Page 27 - TTG-Taiwan Transportation Equipment Guide (TTG)-2021-09 Edition

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Industry News

The most realistic fact is that despite
governments worldwide are pursuing internal
combustion engine bans (or ICE bans), these
vehicles are still here to stay in the next decade.
Other factors like material and chip shortages,
public infrastructure, and urban designs still stand
in the way towards a fully electric-powered future.

Talks at Taipei AMPA, contrary to the excitement
of new technologies, also proposed very real
challenges to implementing a fully electric-powered
road. For instance, there are more and more
EVs on the road than a few years ago in Taiwan,
which has led to longer waiting times at charging
stations. The density of charging stations is also Photo courtesy of CENS
tied to Taiwan's high population density, which can
make finding enough land to build charging stations For society to see more alternative-powered
challenging, in turn leading suppliers to look at cars on the road and possibly help governments
including charging stations in public parking lots and reach carbon emission goals, the supply chain
residential buildings. Unfortunately, unlike electric must attempt to reorient itself amid shortage crises
scooters, electric cars require more power to charge across the board.
or fast charge. Most existing infrastructure today in
Taiwan cannot handle such a power load yet. According to local media, at the end of April,
market research institutions like Global Data had
Hybrid and traditional cars are viewed as a released statistics on surveying 100 semiconductor
stand-in while technologies and infrastructure industry experts: 47% believed the chip shortage
attempt to catch up and bridge the gap between would continue into the end of the year; 32%
supply and demand. Consumers will continue to believed it would continue into next year. However,
choose to refurbish and upgrade their vehicles with both Intel CEO Pat Gelsinger and TSMC CEO C.
AM parts, as general shortages will also mean price C. Wei have warned that the shortage could last for
hikes. two years.

Shortages: An Opportunity for Auto Parts Citing Flex Chief Procurement and Supply Chain
Officer Lynn Torrel’s remarks in the media, she had
When discussing the auto market nowadays,
chip shortages appear to be a consistent trend. warned that the semiconductor companies they
Due to auto firms pulling out chip orders during are working with have already pushed back their
last year's lockdown, it led to a snowballing effect delivery estimates to mid-2022 or the end of 2022.
where increased demand for chips in other products However, others have offered gloomier prospects,
has placed auto firms in a very hard place. With saying the shortages could last until 2023.
automobiles incredibly reliant on chips, even
more so for EVs and autonomous cars, newly- Torrel also warned that sudden closures, such
manufactured cars are in short supply, boosting as a chip supplier in a Malaysian city going into
prices in the used vehicle market as well. lockdown, could snowball the impact and prolong
the shortage crisis. What could be a possible
scenario that would ease the chip shortages?
As auto brands gradually phase out traditional
fuel-powered vehicles, AM auto part makers Suppose the vaccinated population directed their
have a crucial role to play. It is unlikely to expect consuming behavior to the service industry, or
the consumer masses to quickly adopt new with lesser demand due to a recovering economy
technologies; while ICE bans are locked in, for consumer electronics. In that case, the chip
traditional cars are still here to stay as AM auto shortage could ease up, and a reopened society
parts will be able to keep these cars on the road. would spur travel and consumption, leading back to
more auto sales.