TAIPEI (Taiwan News) — Taiwan’s electronics companies are poised to take advantage of the global shift toward electric vehicles (EVs).

Taiwanese companies previously struggled to make a large footprint within the supply chain for internal combustion engine vehicles, Bloomberg observed. However, with carmakers increasingly transitioning toward EVs, automobiles now require more electronic components than ever before.

Consumers worldwide have also been pushing for more sustainable, smarter vehicles. Meanwhile, the pandemic has increased the need for private transport.

The pandemic also created a global chip shortage, which put a spotlight on the importance of Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world. While chips for cars only account for a tiny fraction of TSMC’s overall sales, its role in the car supply chain was important enough for officials from the U.S., Germany, and other countries to ask Taiwan to up the production of less advanced silicon used in automobiles, according to the report.

The car industry’s shift toward EVs has created more opportunities for other companies in Taiwan too. For example, Foxconn Technology Group, Pegatron, and Quanta Computer have been supplying parts to electric carmaker Tesla, Bloomberg said.

Delta Electronics now supplies powertrains to GM, Stellantis, and other important automakers. Meanwhile, PC and server manufacturer Inventec is working with tier-one suppliers Bosch and Continental to supply motherboards.

Local Taiwanese officials are eager to help companies gain a foothold within the EV supply chain as well. The Tainan City Government is currently looking for suitable real estate within industrial parks to set up specialized zones for car electronics suppliers to construct offices and plants, per the report.