Delta Poised to Supply Electric-Car Parts to Major Chinese Automakers

Delta Electronics, a major supplier of switching power supplies and DC brushless fans, is poised to make a major stride in its aggressive inroads in the green-energy sector, as it has established contacts with China`s 10 leading automakers for the supply of components/parts and power systems for electric cars.

A Delta executive expressed optimism for the success of the prospective deals, which, if successful, will enable the company to tap China`s huge electric-car market, whose capacity is equivalent to 30% of the global total. The deals under talk include power systems for electric and gas/electric hybrid car.

Delta may also net OD (original design) business for entire electric power system from second-tier automakers, according to the executive, who predicted that auto electronics will contribute NT$10 billion annual revenue to the company in three to five years, 10% of the total amount.

After years of effort, Delta has established solid technology for producing electric-car components and parts, including magnetic components, heat dissipaters, and stepping motors, many of which have been supplied to the world`s renowned automakers.

The prospective Delta deals underscore the increasingly close link between the auto industries on the two sides of the Taiwan Strait. Seven Taiwan automakers and auto-parts supplies have recently established partnership with Chinese counterparts, thanks to the mediation of cross-Strait industrial bridging meeting, including Yulon with Dongfeng, Kortus with Chery, Yulon and Geely, San Yang and Kinglong, Simplo and Potevio, Delta and Beijing Automobile Works, and Pihsiang and Saic Motor.

An official of the Ministry of Economic Affairs (MOEA) noted that auto industries on the two sides of the Strait will step up mutual investments in the future, facilitating the entry of Taiwanese auto-parts suppliers into the supply chains of Chinese automakers.

In a recent cross-Strait industrial bridging meeting, Taiwan and China agreed to set up a “panel for cross-Taiwan Strait automobile industries,” aiming to promote close cross-Strait exchanges in the fields of auto electronics and new-energy vehicles, as well as cooperation in auto and auto-parts certification and testing.

(by Philip Liu)

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