Business

Telematics shapes the future of Taiwan’s ICT industry

Road transportation will become safer and more energy efficient with mobile devices and services enabled by telematics. (CNA photos)

• Publication Date：03/12/2010
• Source： Taiwan Today
• By  Meg Chang

With “green earth” being the talk of the day, a new industry known as “telematics” is emerging as an effective solution to global warming. It also promises to reshuffle the world’s information communications technology sector. Taiwan hopes to gain a firm foothold in this new playing field by taking an early start.

In a nutshell, telematics refers to the next generation of mobile electronics applications, according to Chang Chia-hsiang, deputy director and executive secretary of the Telematics Promotion Office created by the Ministry of Economic Affairs in June 2009.

“When you find yourself lost in the underground shopping mall of Taipei Main Station or the labyrinth of exhibition booths in major trade shows like the Computex Taipei, there is nothing more desirable than getting instant directions through your handset or portable electronic device,” he said. This kind of location-based services is just one example of the many potential applications of telematics.

The ICT sector has reached the point where room for further technological improvements is limited, let alone whether there is really any need for such improvements, the expert pointed out. “So where does the ICT sector go from here? My answer is green energy and broadband wireless communication. Telematics is the killer application of both.”

“Going into the future, we will see two paradigm shifts; one is in telecommunications, the other in new energy,” Chang told “Taiwan Today” during an interview Feb. 23.

It is well known that automobiles are a major contributor to greenhouse gases, said Chang. “If we can make public transportation more available and convenient, and if we can plan the least-busy driving route before we hit the road and avoid traffic gridlock with instant traffic reports supplied by roadside units, we can greatly reduce carbon emissions. Telematics can help us do just that,” Chang explained.

Automobiles powered by new energy will bring about an overhaul to the car industry, and electric vehicles will ultimately become the predominant mode of road transportation, Chang predicted. “When that day comes, everything above the automotive chassis system will be completely revolutionized, including dash boards, global positioning systems, car stereos, collision sensors and tachographs, to name just a few.”

Telematics will revolutionize the car industry and reshuffle the world’s ICT sector.

Not only that, in the future all of the portable electronic devices that have become an integral part of daily life will be able to interface with automobiles on the road. The need for higher mobility will also generate demand for more wireless devices and location-based services, such as instant traffic updates and online directions. “Think about the business opportunities that will be created and the implications for Taiwan’s manufacture-oriented economy,” he said.

In any mature industry, such as consumer electronics and telecommunications, chances of making further market inroads are slim, Chang noted. “Telematics is a completely new game that requires cross-sector integration among electronics, automobile manufacture and telecommunications. We are definitely heading in the right direction by focusing on telematics given Taiwan’s advantages in these areas.”

In a bid to help local firms secure a slice of the global telematics pie, which is estimated at NT$42 billion (US$1.31 billion) in 2010, the MOEA’s Department of Industrial Technology called on more than 60 industry heavyweights from related sectors to set up the Taiwan Telematics Industry Alliance in December 2009.

“Telematics looks set to become the next key industry with a potential output of over one trillion NT dollars to the country. It is also an essential part in the government’s stated policy to build an intelligent Taiwan,” said DoIT Director-General Wu Ming-ji. “The establishment of the TTIA represents a milestone in the nation's efforts to develop its own telematics industry chain,” the official noted.

Leveraging member companies’ individual advantages, the TTIA is divided into four work groups, with Foxconn Technology Group heading the integration of telematics technologies, Advantech Co. Ltd. responsible for setting intelligent bus computing standards, Maction Technologies Inc. in charge of coordinating global positioning technologies and WinPerTurn Corp. developing content-sharing platforms of points of interest.

Among other projects, the TTIA is working with the TPO to establish telematics standards for Taiwan’s 7,000-plus buses, which will all be equipped with TTIA-certified telematics devices in the following years, according to Chang. “We can serve as a model to the rest of the world. Building on the experience, we can also expand our reach into compact cars and form alliances with other countries.”

In June 2010 the TPO will participate in a seminar with mainland China’s relevant entities in Fuzhou City across the strait, Chang revealed. “The two sides will definitely kick off negotiations regarding industry standards. We will also present preliminary results of cross-strait cooperation, including showcasing applications of products made in Taiwan, to be placed in vehicles made in the mainland.”

While mainland China is catching up as a major producer of electronic devices, Taiwan can still maintain its edge on the back of its research and development capabilities, professionalism and sound business philosophy, the expert pointed out. “By starting early, we will have the chance to secure a leading position again in this new game,” he said.

The government should strive to provide a huge boost rather than small assistance to help local players pursue this new venture, he noted. “Our goal is to create a new trend in vehicle transportation with Taiwan’s existing advantages. We definitely have the capability to develop a telematics industry, in the same way we built our world-leading ICT sector over the past few decades. That’s exactly what we are trying to do here at the TPO.”

Write to Meg Chang at meg.chang@mail.gio.gov.tw