Analysis of Automotive Electronics Industry and Taiwanese Company’s Competitiveness

Due to environmental pollution and traffic situation being worse and worse, the automotive electronics is drawing more and more attention. The auto electronic components can improve automotive performance, and make cars more fuel-efficient, more stable and safer. Because of the advance of semiconductor, Information and communication technology, the range of auto electronic application becomes much wider. As a result of the progress, auto electronic device will give automobiles more intelligence; it’ll not only improve the safety but make “mobile office” possible through Telematics technology. The automotive electronics market has a dramatically rapid growth which is fueled by automaker trying to differentiate their product with electronic content.
The industry’s potential also draws big interest in Taiwan; it provides a big opportunity of industrial transformation. Not only private companies, but Taiwan’s government has targeted the sector as the island’s fifth “trillion-dollar industry” which means it’ll bring in total annual revenue of more than 1 trillion NT dollars.
Specifically, the present study tries to answer the following questions,
1. What’re the industrial characteristics of automotive electronics?
2. What competitiveness do Taiwanese companies have? And what’s the development limitation?
3. What strategy should Taiwanese companies make to entry the industry?
By analyzing the industry, this study concludes that,
1. Taiwanese electronics industrial system is an important base to develop auto electronics industry.
2. Lacking the ability to integrate system, key technology and resource is the biggest limitation to Taiwanese companies.
3. Most of Taiwanese companies choose to enter the “After Market ” first.