EV could become Taiwan's next best chance: Pegatron

The fast-growing electric vehicle (EV) industry is likely to reach only 10% of market share by 2025, Pegatron Chairman Tung Tzu-hsien revealed but expressed optimism regarding Taiwan's potential for a more significant role in the sector.

Tung pointed out Taiwan had not successfully integrated into the traditional automotive sector but could leverage into the EV parts, modules, to complete vehicle platforms. He highlighted how Taiwan could play a crucial role in drawing up universal technological standards based on the current industry trajectory.

While EV operations contribute a smaller fraction compared to Pegatron's leading businesses, Tung said he expects the company's EV operations to continue on its upward traction, similar to the industry's prospects.

At a tech summit co-hosted by Pegatron and Monte Jode Science and Technology Association of Taiwan, Tung discussed the global trends of EV development and potential business opportunities.

Citing statistics from global corporations, Tung said the current market sees only sales of EVs in the millions. Compared to the overall auto market, the EV share is in its infancy, though it could still see growth to 10% by 2025 and 30% by 2030.

The industry value of automotive and peripherals in 2018 and 2019 reached USD$4 trillion, which is eight times more than the semiconductor industry, and seven times more than the smartphone sector. Many profitable companies have sprouted up in Taiwan in the past decades, having partaken crucial roles in the global automotive industry. However, in terms of participating in the entirety of the automotive supply chain, Tung said Taiwan is still very much behind countries like Europe and the U.S., due to their strong auto heritages.

Pegatron is currently a Tier 1 supplier in the EV supply chain. Tung warned that many Taiwanese firms lack the experience of directly servicing auto firms, which is an entirely different realm compared to auto parts supplying.