The European automotive industry faces unprecedented challenges in 2025, grappling with slow progress in electronic/electrical (E/E) transformation and widespread internal layoffs, while being externally disrupted by Nexperia's semiconductor supply issues. However, the most profound shakeup may come from a "breakthrough battle" launched in September by China's top three automakers—MG, BYD, and Chery—who jointly pushed Chinese plug-in hybrid electric vehicles (PHEVs) to new heights in Europe.

End-market performance is expected to reflect improving demand for automotive chips in the second to third quarters of 2026. The optical industry has benefited significantly, with companies including CALIN, Asia Optical (AO), and Canon focusing on automotive lenses.

China's Ministry of Commerce (MOFCOM) has launched its largest recruitment campaign in nearly a decade, planning to add approximately sixty new officials in 2026. According to a MOFCOM announcement, the Bureau of Industry Security, Import and Export Control plans to recruit at least five new staff members in 2026, the highest number since 2022. Despite the current US-China trade war truce, MOFCOM's rare earth control division continues its expansion.

Continuous upgrades in memory technology have created a structural imbalance in supply and demand. Nevertheless, memory supplier Winbond Electronics delivered strong earnings in the third quarter of 2025. General manager Pei-Ming Chen stated that some customers are even seeking DDR4 long-term contracts of up to six years, and this structural shift is expected to last through 2027.

Taiwan's overall scooter market reached 64,723 units in October 2025, up 1.65% from September's 63,670 units and a 1.15% increase compared to 63,981 units in October 2024. Market data shows Sanyang Motor (SYM) sold 28,091 scooters in October, securing the top spot with a 43.4% market share.

South Korean electric vehicle (EV) battery maker LG Energy Solution (LGES) is facing a major security breach involving the theft of its high-density pouch-type battery technology, which reportedly ended up in the hands of Indian electric scooter manufacturer Ola Electric. The incident has raised significant concerns about the protection of South Korea's core industrial technologies.

Hinge and mechanical component manufacturer Syncmold Enterprise posted weak revenue performance in the first three quarters of 2025, mainly due to geopolitical and macroeconomic uncertainties. However, the company stated that with the gradual results from new products and new customers emerging, it remains cautiously optimistic about future development.

Leading IDMs such as Texas Instruments (TI), NXP Semiconductors, and STMicroelectronics (STM) have reported recent quarterly results indicating a rebound in automotive semiconductor demand and inventory restocking. This trend offers a cautiously optimistic outlook for the global automotive sector despite persistent challenges, including tariffs, geopolitical tensions, and regional economic disparities.

Foxconn Technology Group Chairman Young Liu called for closer collaboration between Taiwan and Japan in electric vehicle development, saying the two sides can combine their strengths to gain an edge in the global EV race.

Dutch chipmaker Nexperia is warning clients that shipments from its Chinese factory are halted indefinitely. The company also says it cannot guarantee the quality of products from the plant, according to a letter obtained by Reuters. The alert comes amid a growing dispute between the Netherlands and China over control of the factory. Beijing has accused The Hague of blocking efforts to solve the problem.