The ministry said it is launching a program called "Project to Establish Indigenous Technology for the Automobile Industry" to support development of auto projects focusing on safety, information systems and navigation. The government also is supporting development of RFID "service modules" for the auto industry as part of a demonstration auto supply chain project.

Other technologies the project will focus on include telematics systems, auto lighting, LED headlights, parking systems and tire pressure monitoring systems, the ministry said.

Taiwan currrently has about 2,000 companies serving the auto electronics market. "Taiwan hopes to expand its supply of auto electronics to major car manufacturers around the world," the ministry said in a statement. "To aid in this expansion, the Taiwan government has identified segments of the industry where investment is needed."

A key regional focus for the Taiwan effort is the booming Chinese auto market. Industry analysts said growing consumer demand in China has helped fuel a global automotive recovery.

The government estimates that Taiwanese auto electronics production could triple by 2015 to more than $9 billion annually as demand in China and other Asian markets surges.