Dongyang Approves NT$5 Dividend Per Share, Hopes Lower US Tariffs Boost Industry Competitiveness

(Taipei, June 17, reporter Chung Jung-feng) Automotive parts manufacturer Dongyang held its annual shareholders' meeting today in Tainan, approving a cash dividend of NT$5 per share from retained earnings and successfully re-electing seven board members (including three independent directors). Dongyang stated that the reduction of US tariffs on auto parts exports to 15% places Taiwan's automotive component industry on a more equitable competitive footing with its main rival countries.

Looking ahead, Dongyang noted that with the US tariff policy on auto parts finalized and the potential de-escalation of Middle East conflicts, uncertainties are gradually dissipating. Market demand is stabilizing, and customer procurement rhythms are expected to normalize, driving overall order performance in the second half of the year and returning the industry to a normal growth trajectory.

Dongyang emphasized its commitment to continuously strengthening core competitiveness and enhancing sustainable growth capabilities.

To seize future growth opportunities, Dongyang is actively advancing various initiatives this year. Technologically, it is expanding R&D talent for both original equipment manufacturing (OEM) and aftermarket (AM) segments and entering the automotive electronics sector, focusing on new product and mold development.

Regarding ESG (Environmental, Social, and Governance), Dongyang plans to invest nearly NT$200 million to install environmental protection equipment and introduce AI assistants to improve human resource efficiency.

In terms of production capacity, Dongyang stated that its Tainan Science Park factory and Qigu plant are being completed sequentially, while the Hsinchu plant continues to progress according to schedule. These developments aim to strengthen the company's overall production and sales layout to support operational growth over the next three to five years.

Taiwan and the US signed an investment MOU in January this year, making Taiwan the first country globally to receive preferential treatment under the US Section 232 tariffs for non-semiconductor sectors. In late May, the US government announced the implementation of these non-semiconductor 232 tariff benefits for Taiwan, effective May 1. These include auto parts, logs, wood, and wood-derived products being capped at a tariff rate of no more than 15%, and steel, aluminum, and copper derivatives in aircraft components being exempted from Section 232 tariffs. (Edited by Lin Chia-hsien) 1150617