Page 28 - TTG-Taiwan Transportation Equipment Guide (TTG)-2021-09 Edition

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Trends and Updates

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What’s In Store for Auto Industrieshat’s In Store for Auto Industries

Embracing new tech, resiliency, and reopening for trade shows

By Stephanie Chao

The global economy has been tentatively opening Companies could be looking towards sourcing
up amid increasing vaccination rates. However, as within their region instead of spreading production
of writing, several factors could stem attempts to across many countries for businesses to survive. This
resume the path towards pre-COVID economic levels. is especially seen in the chip shortage phenomenon
Among them are the previously-mentioned shortages that has hampered deliveries, sales and led to rising
of crucial semiconductors, raw materials, shipping prices in electronics and semiconductor applications,
containers, and labor. The other factor that comes notably auto chips, leading to a shortage of vehicles
hand-in-hand with shipping container shortages, is produced by auto giants. For over a year now,
whether the disruption in global supply chains would companies and governments worldwide are pushing
prompt localization and regionalization. for local production, with the U.S. Biden administration
calling it a national security risk.
Closer than Ever, but Farther Apart
Developing Resiliency
In many ways, the COVID-19 pandemic has made
the world closer than ever when the virus can easily With the Asian region seeing increasing COVID-19
spread from one end of the earth to the other thanks to cases, especially in Taiwan and South Korea, where
fast transportation, but for companies that have relied major chipmakers are based, such circumstances
on business trips, international trade shows to maintain could accelerate the localizing situation. Moreover,
and explore client relations, border restrictions and businesses realize that even if the COVID-19
healthy safety concerns have made it harder to do pandemic peters out, the lasting, cascading effects
business. caused by the supply chain disruption are here to stay,
and could worsen should future pandemics or global
Pre-pandemic saw companies choosing effi ciency climate change come into play.
over resilience. With a closely intertwined economy,
global supply chains have been streamlined to be fast, For instance, aside from COVID, a historic drought
efficient, and on time, at the expense of resiliency, nearly overwhelmed Taiwan’s chip-making capabilities.
leading to many of the shortages that industries and Moreover, extreme weather events, ranging from cold
the everyday consumer are seeing over a year since snaps to heatwaves, could cripple production as well.
the pandemic broke out.