Page 16 - GenerationCar

supply EV parts and components to international car makers such as Tesla and
BMW's Mini-E, proof that Taiwanese parts suppliers have achieved international
acceptance. In addition, Taiwan also produces anode and cathode materials
for lithium-ion batteries. The anode material can be used for LFP, NMC, cobalt
sulfate, and nickel sulfate batteries. Future developments in next-generation
vehicle technology should see Taiwanese parts suppliers leverage their
exceptional R&D capability to continue supplying international car makers with
the necessary products to satisfy the demands of new technologies and fields.

Due to the recent impact of the COVID-19 epidemic, operations in many
automobile component and vehicle plants in Mainland China, Europe, and the
Americas have been suspended. The suspension illustrates the necessity of
the creation of a secure supply chain for the international automobile industry
and the dispersion of production bases will become an important trend. Taiwan
can be used as one of the regional supply centers for international automobile
manufacturers. Foreign companies can take advantage of the existing
infrastructure of Taiwan's automobile, component, and ICT industry, and they
can also disperse supply chain risks and create a regional production network
centered in Taiwan to ensure their backup production site or supplies of major
components.

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