1. Taiwan’s Electric Vehicle Supply Chain Sees Leapfrog Growth
Economic Daily News Reporters Chiu Hsin-yi and Compiler Lin Yi-jung / Comprehensive Report, January 30, 2023, 12:00 AM
The electric vehicle (EV) market is poised for “leapfrog growth” this year. Supply chain insiders indicate that, based on current order volumes, the global EV supply chain’s output value in 2023 is expected to more than double compared to last year, showing a steady quarter-on-quarter upward trend. Taiwanese companies such as Tong Yang, Hota, Yingli-KY, Wah Lee, and Taiwan Cement are aggressively seizing market opportunities and are among the first to benefit.
Market research firm TrendForce estimates that global new energy vehicle shipments will reach 14.5 million units in 2023. Tesla is optimistic, projecting a full-year production of 2 million vehicles—exceeding market expectations—and has identified mainland China as the fastest-growing EV market.
Additionally, brands like Volkswagen, Volvo, BYD, and Chinese domestic EV makers such as Xpeng, NIO, and WM Motor are rapidly expanding their market presence, with analysts predicting this will drive revenue growth for Taiwan’s automotive component supply chain.
Tong Yang Industry, a traditional component giant, has capitalized on lightweight products to secure substantial orders in this EV wave. It expects EV-related revenue to account for 30% of its total next year, up from about 10% currently, signaling a significant release of EV-related orders this year.
Hota notes that, with borders reopening, global clients are resuming in-person business visits, bringing new opportunities and prospects. Beyond existing client products, 2023 will see new customers and projects transition into mass production.
Yingli reports that EV-related performance rose to 22% of its business last year and is projected to exceed 30% this year. To meet the booming EV market, Yingli is increasing investments in the sector, launching a 780 million RMB fundraising plan.
As the EV market enters a rapid development phase, batteries have become a critical factor, with technology and materials serving as decisive elements. Competition for upstream resources is intensifying globally, with tensions rising over nickel mines in Indonesia.
The battle for nickel has escalated to a “national-level” conflict, with Australia and China vying for Indonesia’s reserves, while global EV giants like BYD, Tesla, and Hyundai are actively securing nickel supplies in the region.