Supply chain
Taiwan ICT makers stand chance of entering car supply chains
Yihan Li, Changhua; Adam Hwang, DIGITIMES

With automakers having little time to undergo digital transformation jointly with their supply chain partners amid quick and revolutionary changes in the industry, Taiwan-based ICT makers stand a good chance of getting a bigger presence in the car supply chains thanks to their strong capability in electronics, according to Liv Huang, assistant vice president for Automotive Environment, Energy, Electronics and Engineering Division under government-sponsored Automotive Research & Testing Center (ARTC).

But ICT makers must understand the significant differences between consumer and automotive electronics in terms of product life cycle and reliability, Huang said.

Drastic temperature changes in various scenarios make it a challenge for electronic components suppliers whose products have to stably function under unstable power supply and large mechanical impacts, Huang noted.

For product life cycle, carmakers may offer after-sale warranty for as long as 10 years, much longer than that for consumer electronics, and their partnering OEMs face long-term tests for maintaining high enough yield rates and steady production capacities, Huang indicated.

Unlike consumer electronics which can be rebooted after functional failure, running cars stand no chance of being restarted, Huang said. Due to high standards for reliability, automakers spend much time and cost in examining OEM qualification and makers, and chosen OEMs will not easily be replaced, Huang noted.

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