The US government reportedly plans to raise tariffs on China-made clean energy products, especially EVs. Supply chain sources said the move will likely achieve instant success: protecting the US automotive industry from China's price war and fostering America's local supply chain.
As Tesla lays off almost its entire team for charging business and slows charging station deployment, its competitors are poised to grow their market share and lure talents who left the company.
Samsung Electro-Mechanics (Semco) is reportedly expediting the development of its semiconductor packaging-use Glass Core Substrate (GCS) business by advancing the construction of a glass substrate trial production line by one quarter, aiming to stay competitive in the semiconductor materials market.
The US is poised to take a tough stance on China's clean energy products. The Biden administration reportedly will soon announce new tariffs on China-made EVs, solar goods, and other products, with EVs likely seeing their levy quadruple.
China's homegrown car companies attracted the automotive industry's attention at the 2024 Beijing Auto Show last week, while global automakers gathered at the site.
Panasonic Group reported a record-high net income for the fiscal year ending in March 2024. Its battery business received significant tax credits from the US Inflation Reduction Act (IRA).
The US-China trade relationship will likely exacerbate as the US might take "extreme action" on Chinese-made connected cars. The Biden administration is also considering new tariffs on several sectors China dominates, including EVs.
Magna International's Austrian plant is experiencing a double hit resulting from the sluggish EV demand. An EV startup customer has filed for bankruptcy, and orders from legacy automakers lack a driving force.
Toyota Motor reported hefty profit growth for the past fiscal year ending March 2024, thanks to booming hybrid EV sales and a weaker Japanese Yen. The automaker said it plans to invest JPY2 trillion (US$13.79 billion) in its suppliers, growing the EV lineup and developing Software-Defined Vehicles (SDV).
Asia Optical, one of Taiwan's leading optical device suppliers, has achieved several breakthroughs in recent months, as stated by chairman Lai Yi-Jen during the company's earnings call on May 8. The company will pursue a three-pronged strategy as it expands its business: a strategic alliance with LG Innotek (LGIT), one of South Korea's leading lens module manufacturers; expansion of its facilities in the Philippines; and investment in cutting-edge Metalens technology.
The US is giving its automotive industry another boost toward EVs. The federal government will offer over US$100 million in grants to help small- and medium-sized automotive components suppliers expand or retool their production facilities.
Taiwan-based Tong Yang Group announced its operating results for April 2024 on May 7. The leading car components supplier also revealed that it had purchased land at the Cigu Technology Industrial Park in southern Taiwan to expand production.
Rumors have been around in the electric vehicles market, with Tesla's Cybertruck recently facing a recall, causing a temporary slowdown in supply chain deliveries. It is anticipated that deliveries will resume in the third quarter.
A rapidly growing, global market for hybrid electric vehicles should power earnings at major Asian automakers including Japan's Toyota Motor Corp. and India's Tata Motors Ltd.
Samsung SDI and Stellantis have been building a joint battery plant in the US to produce the South Korean company's sixth-generation prismatic battery, P6.
The US Department of Treasury will grant EV makers a two-year extension for restrictions on some hard-to-trace battery materials, including China-dominated graphite. The move was welcomed by automakers while upsetting some US politicians.
Leading South Korea-based battery manufacturers LG Energy Solution, Samsung SDI, and SK On reported unsatisfactory financial performance in the first quarter of 2024 due to slow EV market growth, customers adjusting their inventory levels, and falling metal prices.
Amidst the global economic downturn and the continuous slowdown in end-product IT demand, Samsung Electro-Mechanics (Semco) and LG Innotek, which previously experienced severe performance slumps, have outperformed industry expectations in the first quarter of 2024 by supplying high-value-added products for AI and EV demand.
Chinese carmaker Seres, a Huawei partner, came out of the red in the first quarter of 2024 after experiencing losses for five years. The Aito EVs it co-developed with Huawei have gained traction in the market and accounted for 70% of Seres' sales volume.
While the European Union and the US have imposed many restrictions on China-made EVs, the measures seem also to benefit Chinese carmakers. European and US consumers have become more aware of Chinese EVs, which may affect the future market dynamic.
Foxconn has invested in critical EV components and modules, in addition to vehicle manufacturing, to scale its EV venture. Its partner ZF Group, one of the leading automotive suppliers, announced on Wednesday that the two companies had completed the process of forming a joint venture for passenger car chassis systems on April 30.
