Taiwan's Production Expected to Triple in Value Between 2010 and 2015 on Growing Demand from Key Asian Economies

FOR IMMEDIATE RELEASE. TAIPEI, TAIWAN, July 31, 2009 - The Taiwan government aims to attract investment in the domestic automotive electronics industry in order to tap a global market worth US$211.7 billion last year that's expected to grow in response to demand from China and other key Asian economies.

According to the Ministry of Economic Affairs (MOEA), Taiwan's production of auto electronics will be worth NT$100 billion (US$3.1 billion) in 2010 and increase to NT$300 billion by 2015. The main products will include telematics systems, automobile lights, light-emitting diode (LED) headlights, reverse parking systems and tire pressure monitoring systems (TPMS). Taiwanese companies also have huge potential in airbags, car alert systems, keyless entry, engine lock chips, navigation systems and infotainment systems.

Taiwan has more than 2,000 companies in the automobile industry employing about 85,000 people. While about 90 percent of these companies have fewer than 100 employees, their annual per capita contibution to sales - at about NT$4.8 million (US$145,339) in 2007 - has grown rapidly in recent years.

Taiwan aims to expand its supply of auto electronics to major car manufacturers around the world. To aid in this expansion, the Taiwan government has identified segments of the industry that need investment. Thanks to the shared language and culture of Taiwan and China, the two sides have built strong ties in the automobile industry, and demand in China is expected to grow rapidly.

There are already some early examples of success. Swedish automotive safety leader Autoliv Inc. has established a subsidiary in Taiwan to develop tire pressure sensor systems and radar that is used when a car is reversing. Taiwan's strength in semiconductors and information technology have helped to create huge business potential for domestic manufacturers especially in the reverse radar segment.

Taiwanese companies have worked with Japan's Mitsui to develop technology for alarm systems, keyless door switches and remote controlled lock systems, becoming top tier suppliers to original automobile manufacturers.

The MOEA is launching a "Project to Establish Indigenous Technology for the Automobile Industry", which will continuously support automobile information service projects in fields such as safety, information and navigation. The MOEA is also assisting with a plan to develop radio-frequency ID (RFID) service modules for the automobile industry and has started a demonstration project for a service value chain in international auto production.

The Taiwan government plans to offer a number of other attractive incentives to investors in the domestic auto electronics industry.

Moreover, Taiwan has established a number of world-class research institutions in areas such as electronics and material sciences.

Just this year, Taiwan opened the Automotive Optic Design Center (AODC) to help vertically integrate the island's automotive-lighting industry and capture more of a global market worth tens of billions of U.S. dollars annually.

As Taiwan is gaining market share and international recognition in the automotive lighting industry, the Automotive Research & Testing Center (ARTC) under the MOEA established the AODC to help the industry develop more advanced lights that are internationally competitive.

2009 Taiwan Business Alliance Conference

The 2009 Taiwan Business Alliance Conference, organized by the Ministry of Economic Affairs (MOEA) and co-organized by the Taiwan External Trade Development Council (TAITRA), will bring together government officials, industry professionals and venture capitalists to build partnerships and expand business on the island.

This sixth annual Conference scheduled for 7 October 2009 at Room 101 of the Taipei International Convention Center (TICC) will present some unique opportunities that businesses and trade promotion officials cannot afford to miss. The event is open exclusively to multinational executives, venture capitalists and industry representatives. Online registration will be available at http://investintaiwan.nat.gov.tw/en.

During the panel discussion in the afternoon on October 7, a group on auto electronics will speak on the following subjects:

- Increasing the Global Market's Awareness of Taiwan's Auto electronics Industry and Its Investment Environment

- Facilitating the Development of Taiwan's Auto electronics Industry to Boost Taiwan's International Competitiveness

For these two topics, Industrial Development Bureau Director General Dr. Tyzz-jiun Duh will serve as the moderator, and a number of domestic and overseas experts will be invited to speak. You are cordially welcomed to register for this event.

Areas in auto electronics where Taiwanese companies show the most potential.

To register, contact the overseas branch offices of the MOEA or TAITRA by using the links provided below:

Overseas branch offices of MOEA

http://eweb.trade.gov.tw/kmi.asp?xdurl=kmif.asp&cat=CAT491

Overseas branch offices of TAITRA

http://www.taiwantrade.com.tw/CH/resources/MAIN/TC/S2/overseas/overseas_offices_tc.jsp

Register now !

Don't miss this unique opportunity. The event is open to multinational executives, venture capitalists and industrial representatives.

To register, please contact:

Taiwan Trade Center, San Francisco/TAITRA

5201 Great America Parkway, Suite 306

Santa Clara, CA 95054

Tel: 408-988-5018 ext.203, Fax: 408-988-5029

Email: office@taiwantradesf.org

Web site: http://sf.taiwantrade.com.tw