China is tying its climate agenda more closely to industrial policy. The State Council's newly released Action Plan for Carbon Peaking in the 15th Five-Year Plan sets ambitious targets that could further accelerate domestic new energy vehicle (NEV) adoption while intensifying pressure on foreign automakers.
Aker said auto and industrial control customer demand drove double-digit revenue growth in the first half of 2026, while AI-related power components also saw a sharp increase in shipments. The quartz component maker said it is also advancing optical communications products, targeting mass production of its 312.5MHz model by year-end and a 625MHz upgrade in 2027.
Sitronix Technology said this week that zero-capacitance touch with display driver integration (TDDI) and automotive display drive IC (DDI) will drive its growth in 2026, as the chipmaker reported strong June and second-quarter revenue and said demand should remain positive into the second half of the year.
The rise in global defense budgets has led to new opportunities for mainstream automakers as they seek to diversify their operations, yet the move into military and defense-related manufacturing presents another set of hurdles to overcome. These include lengthy certification cycles, highly fragmented specifications, and uncertainties surrounding policy continuity.
Egis Technology on July 9 said it sold part of its stake in iCatch Technology as part of a routine adjustment to its group equity holdings. The IC design company said the move was intended to improve capital efficiency and optimize its ownership structure, while Egis remained an important shareholder with about 12% of iCatch after the transaction.
Global automakers are accelerating their expansion into defense manufacturing as geopolitical tensions fuel record military spending and persistent challenges in the automotive sector leave production capacity underutilized. Industry leaders, including General Motors (GM), Volkswagen, Mercedes-Benz, Renault, and Ford, are leveraging their large-scale manufacturing expertise to tap growing demand for military vehicles, logistics platforms, and defense systems.
German luxury carmaker Porsche reported global deliveries of 122,300 vehicles in the first half of 2026, down 16% from a year earlier, with sales in the China market remaining weak and falling by more than 30% year over year.
Artificial intelligence-defined vehicles (AIDV) are already a familiar concept in China, but the idea is now drawing wider attention after US startup Rivian announced at the launch of its R2 model that it is moving beyond software-defined vehicles (SDV) toward AIDVs. However, this has raised questions about whether mainstream automakers must confront yet another new hurdle before their SDV transformation is complete.
LED automotive lighting module maker Laster reported June consolidated revenue of NT$500 million (US$15.58 million), down 31.67% from May and 29.48% year on year. Even so, second-quarter revenue climbed 13.30% to NT$1.92 billion, as the company prepared for new vehicle mass production in the second half and an initial move into the robotics module market.
AI-defined vehicles (AIDVs) are built on software-defined vehicles (SDVs), and Tesla is arguably the world's most representative company at integrating and commercializing these technologies. Yet the market rarely hears Tesla emphasize or explain the AIDV concept.
Tung Yang's latest sales update suggests a modestly improving outlook for the auto parts industry as trade policy becomes clearer and geopolitical risks appear to ease. For global buyers and suppliers, that matters because any pickup in ordering could ripple through production, inventories, and pricing across the vehicle parts supply chain.
More coverage
