Terminal connector makers Chialin Precision Industrial and CY Precision have signed a pact to co-develop automotive components and devices for the China market.
Under the agreement, the two firms will set up a new company to focus on manufacturing automotive-use terminals, connectors, injection parts and harness assemblies with an initial paid-in capital of NT$30 million (US$1 million).
The new company will also target potential clients including China FAW Group, SAIC Motor and Geely Auto.
Demand for automotive-use terminals, connectors and other auto parts is set to grow robustly in the coming years as the number of vehicles in use in China is expected to grow 280 million units by 2030 from 180 million currently, according to sources at Chialin.
Chialin posted revenues of NT$1.485 billion, net profits of NT$209 million and an EPS of NT$3.34 in the first quarter of 2018. Of first-quarter revenues, sales of auto parts totaled NT$281 million, up 5.87% on year.
Article translated by Steve Shen
