Despite delivering solid earnings, Japan's TDK Corporation warned that China's tighter rare earth export controls are heightening supply chain risks, placing growing procurement pressure on manufacturers dependent on critical minerals and pushing geopolitical tensions into the electronic materials sector.
China has stepped up electric vehicle safety regulation, with the Ministry of Industry and Information Technology approving a new mandatory national standard, Technical Requirements for Automobile Door Handle Safety (GB 48001-2026). The rules require all EVs sold in China to feature independently operable mechanical door-opening mechanisms on both the inside and outside, banning designs that rely entirely on electronic systems or concealed handles.
Lunar New Year 2026 is approaching. So is the outcome of tariff negotiations between Taiwan and the United States. Few issues are being watched more closely than the potential opening of Taiwan's market to American-made cars.
NXP Semiconductors reported a sequential recovery across most end markets in its fourth-quarter results, yet its core automotive business grew more slowly than anticipated. This performance highlights an uneven semiconductor rebound, where strength in the mobile and industrial sectors must offset persistent instability in the vital automotive segment.
China's automotive sector faces mounting profit pressure despite growing sales volume, with the average profit margin dropping to a near five-year low of 4.1% in 2025, according to the China Automobile Dealers Association. Dong-Shu Cui, secretary-general of the China Passenger Car Association, revealed that total industry profits reached about CNY461 billion (US$66.3 billion) in 2025, up only 0.6% year-over-year.
Automobiles are rapidly transforming into servers/smartphones-on-wheels with the advancement of autonomous driving technologies, which has led to a surge in demand for automotive memory. Samsung Electronics and SK Hynix are viewing the automotive sector as the next major battleground after AI, with both South Korean memory giants taking proactive measures to gain a foothold in this emerging market.
The global energy storage system (ESS) market based on lithium-ion batteries expanded in 2025. According to ET News and Ddaily, SNE Research reported that global shipments of lithium-ion batteries for ESS by manufacturers totaled 550 GWh in 2025, up 79% from 307 GWh in 2024, reflecting strong growth momentum. However, China alone accounted for more than 60% of the total. Unlike electric vehicle (EV) batteries, which are installed in vehicles and then sold to consumers, ESS batteries are typically deployed directly into regional projects. As a result, there is little discrepancy between shipment volumes and actual installed capacity.
Hyundai Motor Group's vehicle brands Hyundai and Kia saw their combined revenue exceed KRW300 trillion (US$208.6 billion) for the first time in 2025, breaking a record high. Even so, the two companies together absorbed as much as KRW7.2 trillion in costs due to US tariffs, leading to a marked decline in profitability.
Ray Wu, CEO of Suntek Motor Group, a leading Taiwanese importer and dealer of luxury brands including Porsche and Skoda, told DIGITIMES that while Taiwan's auto market is expected to outperform in 2026, the company does not view growth as merely a matter of securing larger allocations from overseas manufacturers. Instead, Suntek is pursuing a rolling, quarter-by-quarter operational strategy designed to manage inventory risk—an approach shaped by recent market volatility.
Vietnamese automaker Kim Long Motor announced plans to collaborate with Chinese electric vehicle (EV) manufacturer BYD on a US$130 million battery factory in central Vietnam, signaling a growing push into the region's electrification sector.
Tesla is entering what executives describe as a "turning point" year. As the company pushes forward with robotaxi deployment and Full Self-Driving (FSD) technology, it must also navigate potential bottlenecks in global semiconductor supply that could define its medium-term growth.
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