Electric vehicles (EVs) are a prime opportunity for Taiwan, according to Pegatron ChairmanTung Tzu-hsien (\u7ae5\u5b50\u8ce2 ), who said the output value of EVs is eight times that of semiconductors.<\/p>\n\n\n\n
Tung discussed the prospects for retail investors, saying the EV sector is still developing and that profits for companies fluctuate wildly. Investors intimidated by such instability can consider exchange-traded funds (ETFs) to diversify their capital across the industry, he added.<\/p>\n\n\n\n
There are several verticals to invest in, including automakers like Tesla, Nio, and Byton, all of which have seen explosive growth after launching new models, he said. Another option is to invest in tech giants like Apple, NVIDIA, or AMD, which have huge capital resources and a diverse range of products beyond vehicles.<\/p>\n\n\n\n
Since the number of electronic devices in EVs is significantly higher than in traditional vehicles, there is increased market demand for the components that Taiwan’s subcontract manufacturers have been developing for a long time, Tung said.<\/p>\n\n\n\n
Though Taiwan manufacturers previously focused on making these components for the electronics industry in the past, now they will be able to ride the EV growth wave. In this way, companies will avoid the cumbersome car certification process that automakers endure and directly bypass the traditional supply chain to directly become tier-one suppliers.<\/p>\n\n\n\n