Taiwan is densely populated and the road traffic is a complex mix of various forms of mobility. With a population accustomed to the use of ICT products in everyday life, Taiwan is also well-suited to become a demonstration site for the development of next-generation automobiles. In addition, the promulgation of the "Unmanned Vehicles Technology Innovative Experimentation Act" has created conditions that are even more conducive to the creation of autonomous vehicle test environments. This will make it easier for foreign firms to come to Taiwan to engage in product development and testing.

The US-China trade war is still heating up, and the US government is extremely sensitive about cybersecurity issues. Taiwan, which is strong in cybersecurity technologies and very experienced in defending against cyber attacks, is very suitable as a partner in the development of next-generation automobiles and testing sites.

A very wide swath of industry is involved in next-generation automobiles. For both electric vehicles and autonomous vehicles, there are new types of technology where breakthroughs are still needed. The ICT industry of Taiwan boasts world-class R&D capability and manufacturing expertise. Its many years of experiences in the automotive electronics industry have created a variety of applications for vehicle safety, mobility assistance, communications multimedia, and automotive IC. It can serve as a partner for international automobile manufacturers for the development of next-generation vehicles.

Auto makers in Taiwan are already capable of independent manufacturing of finished electric vehicles. And beyond that, Taiwan's auto makers have relatively flexible production lines and can provide comprehensive manufacturing services for special auto models that are produced in small batches. As such, they could be good partners for big-name international auto makers during the pilot production phase.

Taiwanese auto makers are high-level producers of auto components, and have strong technologies for the production of EV lithium batteries, drive motors, reduction gears, power storage systems, power control modules, power control systems, and telematics. In the future, as the technologies needed for new generation automobiles continue to be developed, Taiwanese makers of components will be able to rely on their superior R&D capabilities to continue providing products to big-name international auto makers.

Due to the impact of the pandemic, the dispersed distribution of production bases will become a predominant trend moving forward. In the future, Taiwan could serve as one of various regional supply centers for big-name international auto makers. Foreign firms can make good use of the existing foundation that's been laid by Taiwanese ICT firms and makers of auto components. They can also diversify their supply chain risks by setting up a Taiwan-centered regional production network that serves as a backup production base or supply source for important components.