Taiwanese EV parts suppliers eye critical parts amid accelerating industry pace

With the electric vehicle (EV) trend sweeping across the globe, Taiwanese suppliers are focusing on certain key components as potential business opportunities, including Hon Hai, Hota Precision, Tong Yang Industrial, TECO Electric & Machinery, Hiwin, ASE Technology Holding, and passive component suppliers.

Many suppliers in the industry are leveraging the current climate as a result, with Hon Hai as the most proactive and aggressive out of the named companies.

Hon Hai Chairman Young Liu pointed out that as of March 29, their MIH Alliance initiative now bosted 1,348 membership companies from around the world, ranging from hardware to software, across 47 countries and regions. Hardware suppliers made up 86.9% of the membership, while software made up 9.9% on average.

Liu said he believes the global EV sector's heyday to arrive earlier than expected in 2023. Through the MIH Alliance platform, Hon Hai now holds technology for four critical fields -- EV batteries, motors, electronic control units, and software. The conglomerate is reported to be in talks with electronic control units and chip suppliers and makers. In the next two months, Liu reported that the company would announce a partnership with EV battery suppliers, and for next year, potential opportunities with clients doing e-buses and Model-C EVs.

Hon Hai subsidiary Foxconn Industrial Internet is also actively expanding its EV reach. CEO Brand Cheng said the company's goal is to integrate high-end precision parts, manufacturing essential lighthouse parts, and leverage those experiences into Vehicles for IoT and 5G.

HOTA Chairman Shen Kuo-jung pointed out that Taiwanese suppliers have a huge opportunity in motors, electronic control units, reduction drives, and differentials. However, he believes there is room to improve in terms of testing, data collection, and differential testing.

Tong Yang Industrial is focusing on developing lighter EVs and products, targeting auto suppliers in Taiwan and China. Markets say the company is already developing toolings for MIH's two EV models. They also say Tong Yang is on schedule to mass-produce lightweight parts for Chinese EVs this Q3.