Taiwan’s Development and Role in the Future of Electric Vehicles
Taiwan is well-known for its high-precision machining technology and complete ICT industry supply chains, along with its expertise in a number of key automobile technologies such as car chassis manufacturing, motor battery-electronic control integration, and charging management. This niche combination and solid foundation of industry development have helped Taiwan generate a complete industrial chain of electric vehicles (EVs), scooters, and buses. Many Taiwanese companies have entered the supply chain of major EV brands, and the Mobility in Harmony (MIH) alliance was launched as an EV platform to boost collaboration. In addition, with its high degree of urbanization and population density, Taiwan has applied the new “Mobility as a Service” (MaaS) model to smart mobility, such as electric scooters, smart parking, and e-tickets, to pave the way for superior infrastructure for developing EV-related industries.
The development of EVs in Taiwan follows the Connected-Autonomous-Shared & Services-Electric (CASE) principles, which is Mercedes-Benz’s core development strategy since 2016. To promote the growth of the smart EV industry, Taiwan has adopted five main strategies, including promoting cooperation between different government agencies for the use of electric buses, increasing incentives for automobile purchases, innovating business models, encouraging business investments, and establishing an industry value chain. Taiwan’s Air Pollution Control Action Plan has also set a target of electrifying all government vehicles and public buses by 2030.
Taiwan’s interdisciplinary cooperation and pilot trials for new energy vehicles make it an ideal demonstration facility for next-generation vehicles. The “Unmanned Vehicles Technology Innovative Experimentation Act” further facilitates product development and real-world testing. Additionally, the Asian Railway and Transportation Engineering Center (ARTC) in Taiwan boasts a comprehensive electromagnetic compatibility (EMC) laboratory certified by A2LA, offering EV companies internationally certified EMC test reports for their high-level automotive electronics and EV products.
(Source: Taiwan Ministry of Economic Development)
(Source: Startup Island TAIWAN Podcast)
Startup Island TAIWAN Podcast Interview
MIH Jack Cheng: From Automotive Supply Chain Management to Electric Vehicles
With more than 20 years of experience in the automotive industry, MIH Consortium’s current CEO, Jack Cheng, began his career at Ford Motor Company (Ford) in the 1980s. Since then, he had already foreseen the future of Taiwan’s automotive industry and actively sought out opportunities in the U.S. to export vehicles from Taiwan. He then moved to China as the Director of Purchasing, where he became known as the “Godfather of the Automotive Supply Chain”. In 2015, Cheng began to follow the electric vehicle trend and was invited to join NIO (a Chinese multinational automobile manufacturer) as a co-founder, and launched their first electric car in a short time.
Electric cars soon faced challenges, but Cheng quickly learned from his experience. Traditionally, it takes at least three to four years to release a vehicle due to the decision-making speed and strict rules. By standardizing the process and performing overlapping tests based on confidence levels, he found that he could reduce duplication and increase efficiency.
During the epidemic, the development and manufacturing of electric vehicles did not come to a halt. Since the start of electric vehicles, Cheng has had a globally distributed team of people in charge of design, software, engineering and manufacturing in different regions. The international division of labor has helped him develop a successful strategy for the MIH Consortium, allowing him to focus on developing and investing in electric vehicle technology and related industries. His extensive experience in the automotive industry, combined with his willingness to learn from experience, makes him a valuable asset to the MIH Consortium. He sees MIH as a half-completed wheel and battery pack, with the goal of inspiring new people to create the next generation of electric vehicles. By joining the platform, suppliers, and startups from different fields can use this as a bridge to discuss and collaborate.
(Source: Startup Island TAIWAN Podcast Interview:MIH Jack Cheng)
27 startups from Taiwan participated in Tokyo City Tech
Taiwan’s booming EV industry has attracted national awareness of the potential of the EV industry. Taiwanese government and related organizations are actively promoting international exposure in this area. These efforts not only help Taiwan’s EV companies expand their global market share, but also provide opportunities for exchange between investors, partners, and new and innovative industries. As Taiwan’s EV sector continues to become an important component of Taiwan’s new innovation ecosystem, it will bring new opportunities for Taiwan’s international development.
To support startups, the Tokyo Metropolitan Government held City-Tech Tokyo for the first time on March 27 and 28 this year, with the theme of establishing a new value system under the trend of a sustainable society. The National Development Council and the national startup brand Startup Island TAIWAN also led 27 Taiwanese startups to participate in the City-Tech Tokyo exhibition to support the theme of the exhibition, “City Technology”. In the field of EV, Taiwan’s EV services are covered with charging piles, electric meters, fiber optic gyroscopes, etc. As for these key technologies, investors could go between these companies and City-Tech Tokyo is an important channel to enter the Japanese market, which brightens the prospects for the international development of Taiwan’s startup ecosystem.
(Source: Asia Silicon Valley Development Agency)
Competitive Landscape and Forecast
Taiwan External Trade Development Council (TAITRA) recognizes the tremendous value and significance of the EV industry, as well as its potential impact on national security and power, stemming from the acquisition of vast amounts of big data within the ecosystem. In light of this understanding, TAITRA has embarked on a diversified and innovative approach to foster development. This approach includes the organization of “2035 E-Mobility Taiwan,” the first-ever B2B exhibition in Asia dedicated to EVs, and hosting of the prestigious startup competition known as “Global Demo Day.” Furthermore, TAITRA has undertaken a comprehensive review of the supply chain, resulting in the publication of an industry map that serves as a global promotional tool. Lastly, TAITRA has taken the initiative to establish the “Electric Vehicle CEO Academy,” which aims to facilitate international cooperation and assist Taiwanese companies in comprehending the mindset and standards of prominent car brands. Through these strategic endeavors, TAITRA is poised to reinforce Taiwan’s position in the global EV landscape while propelling the industry toward a prosperous future.
(Source: TAITRA)
Writer: Sarah Pan, Eddie Busabok
Editor: Molly Jou
Graph Design: Shirley Hsieh
