Sourcing Center: Connectors manufacturing industry in Taiwan underscores high-end reach

Taiwan is shoring up its capability to meet steeper product requirements in IoT, 5G and EV deployments.

Taiwan boasts a comprehensive range of connectors from a pool of manufacturers catering to applications including consumer electronics, communications devices, computers, medical equipment, industrial machinery and the automotive industry.

To keep up with emerging trends in these markets, such as the Internet of Things and its subset Industry Internet of Things, 5G technology and vehicle electrification, suppliers there are pursuing active R&D to boost the release of multifunction and modular connectors in small, lightweight but rugged designs. Smart types with self-configuration, self-checking and self-recovery features are also on the agenda. The goal is to turn out connectors that offer various mating and mounting options as well as shielding.

For manufacturers in the region, developing products based on the latest technologies while maintaining a tight grip on quality is key to their objective of expanding reach from the midrange segment to the high-end market.

To this end, companies conduct R&D in-house and use advanced production and test equipment. Chyao Shiunn Electronic Industrial Ltd has an R&D team composed of 40 engineers and allows 15 to 20 percent of annual profit to development work. This strategy ensures the company's designs are up-to-date and specific to customers' diverse requirements.

After a temporary setback at the beginning of the pandemic, Taiwanese suppliers restarted their production expansion in the latter part of 2020 and continue to do so, many with plans for up to 2022.

Join Tek Corp. Ltd, which enjoyed a sales growth of 40 percent in the past year, intends to increase output by 10 to 15 percent at its Taiwan factory in the months ahead to meet rising demand. Chyao Shiunn realized 15 to 20 percent higher sales from late 2020 to early 2021. Its two factories in the Chinese mainland will have additional capacity from a new workshop to be built in 2021.

Based on available data, the global connectors industry has coasted through the pandemic. In 2020, it managed to muster $76.7 billion, increasing 6.2 percent from 2019, according to Qianzhan Research. The top three applications were the automotive, communications and computer sectors, accounting for 22, 21 and 16 percent of total shipments, respectively.

In the next two years, the 5G, electric vehicle and Industry 4.0 trends will continue to boost demand. For 2021, AskCI Consulting's forecast for the worldwide connectors market is more than $80 billion.

At the center of connectors manufacturing are Japan and the US.

According to suppliers interviewed by Global Sources Electronic Components, Taiwan's share of global shipments is between 5 and 10 percent.

Network of production bases

In the past decade, Taiwanese connector suppliers transferred their manufacturing operations to the Chinese mainland to take advantage of its low production costs, comprehensive supply chain and established transport infrastructure.

Foxlink, a key global player from Taiwan, has several factories in the mainland, specifically in Kunshan, Yancheng, Yangzhou and Xuzhou in Jiangsu, Nanchang in Jiangxi and Dongguan in Guangdong. It also invested $450 million in the construction of the 333,500sqm Foxlink Science & Technology Park in Ma'anshan in Anhui province. The first phase, completed recently, has started mass production. Once the entire facility is operational, the company expects it to generate an annual sales value of up to $900 million.

Amid rising labor costs in the mainland, Taiwanese manufacturers have also started building factories in other parts of Asia, mainly in Thailand, Vietnam, India and Myanmar. I-Sheng, which currently derives more than 60 percent of its production capacity from its mainland facilities, will boost its operations in Vietnam to realize full capacity before end-2021.

Connectors from Taiwan

Taiwanese manufacturers offer a comprehensive range of connectors, including PCB, SIM card, RF and medical-use connectors, pin headers, CPU sockets and terminal blocks. They ensure all products are RoHS-compliant and meet CE, TÜV and UL requirements.

The main materials used in the production of connectors are brass and bronze for contacts, shells and terminals, gold,tin, nickel and silver for plating, and liquid-crystal polymer (LCP) and nylon 9T for insulators. These inputs come from Taiwan or the mainland. LCP is also sourced from foreign companies.

So far this year, material supply has remained stable, but costs, especially of copper, have been fluctuating, forcing manufacturers to raise quotes by 5 to 20 percent. There is no sign that costs will stabilize soon. Suppliers are hoping they will do so in 2022 if not toward the end of this year's.

Chyao Shiunn Electronic Industrial Ltd

Year established: 1985
Head office location: New Taipei City, Taiwan
Key export products: Connectors
Annual export sales: $64 million
Total monthly capacity: 550 million units
Export ratio: 100%
Main export markets: Asia, Europe, North America

Model: JS-1124-New
MOQ: Negotiable
Delivery: 7 days
Description: Wire-to-board connectors; 100VAC/DC, 2A; 800VAC/min withstand voltage; 20mohm maximum contact resistance; 1,000Mohm minimum insulation resistance; -25 to 80 C

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Hsuan Mao Technology Co. Ltd

Year established: 1989
Head office location: New Taipei City, Taiwan
Key export products: Connectors
Average monthly exports: 158 million units
Total monthly capacity: 185 million units
Export ratio: 95%
Main export markets: Europe, North America, Asia

Model: C1273-XXBDGFA0R
MOQ: Negotiable
Delivery: 7 days
Description: Pin header; dual rows; brass contacts, gold flash plating; nylon 6T insulator; 1A; 500VAC dielectric withstand voltage; 500Mohm minimum insulation resistance; 1.27x1.27mm

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Join Tek Corporation Co. Ltd

Year established: 1993
Head office location: New Taipei City, Taiwan
Key export products: Connectors
Annual export sales: $6 million
Average monthly exports: 330,000 units
Total monthly capacity: 600,000 units
Export ratio: 100%
Main export markets: North America, Asia

Model: JTWP-12
MOQ: Negotiable
Delivery: 7 days
Description: Connector; 2 to 8 pins; standard or screw type; 250V rated voltage; 3A rated current; ≤10mohm contact resistance; ≥20Mohm insulation resistance; -40 to 85 C operating temperature; up to 200 mating cycles; IP66 or IP67 rating

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Kunming Electronics Co. Ltd

Year established: 1978
Head office location: Taipei, Taiwan
Key export products: Connectors
Annual export sales: $9 million
Average monthly exports: 6 million units
Total monthly capacity: 10 million units
Export ratio: 90%
Main export markets: Europe, North America, Asia-Pacific

Model: HJC-034
MOQ: Negotiable
Delivery: 7 days
Description: IEC 60320 C8 socket-type AC power connector; 2 pins; nonpolarized; 250VAC, 2.5A rating; cUL, RoHS, VDE, UL

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