Geopolitically driven supply-chain realignment is pushing the global auto industry into a critical moment of risk diversification. An emerging industrial bloc centered on "non-China" supply chains is beginning to take shape, reshaping how automakers and technology companies source, build, and deploy vehicles.
Samsung Electronics' decision to acquire a major advanced driver-assistance systems (ADAS) business through its subsidiary Harman is widely viewed as a decisive escalation of its ambitions in automotive electronics. Yet the move is also stirring unease among industry observers, who warn that it could complicate Samsung's long-standing partnership with Hyundai Motor Group, raising questions about how the two South Korean giants will navigate an increasingly crowded and competitive automotive technology market.
On the eve of CES 2026, Foxconn Technology Group quietly completed a consequential move: its electric-vehicle subsidiary, Foxtron, finalized the acquisition of 100% of the Taiwanese automaker Luxgen. The transaction is less a brand purchase than the final piece in Foxconn's effort to assemble a full electric-vehicle value chain.
Xiaomi CEO Lei Jun used a recent New Year livestream to set a bold target for the company's electric vehicle (EV) business: 550,000 vehicle deliveries in 2026. During the broadcast, Lei also conducted a live "teardown" of the YU7 model, emphasizing the car's safety-oriented design.
Against a backdrop of cyclical adjustment and structural transformation in the global electronics industry, Foxconn Technology Group is opening 2026 with what it calls a "dual-engine" strategy.
SK On, a battery unit of SK Innovation, has scaled back its investment plans and postponed the expansion of its new factory in Seosan, Chungcheongnam-do, South Korea, due to a slowdown in the electric vehicle (EV) market and uncertain battery demand. Initially planning to invest KRW17.534 trillion (approx. US$12.15 billion) to develop a third plant and upgrade the second plant, SK On has cut the committed investment to KRW936.3 billion so far, with around KRW820 billion to be spent later as part of the revised expansion schedule.
Indian OSAT players aim for price competitiveness on par with Malaysian rivals, as L&T Semiconductor is scheduled to announce products at CES.
The global automotive market reached a critical turning point in 2025 amid unprecedented pressures from tariffs, policies, and inflation, triggering preemptive buying before expected downturns. In China, domestic sales are estimated to have hit 27 million units in 2025, nearing the historic peak of 2017.
China's expanded vehicle trade-in program is set to reinforce its rise as the world's largest auto market, supporting domestic demand while intensifying export pressure overseas. As sales overtake Japan's for the first time, the policy highlights how Beijing is linking consumption stimulus with industrial and geopolitical ambitions.
2025 proved turbulent for downstream applications and end-user devices. Tariffs and geopolitical tensions dominated the first half, while AI gained momentum later in the year. Global market unpredictability pushed many brands—particularly in China, the epicenter of geopolitical tensions—toward domestic markets and self-sufficiency.
The Ministry of Transportation and Communications (MOTC) released the Taiwan New Car Assessment Program (TNCAP) results for the fourth quarter of 2025 on December 29, 2025, highlighting the Luxgen N7 as the sole model to achieve a 5-star safety rating. The announcement follows comprehensive testing of four selected vehicles, an initiative aimed at enhancing consumer transparency and raising overall vehicle safety standards across Taiwan.
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