Page 26 - TTG-Taiwan Transportation Equipment Guide (TTG)-2021-09 Edition

24
Industry News

Ho
How will the chip shortages affect the w will the chip shortages affect the
automobile industr
automobile industry?y?

Auto parts’ role in bridging the future and present

By Stephanie Chao

As much of the world experienced an seeing a squeeze in terms of shortages for raw
unprecedented disruption in 2020, industries alike materials, key parts, and shipping capacity.
struggled to readapt to the new reality. A walk Looking at the overall situation, it would look
around Taiwan's leading auto parts show — Taipei like two prominent factors are in a persistent state
AMPA — would see new emerging, hot technologies of tug-of-war and will set the tone for the next few
in the electric vehicle (EV) and autonomous vehicle years.
sectors a contrast against the traditional auto parts
suppliers. With each year, B2B sourcing platforms The New Guard and the Old
would increasingly hear and see more buyers
looking for EV-related parts. A scroll through the Despite the push for EVs and developing self-
news will prompt attention to tech giants, big-name driving cars, one would wonder where traditional
auto brands investing more and more into EV and auto parts would stand in the new order. For
autonomous driving technologies. sure, some past crucial auto parts (such as gas-
powered engines) would likely be pushed back
in terms of importance in the future. Others, like
On a less optimistic note, shortages continue to
persist. If industry watchers are correct, shortages auto headlights, could see technology upgrades as
could become routine as well, with the global suppliers move to incorporate traditional auto lamps
supply chain disrupted and fragile as a chain of into EVs and self-driving cars.
events snowballed into our current predicament.
Lead times are longer than ever; semiconductor In recent months, companies we've spoken to,
plants are churning out chips as fast as they can, such as a local fuel tank maker, had expressed
especially in Taiwan, where the locals must contend confidence in their business despite the surging
with a localized COVID-19 outbreak on Taiwanese demand for EVs and self-driving cars. Likewise,
soil in the year-long war waged against the virus industry experts had chimed in, saying it wouldn't
as of writing. This is amid a reopening economy be all "doom and gloom" for aftermarket auto parts
in other parts of the world, suggesting increased suppliers. Perhaps they should embrace their role
consumer demand for travel and entertainment, in an unprecedented crossroads between traditional
putting higher stress on the supply chain that is and new technology.