China's solar industry is still trapped in a painful shakeout after three straight years of losses across much of the supply chain, according to first-half reports from leading companies. Persistent overcapacity, weak downstream demand, and rising overseas barriers have left the sector under pressure, while investors are watching for signs that similar problems could spread to energy storage and new energy vehicles.

LG Energy Solution plans to establish a sodium-ion battery mother line at its Ochang Energy Plant in South Korea in 2026, seeking to narrow CATL's early commercial lead in energy storage systems.

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China's passenger vehicle market posted its sharpest slowdown in years in the first half of 2026, with private passenger car sales falling 20% year on year, according to the China Passenger Car Association. The slide has pushed exports from a growth driver to the main support for automakers, while also exposing the sector to growing geopolitical risk.

Semiconductor suppliers have begun rolling out one to two rounds of price increases and tighter allocations in the first half of 2026 as demand from GenAI, geopolitical tensions and inflation continue to reshape the market. Automakers have been watching closely for signs of a repeat of the pandemic-era auto chip shortage, but supply-chain sources said production has so far remained stable.

Hotai Leasing said on July 15 that Taiwan's auto market is expected to return gradually to normal growth in 2026 after tariff uncertainty, vehicle shortages, and tight financing pressured demand in 2025. The company also said younger consumers are increasingly shifting from car ownership to on-demand rental models, signaling a broader change in how vehicles are used in Taiwan.

The US electric vehicle market showed signs of stabilizing in the second quarter of 2026 after federal clean-vehicle tax credits expired in September 2025, although sales remained well below year-earlier levels.

South Korea is accelerating efforts to build an advanced air mobility industry, but the sector is still struggling to produce a workable aircraft body. As US and Chinese rivals move faster toward certification and trial operations, Korea Aerospace Industries (KAI) and Hyundai Motor Group have moved to deepen cooperation on a joint development plan.

Memory suppliers have regained pricing power as AI-driven stockpiling and advance capacity bookings tightened supply for consumer electronics and automotive customers. The shift has become especially visible in the Apple supply chain, where industry sources said the company is now effectively the last major line of defense as vendors push for higher prices and allocate capacity elsewhere.

Nfore Technology is set to list on Taiwan's emerging stock board on July 22, betting that demand for connected-car systems, smart cockpits, and vehicle software will keep rising as automakers compress development cycles and look for more integrated suppliers. The company plans to increase software licensing and integration services.