As Computex approaches, DIGITIMES hosted a forum where analyst Mark Yee argued that Physical AI is driving autonomous driving into full commercial validation, with implications for market structure and technology leadership.

The 2026 Beijing Auto Show, which concluded on May 3, offered a glimpse into what may become the next defining chapter of China's automotive industry: not simply electric vehicles, but intelligent mobility powered by artificial intelligence, autonomous driving, and deeply localized innovation.

Hotai Motor Co. said it will produce Toyota's Noah and Voxy models in Taiwan and begin exporting them to Japan in October 2026, a move aimed at deepening Taiwan's role in the global automotive supply chain and supporting Japan's vehicle demand. According to Japanese media reports and Hotai statements, Toyota will add a dedicated production line in Taiwan, with output currently built at Toyota Auto Body's Fujimatsu plant and set to expand to Kuozui Motors' Guanyin plant from October 2026.

Forcelead Technology said it expects stable operations through 2026 as it rolls out a touch-TDDI product and pursues new automotive display opportunities, a development with implications for global suppliers and aftermarket channels as automakers adopt more advanced cockpit features. The company aims to protect margins while expanding beyond its core display business.

Hotai Motor Co. said it evaluated importing US-made large SUVs and pickup trucks and announced trial operations for a hydrogen bus fleet in southern Taiwan in the third quarter of 2026, as the automotive group reported record revenue for April and for the first four months of 2026. The company attributed the revenue highs to strong domestic deliveries and the first-time consolidation of five newly acquired Hino dealerships in Japan.

Looking ahead to 2026, AUO said the global economy is stabilizing and returning to growth, but that international trade disputes and regional conflicts still pose risks. It added that the consumer electronics market is also being weighed down by AI-driven inflation and weak demand, creating more uncertainty for an industry recovery.

Yulon Motor said at an investor conference on May 20 that it will fully support Foxtron Vehicle Technologies' production capacity requirements, with the N7, Bria, and the latest Carvia models now being mass-produced at Yulon's Sanyi plant. The company disclosed first-quarter 2026 operating results and outlined a strategy covering vehicle manufacturing, energy services, asset monetization, and overseas expansion.

As China's solar market enters a downfall, market sources indicate that China's central government is reshaping the industry landscape through an aggressive dual-track strategy. On one hand, authorities continue tightening funding for the mainstream tunnel oxide passivated contact (TOPCon) technology. On the other hand, they are launching targeted national-level support measures for higher-efficiency next-generation technologies such as heterojunction (HJT) and back-contact (BC).

Iron Force Industrial saw short-term pressure in its operations during the first quarter of 2026, due to tariff swings in the US-China trade war, adjustments to its product mix, and foreign exchange losses from a stronger Chinese Yuan. The automotive safety parts and thermal solutions maker also pointed to new progress in its efforts to enter the AI server cooling market, with liquid-cooling products set to become a new growth driver as shipments begin in the second quarter.

NXP Semiconductors is positioning its CoreRide platform as a way for automakers and Tier 1 suppliers to shorten development cycles for software-defined vehicles, even as the chipmaker's move deeper into system-level solutions raises questions about how its role in the automotive supply chain may evolve.