Bcom’s MS103 is a car control unit that offers both touchscreen and handwriting input interfaces. It supports GPS function.

Growing supply and exports in Taiwan mirror global market; expanded applications emphasized in new releases

The worldwide telematics market is poised for continuous growth, with total production to hit 11.7 million sets by 2011, according to the Telematics Research Group. Reflecting the robust global industry, Taiwan has about 50 suppliers of telematics-related products, including automatic vehicle location (AVL), portable navigation devices (PNDs) and telematics-embedded products. About 20 members of the supplier base are focusing on producing telematic devices with navigation functions. These makers are export-oriented, shipping their products to Europe, the US and Asia. To expand overseas shipments, some makers target the emerging markets, including Africa, the Middle East and other parts of Europe.

Taiwan’s key industry telematics players work with hardware and e-map suppliers, as well as call center operators to provide total solution services. The major telematic hardware suppliers include Bcom Electronics Inc., E-Lead Electronics Co. Ltd, Universal Scientific Industrial Co. Ltd (USI), Sine Technology, Hamg Shing Technology Co. Ltd and E-Wintek Co. Ltd. The key e-map providers are SuperGeo Technologies Inc., Cybergraphy Technology Inc., Systems & Technology Corp. (S&T) and GeoInfo Scientek Consultant Inc. The call center operators include AAT, Chunghwa Telecom (CHT), Taiwan Mobile Co. Ltd, Far EasTone Telecommunications Co. Ltd (FET), APBW Asia-Pacific Broadband Wireless Communications Inc. and Lioho Technology Inc.

Telematic product makers leverage Taiwan’s strong vertical manufacturing industry, tapping the growing GPS line and supply chain for raw material and components. Taiwan’s GPS supplier base includes makers of GPS modules, GPS receivers, car trackers, AVLs, GPS navigators and PNDs. Some companies have acquired licenses for Microsoft, Google and VSRI maps. Others have in-house capability to design points of interest (POIs) and value-added, such as geographic information system (GIS).

Most telematics suppliers that mainly offer car trackers cooperate with systems integration companies that handle installation of car GPS for car company clients. Only large companies, such as E-Lead, have direct partnerships with car companies.

To grab a significant share of the market, suppliers are strengthening their R&D capability and focusing on developing high-tech, multifunction telematic devices. Some companies have formed partnerships in developing location-based service (LBS) navigators. LBS is a new application and is currently gaining popularity in Taiwan.

Telematics with assisted-GPS technology (A-GPS) is also gaining ground. Some makers are releasing models that include dead reckoning (DR). GPS and Galileo dual-mode GPS devices are expected to be the next trend for telematics.

More than 50 percent of Taiwan telematic system suppliers subcontract SMT and mold making processes. The majority of makers focus on R&D and QC. Some large companies have factories that handle all the assembly in-house.

Yield Technology Co. Ltd’s (YTC) subcontracting factory in Taoyuan, Taiwan is in charge of mold making, SMT and final assembly. The factory can produce 18,000 GPS products per month. YTC plans to increase its GPS output by more than 50 percent in the next 12 months by increasing its subcontracting orders. The company recently upgraded its management systems.

YTC was established in 1994 and started producing GPS-related products in 2000. YTC’s major product lines are GPS/GSM handheld trackers, GPS/GSM and AVL systems, and GIS. It exports 100 percent of its products to Europe, the US, Asia and the Middle East.

Most of E-Lead’s GPS devices are produced in the Jiangsu factory in mainland China. E-Lead has flexible production capacity. The company can expand its in-house capacity or work with subcontractors when necessary. It conducts all procedures in-house. It sources PCB boards from Taiwan suppliers. E-Lead adopts Toyota’s production management system and conducts the vibration, temperature, static electricity, aging and delay lab tests.

E-Lead has produced original equipped (OE) GPS devices since 2000. It started producing portable GPS devices in 2005. The company has factories in Changhua, Taiwan; Wujiang City, Jiangsu province; Changchun City, Jilin province; and Nanchang, Jiangxi province. It also maintains production facilities in Thailand.

Established in 1983, E-Lead’s headquarters is in Changhua, Taiwan. The company focuses on the R&D and manufacture of navigation systems and car multimedia, communications and electronic products.

Bcom has been engaged in automobile industry for six years. The company offers in-car entertainment systems, car PCs and telematic products. It emphasizes R&D capability and QC: An average testing procedure for a Bcom new product usually takes more than one month. Finished products must go through another series of tests in Automotive Research & Testing Center (ARTC), where the car will be tested with Bcom’s products installed.

Most Taiwan suppliers are investing in R&D projects. Some Taiwan GPS companies have secured licenses for Microsoft, Google and VSRI maps. They have in-house engineers that handle POI design and other value added, such as GIS.

YTC has 15 R&D engineers in charge of software and hardware design, and two QC technicians in charge of IQC procedure. Bcom, on the other hand, has a manufacturing base in mainland China and three R&D centers in Xiamen, Fujian; Shanghai; and Taipei. Its technical partners include Beijing Hyundai Motor Co., Shanghai General Motors and Taiwan Ford Lio Ho Motor Co.

Supa Technology Co. Ltd cooperates with Chunghwa Telecom to develop LBS navigators. The new application allows users to enter the phone number of the destination through a touch panel, which will show the map and additional information about the destination.

Some makers are also developing telematic systems with A-GPS. Models that are equipped with A-GPS use GPS satellites and cellular base stations to pinpoint locations with accuracy of 5m to 10m in optimum situations. A-GPS helps in calculating precise positions, especially under poor reception conditions. Some makers offer models with DR. Suppliers predict GPS and Galileo dual-mode GPS devices will be mainstream for telematics.

Some of the leading raw material and component suppliers for Taiwan’s telematic product makers include MediaTek Inc., Princeton Technology Corp., Taitien Electronics Co. Ltd, Tai-Saw Technology Co. Ltd and Ariose Electronics Co. Ltd. GPS module suppliers include Garmin Corp., GoPass Technology Corp., Sheng Jay Automation Technologies Co. Ltd, Professor Technology Co. Ltd, Globaltop Technology Inc., Globalsat Technology Corp., Youngtek Electronics Corp., Leadtek Research Inc. and Supa. Garmin and Systems & Technology supply GIS maps.

The rising costs of raw materials is the most difficult challenge for companies. Taiwan makers source LCD panels from local suppliers for their good quality and lower prices. For LCD panels used in telematic devices, makers procure materials from Chunghwa Picture Tubes, Lightsonic Optoelectronic Inc. and AUO.

The GPS antennas used are patch, helix, spiral or PIFA, with patch and helix antennas widely adopted. Quadrifilar helix antennas that support more than 3dB gain are more expensive than other antennas.

Makers source GPS chipsets from Qualcomm, SiRF, Broadcom, TI, u-blox, Nemerix, eRide, CSR, CellGuide, GloNav, u-Nav, Infineon, SiGe Semiconductor, STMicroelectronics, SkyTraq and MediaTek. Several telematics suppliers that source GPS chipsets from SiRF are now shifting to u-blox, saying that chipsets from u-blox that support GPS and Galileo yield better performance.

GIS from PaPaGo is adopted by a number of PND makers from Taiwan.