Young Liu, the chairman of Foxconn, is hoping that Taiwanese manufacturers will work together to help Taiwan’s electric vehicle (EV) supply chain into the markets of India, Indonesia, and Thailand.
EVs will be crucial to the future of the transportation sector since the EU plans to outlaw the sale of all fossil fuel-powered vehicles by 2035 and the world has set a goal of having zero carbon emissions by 2050. As a result, there is already widespread agreement in Taiwan that Taiwanese manufacturers must carve out a position for themselves in the global EV industry and turn into an indispensable component of the supply chain.
Even though the Ministry of Economic Affairs (MOEA) has already taken steps to develop Taiwan’s EV-related sectors, the sector still requires a strong, capable leading unit that can manage the small and medium-sized enterprises (SMEs) and guarantee that the sector advances as a whole.
Liu made a proposal to create a smart EV national project team through TEEMA and ask the firms to invest in India, Indonesia, and Thailand at a recent meeting of the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA). He believes that Taiwan’s EV supply chain can expand smoothly with the help of big businesses.
Taiwan’s enterprises require more than just technology and products to succeed in the global EV supply chain; they also need time. The industry’s development would be considerably more effective if TEEMA could come out and organize the existing status and development needs of the sector, or perhaps consolidate the sector first before systematizing the approach to pertinent policies.
Participants in the discussion also agreed that investing in India, Indonesia, and Thailand was a smart move given the growth of geopolitics and protectionism globally, the emergence of Southeast Asia as a market, and advantages including reduced prices and proximity to specialist markets.
That region has steadily seen the entry of several multinational corporations looking to invest and establish factories. The supply chain’s integrity is still a problem, though. Similar to SMEs, they have been wary of making investments in the area because of the high prices, hazy policies, absence of a corresponding unit, and other factors.
The association may help SMEs build up their factories by combining the upstream, midstream, and downstream members and utilizing the experiences of the big businesses. Together, the SMEs and the big businesses can build the local Taiwanese industry circle. The meeting’s attendees emphasized that Thailand, Indonesia, and India are all aggressively growing their EV sectors. Everyone will benefit if they can interact with Taiwanese companies and arrange investments through a major company like Foxconn.