Japanese carmakers and tier one suppliers are increasingly turning to Taiwan for components.
The country’s largest parts-maker, Tong Yang has inaugurated a newly upgraded, expanded coating line at its factory in northern Taiwan’s Guanyin, Taoyuan County. This produces OE parts, as well as renovating electro-plating lines at its Tainan factory in southern Taiwan, which are expected to start mass production by year-end or early 2013.
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Ta Yih, the largest OE auto-lamp supplier in Taiwan, said it has been winning ever more tooling orders from Japanese partner Koito Group, likely due to risk hedging in the wake of the massive quake and tsunami last March that severed parts supplies. Its factory in Tainan, southern Taiwan, has been in full-capacity production for some time.
Industry experts said that many Japanese caromakers and tier-one parts suppliers, as well as overseas plants, were impacted by natural disasters in 2011, including the mass earthquake and tsunami in Japan and floods in Thailand. They are looking to spread their sourcing while the strength of the yen greatly weakens the export competitiveness of Japan-made products.
Tong Yang said that the new coating lines at the Guanyin OE-parts factory have raised production efficiency by 50%, cutting time from 90 to 45 seconds. Ta Yih said that it has begun exporting toolings to Japan, Thailand, Indonesia and the USthrough Koito’s sales network in the second half.
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