to fill considerable orders from EV (electric vehicle) manufacturers for its reduction gearboxes.

As ever more auto companies have put heavier emphasis on the development of their EV models, it is stating the obvious that global market demands for EV parts will continue to surge in the years to come. In an anticipation of such strong demands to loom soon, Hota has got an early start on capacity expansion through establishing several intelligent production lines at its manufacturing bases.

The newly established fifth, sixth and seventh production lines in the Hota's first plant located in Dapumei Intelligent Industrial Park in Chiayi County, Southern Taiwan, have been running in full swing since passing certification by the company's customers.

At present, all the production equipment in Hota's first factory in the Dapumei are kept humming around the clock to fill customers' orders within the shortest time possible.

In light of lingering labor shortages in Taiwan, Hota has invested considerably in the development of AI (artificial intelligence)-controlled production lines to reduce its dependence on manpower. In the meantime, the company also looks to recruit more AI engineers.

Apart from setting up smart production lines, Hota in a response to great growth potential of its new products and continuously growing demands from customers is assessing the possibility to set up manufacturing plants overseas, so as to shorten delivery time and cut inventory costs.

On another front, in a belief that radars will become core parts of self-driving vehicles, Cub Elecparts Inc., a professional electrical and electronic parts manufacturer, has been engaging on R&D of auto radars, in hopes of gaining ground against its competitors in the market segment.

With driving safety gradually a concern among consumers, auto radars are increasingly applied in big-sized cars like recreational vehicles (RVs) and school buses. As most insiders opine that it's just a matter of time for such components to be widely applied in more vehicles, Cub has actively collaborated with a Chinese company to develop related products, in a bid to firmly seize the tremendous business opportunity.

To address labor shortages and handle steadily increasing orders, Cub is now establishing new production lines of auto radars in its manufacturing bases across the Taiwan Strait. Justifying the output expansion plan, the company emphasizes that sales of its auto radar products will continue to grow to contribute 20 percent to total revenue this year, to serve as a new growth engine for the company's business performance in the short term.

Also notable is that, Cub is also working with DEPO, a leading company that manufactures auto lamp, to develop a new product that combines an auto radar and auto lamp, to further enhance driving safety.

Worth mentioning is that, as a well-known auto lamp supplier in the world, DEPO also suffers from labor shortages in Taiwan.

After pouring NT$150 million into building a factory in Changhua Coastal Industrial Park, the firm, however, has trouble hiring sufficient workers for the new factory presently, and therefore is forced to adjust production schedules frequently.

As its Plan B to solve the problem, DEPO has considered setting up factories in Thailand, where the new-car market is fast-growing while workers are paid less than those in Taiwan.

In a view of the great demographic dividend of the country, DEPO thinks Thailand will not only serve as a good jumping board for the firm to better tap the Southeast Asian market, but also a suitable place to set up production.

Yu Shan-chuan, chairman of Cub Elecparts Inc. (photo provided by EDN.com)Yu Shan-chuan, chairman of Cub Elecparts Inc. (photo provided by EDN.com)


Industry Reports

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


(File cabinets, photo courtesy of Chyn Fuh Enterprise Co., Ltd.)

Taiwan's Furniture Industry Amid the COVID-19 Pandemic

Oct 16, 2020

The COVID-19 pandemic has deeply affected global and Taiwan's political and economic landscapes. Unlike some industries, the furniture sector did not escape unscathed, facing a squeeze from management and costs. While Taiwan continues to implement a stable, successful outbreak response, the industry has also misjudged the economic downturn duration. The furniture industry has yet to fully recover...


2020 Energy Vision Summit for Green Energy to Kick off in Nov.</h2>

2020 Energy Vision Summit for Green Energy to Kick off in Nov.

Oct 14, 2020

The Taiwanese government has pledged to lead the effort in further developing the sustainable green economy, which is among the sectors highlighted in the Tsai administration's "5+2 Innovative Industries Initiative." Economic Daily News is hosting the "2020 Energy Vision Summit - Green Energy 2.0" on November 11. As one of the government's core policies, improving the island's energy self-suff...



Industry In-Focus

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


China's Strong Auto Market to Buoy Taiwan's Related Industries</h2>

China's Strong Auto Market to Buoy Taiwan's Related Industries

Oct 19, 2020

Taiwan's auto parts market has seen positive impacts as the Chinese automotive market continues to grow in its sixth consecutive month. Hotai Motors and Yulon Nissan Motor are the two significant firms enjoying the leverage. The island's related industries are benefiting from the strong performance of China's automotive market. Industry members say as long as competitive Taiwanese firms mainta...


Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions</h2>

Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions

Oct 19, 2020

Industry experts expect to see challenging times ahead for production in the foundry sector, forecasting that the current situation will not let up in the short-term and warns of unbalanced supply-demand next year. During the pre-pandemic era, IC design firms say clients usually made urgent orders to avoid having to manage inventory. Yet, considering limited foundry production volume, clients ...



Supplier News

(Electric Vehicle-Photo courtesy of CENS)

Microtest: Precise, Reliable, and Always Improving

Oct 16, 2020

Eyes Stake in 5G Industry with Impedance Analyzer 6632 With greater demand for electronics and manufacturers' need for more precise and diverse applications than before, testing equipment that ensures the reliability, safety, and quality of parts are in hot demand. Founded in 1993, Microtest Corp. is a professional maker and developer of high precision and automatic testing and measurement ins...


(Photo courtesy of Ho Shuan Enterprise Co., Ltd.)

Ho Shuan is Your Choice for Educational Furniture and More

Oct 16, 2020

Insisting that its customers are always a top priority, Ho Shuan Enterprise Co., Ltd.'s R&D team provides the best educational furniture and peripherals, computer tables, and desks to meet all customer requirements. Established in 1986, Ho Shuan has experienced recent sluggish local market performance, but eventually rebounded and came back better than ever. Despite difficulties, the firm neve...

HO SHUAN ENTERPRISE CO., LTD.


(S16-M01 Short Swivel-Handle Cabinet, photo courtesy of Chyn Fuh Enterprise)

Chyn Fuh: A Quality OA Metal Furniture Maker

Oct 16, 2020

Chyn Fuh Enterprise, founded in 1993, entered the market with the sole aim of offering other OA metal furniture options for customers. Since its inception, Chyn Fuh has focused on designing and producing OA metal furniture, providing various office use products, including file cabinets, storage cabinets, office desks, and different assistive metal products. Chyn Fuh partook in many government ...

CHYN FUH ENTERPRISE 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

Gearing up for Post-COVID Recovery, THS Coming Soon in October</h2>

Gearing up for Post-COVID Recovery, THS Coming Soon in October

Oct 07, 2020

As the only hardware and hand tools trade show taking place this year globally, the three-day Taiwan Hardware Show (THS) will soon kick off on 13th October at the Taichung International Exhibition Center. Positive industry outlook for the post COVID-19 era has led to over 370 companies signing up as exhibitors, in a bid to gear up for a long-awaited economic recovery and plan the next strategic m...


Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...